Talent Insights Monthly Digest - February 2024

• The Employment Rate in Canada decreased to 61.60 percent in January from 61.70 percent in December of 2023. (Statistics Canada)
• The Unemployment Rate eased to 5.7 percent in January of 2024 from the 22-month high of 5.8% recorded in the previous month, defying market expectations of an increase to 5.9 percent, and marking the first monthly decrease in the unemployment rate in over one year. (Statistics Canada)
• Canada's economy added net 37,300 jobs in January, beating expectations, while the average hourly wage growth for permanent employees slowed to 5.3 percent in January from 5.7 percent in December. (Statistics Canada)
• Interest Rate: The Bank of Canada held the target for its overnight rate at 5 percent for the fourth consecutive decision in January 2024, as widely expected, leaving benchmark borrowing costs at a 22-year high.  (Bank of Canada)

• Employment Rate in the United States increased to 60.20 percent in January from 60.10 percent in December of 2023. (U.S. Bureau of Labor Statistics)
• The Unemployment Rate in the United States held at 3.7 percent in January 2024, unchanged from the previous month and slightly below the market consensus of 3.8 percent. (U.S. Bureau of Labor Statistics)
• Interest Rate: The Federal Reserve kept the Fed funds rate unchanged at a 23-year high of 5.25 percent - 5.5 percent for a fourth consecutive meeting in January 2024, in line with expectations. (Federal Reserve Board)

Workforce Trend

A TD Bank economist predicts Canada’s labour market will cool this year but perform better than it has in previous downturns, with strong population growth temporarily meeting high labour demands.

More than 15 percent of immigrants leave Canada within 20 years of admission to return to their country of origin or to move to another country, according to a new Statistics Canada report, which also highlights the difficulties some immigrants might face in Canadian society.

About 75 percent of more than 4,100 participants in a set of 10 illness studies reviewed by University of Michigan researchers reported concealing illness in interpersonal interactions due to achievement-oriented and socially-oriented motivators, such as wanting to complete work projects or attend events.

According to a recent report, compensation remains the biggest concern affecting turnover, highlighting the importance of wellbeing in improving recruitment and retention. When employees feel fairly compensated, they are more likely to experience wellbeing – both physically and mentally.

While numerous employers have been very vocal about their desire to bring workers back into the office, remote work continues to rise, according to a recent report.

The demand for green skills is outpacing talent supply, with 70 percent of employers urgently recruiting or planning to recruit green talent, particularly those with sustainability skills in renewable energy, manufacturing, operations, and IT.

Diversity, Equity & Inclusion

Minister of Labour, Seamus O’Regan Jr., has launched Equi’Vision, a groundbreaking website that provides user-friendly, easily comparable data on workforce representation rates and pay gaps experienced by women, Indigenous peoples, persons with disabilities, and members of visible minorities in federally regulated private sector industries. Canada becomes the first country in the world to make this level of information publicly available.

A hospital in Toronto focuses on people with disabilities, providing dedicated work experience placements through its Employment Pathways initiative, emphasizing that people with disabilities can add a different dynamic to the organization, fostering diversity of thought and creating an inclusive environment where accessibility is not an issue.

Talent Market Update

BCE Inc. is selling off 45 of its 103 regional radio stations as it cuts9 percent of its workforce, roughly 4,800 jobs, including journalists and other workers at its Bell Media subsidiary.

Snap said it will lay off 10 percent of its workforce worldwide, around 500 employees, to “promote in-person collaboration.”

Okta, a U.S. access and identity management giant, has announced layoffs of approximately 400 employees, which accounts for7% of its global workforce. This decision comes almost exactly a year after Okta’s previous staff cuts.

Zoomhas cut 150 jobs, which amounts to2% of its workforce, as investors push for efficiency. The company also plans to continue hiring in areas like artificial intelligence, sales, and engineering.

Deutsche Bank is to cut 3,500 jobs, equivalent to just under 4% of its global workforce of about 90,000, making it the latest global lender to target employees as part of post-pandemic cost reductions, amid a drop in profits. The jobs affected will be back office roles.

The Office of the Comptroller of the Currency (OCC) imposed a$65 million fine on the Royal Bank of Canada’s American unit, City National Bank, over gaps in the lender's risk management and internal controls.

Google expects to incur$700 million in severance costs in Q1 2024. More than 1,000 roles were cut across various departments. CEO Sundar Pichai hints at further job cuts throughout the year to facilitate investment in the company's big priorities.