Half of Canadian companies plan to add positions in H2, but remain 'cautious' in hiring: Poll
Roughly half of Canadian businesses plan to add new positions in the second half of 2024, according to a new poll, although many employers are taking longer to hire for open roles.
The Robert Half survey, conducted in the first two weeks of June, was of 1,800 hiring managers at companies in Canada representing a range of industries with more than 20 employees. Robert Half says those surveyed have responsibilities in finance and accounting, technology, marketing and creative, legal, administrative and customer support and human resources.
According to the poll, 52 per cent of companies plan to add new positions in the second half of 2024, and another 41 per cent say they plan to fill existing vacated roles. That’s roughly in line with the first half of the year, when 54 per cent said they will be adding new positions, and 40 per cent said they will be filling vacant roles.
“Despite the fact that companies are being much more cautious and methodical in how they hire, they are very much looking to add positions in the second half of 2024,” Robert Half senior regional director Mike Shekhtman said in an interview with Yahoo Finance Canada.
Shekhtman notes that the 2024 job market is more balanced than it was in 2022, when pent-up demand for talent combined with a labour shortage saw many companies fighting for new hires. Now, he says companies are more cautious about the state of the economy, although they are confident that their business will grow and are still hiring. The survey found that company growth was the primary factor influencing hiring for 50 per cent of those surveyed, followed by employee turnover (41 per cent) and project-based work requiring skilled professionals (39 per cent).
“They’re not fully investing into every single department. Every requisition that they get is much more thoughtful in their approach, and if anything, it’s taking a bit longer for them to hire individuals,” he said.
In fact, according to the survey, 90 per cent of hiring managers reported difficulties finding skilled professionals. Another 32 per cent of those polled anticipate it will take longer to hire people than it did in the first half of the year. The survey found that the biggest challenge for hiring managers is a lack of applicants with the required skill set (51 per cent), followed by finding candidates who align with company culture (49 per cent) and hiring quickly enough to land the best talent.
The survey results come as the Bank of Canada says slack has opened up across certain segments of the labour market. In its quarterly Monetary Policy Report released last Wednesday, the central bank said that much of the easing in the labour market has occurred through a fall in job vacancies, which are now near their historical average, and a much lower job-finding rate. Youth and newcomers to Canada have been particularly affected.
“It’s not affecting workers in the same way,” Bank of Canada Governor Tiff Macklem said at a press conference last week.
“It’s the younger worker who has finished school, has graduated and is entering the job market looking for their first job. It’s taking longer to find that first job. It’s the new immigrant, the new non-permanent resident that’s entering the country looking for a first job. It’s taking longer to find that first job.”
While the survey found that companies are still hiring, the pace of hiring growth is not keeping up with population growth, as the June labour force survey showed. Shekhtman also notes it is taking companies longer to hire individuals.
“I think companies are being a little bit more cautious. They want to get it just right,” he said.
“Companies are just that much more gun-shy about pulling the trigger. They are trying to get it perfectly done.”
Alicja Siekierska is a senior reporter at Yahoo Finance Canada. Follow her on Twitter @alicjawithaj.
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