In a report on Tuesday, StatsCan said Canadian employers were looking for 997,000 job openings in the second quarter, up 4.7 percent from the previous quarter and 42.3 percent more than in the second quarter of 2021.
Job vacancies increased in six provinces in the quarter, mainly due to the 6.6 increase in Ontario. Nova Scotia, British Columbia, Manitoba, Alberta and Quebec also saw rising job opportunities.
At the sector level, healthcare job openings remained high – little change from the previous quarter, but up 28.8 percent year-on-year. Service sector openings increased on a quarterly basis, with vacancies in the accommodation and hospitality sectors increasing 12.7 percent from the first quarter.
The rising vacancy rate is due to wages failing to keep up with inflation. According to StatsCan, average hourly wages rose 4.1 percent year-over-year in the second quarter, amid an average increase in consumer costs of 7.5 percent in the quarter.
That mismatch between wage increases and inflation comes amid the Bank of Canada urging employers and workers not to let price pressures unduly influence wage expectations, and warns that allowing earnings expectations to be loosened will lead to a ” wage-price spiral” that will fuel inflation.
The central bank says it remains determined to bring inflation back to its target of two percent, and that higher wages will make such a mission more difficult.