The number of job vacancies across Canada has fallen to a two-year low, suggesting that the labour market is beginning to cool amid higher interest rates that are used to lower inflation.
The number of unfilled jobs fell 26,000 to 759,000 in May of this year, the lowest level in two years and down nearly 25% from a peak of one million in the same month of 2022, said Statistics Canada.
Canada’s job vacancy rate, or the number of vacant jobs relative to the total number of available positions, also hit a two-year low of 4.3%.
The data suggests that businesses are having an easier time finding workers as the economy slows due to higher interest rates.
Job vacancies decreased in six sectors during May, led by healthcare. At the same time, vacancies increased in three sectors: manufacturing, finance, and insurance.
The number of payroll employees increased by 129,900 in May, boosted by federal government public administration workers who returned to their jobs after a strike in April.
Excluding the federal workforce, payroll employees increased by 23,300 in May, said Statistics Canada. Average weekly earnings for all employees rose 3.6% in May from a year earlier.
