Canadians staying in jobs longer than before: report

An unprecedented number of Canadians are staying put in the same job, bringing some surprising stability to the employment market, except of course for those trying to get in.

A new report from CIBC World Markets says the number of Canadians who have stayed in the same job for more than 5 years is at a record high, while those with less than a year in a role is at a record low.

"This stable and boring job market is the complete opposite of what was envisioned not too long ago," CIBC economists Benjamin Tal and Nick Exarhos say in the report.

The findings, which use data from Statistics Canada, disrupt the notion that employees are becoming more disposable.

The economists say that’s because employers are working hard to hang on to their qualified workers, particularly as the Baby Boomer generation continues to retire. Many workers are also staying put, for fear of joining the ranks of the unemployed. After all, there are still 1.3 million unemployed people in Canada, and the jobless rate sits at 7 per cent.

“The situation today keeps employers motivated to keep workers they have. At the same time, a large overhang of long-term unemployed reduces the motivation of lower skill employees to branch out," the report states.

It says there is a 60 per cent chance Canadian workers will stay on with an employer after their first year on the job, which is close to a record high. Retention rates jump to 95 per cent for workers with five or more years at a company.

The number of people who have been unemployed for less than three months is also near all-time lows, while those unemployed for 27 weeks or more remains high.

The economists say it all comes down to workers having the skills employers want.

"Rising survival rates between years of employment and increased stability makes sense in a world where there is a low supply of newly unemployed—and presumably still qualified—individuals,” the report states. "Large swaths of those unemployed are not what employers are seeking."

Of course many workers continue to jump around between employers, seeking a better fit or better career path.

A recent Workopolis poll showed only 30 per cent of Canadians stay in one job for more than four years compared with about 60 per cent in 2002.

Some believe too much job-hopping can hurt your career. A recent report from employment services firm Robert Half says more than six job changes over a decade could be a red flag for future employers.

“Leaving one job for a better one can be a smart career move, but too many employment changes in a short time span can give HR managers cause for concern,” Robert Half said upon releasing its survey results earlier this year.

In its report, CIBC acknowledges Canadians “have to go a little higher these days” to get a job, and that not all vacancies left by retirees are being filled as companies look to curb costs amid unsteady growth.

“Landing a job becomes harder today than it was previously,” the economists write.

Still, they believe workers shouldn’t be discouraged.

“The current environment also suggests that once that higher bar is cleared, a career featuring higher stability lies ahead.”