Mr. Chair, committee members, thank you for inviting me to share some insights on the labour shortages and labour market imbalances affecting the Canadian economy since the pandemic, including in the care economy.
Most indicators are pointing to an increasingly tight labour market in Canada, with the demand for workers accelerating to record levels during the second half of 2021. Job vacancies in the fourth quarter rose 80% compared with pre-pandemic levels, reflecting broad based increases across provinces and industrial sectors.
Last month, the unemployment rate fell to a near historic low of 5.5% while the participation rate reached a record high among core-aged workers. These increasingly tight labour market conditions have resulted in lengthier hiring processes, as evidenced by a rise in the proportion of vacancies open for two months or more.
The unprecedented labour demand placed by COVID‑19 on the health care system contributed to the growth in vacancies in the health care and social assistance sector. There were almost twice as many job vacancies as two years earlier in the sector, despite a 6% rise in payroll employment.
With businesses struggling to recruit staff, some have been adjusting their hiring strategies. For example, some employers appear to be lowering educational requirements to attract workers. In late 2021, about 10% of workers who had a high school diploma or less had recently started jobs that typically require university education, up from 4% in late 2019.
To help attract and retain staff, businesses are also adjusting their wage plans. In the two years leading up to November 2021, wages among new hires rose by 10%, compared with 6% for established employees. In the fourth quarter of 2021, almost half of businesses reported that they planned to raise wages for existing employees over the coming year. While wages have been on an upward trend since the fall of 2021, their growth has remained below the inflation rate.
The COVID‑19 pandemic has underscored the essential nature of the care sector but also contributed to worsen already existing labour shortages. Census data show that in 2016, care workers made up nearly one-fifth of the total employed population in Canada. Perhaps not surprisingly, women represented the majority of paid care workers, accounting for three quarters of all care workers. Overall, workers in care and non-care occupations were as likely to belong to a population group designated as a visible minority. There were however slightly higher proportions of Black and Filipino people among care workers than among non-care workers, particularly in specific occupational groups. For example, Black and Filipino people each represented 10% of workers in assisting occupations in support of health services and were highly overrepresented among nurse aides, orderlies and patient service associates.
Labour Force Survey data suggest that in recent years workers in care occupations were less likely to have a permanent job than those in non-care occupations. They were also more likely to hold more than one job at the same time. Overall, workers in care occupations were slightly less likely to work full time than those in non-care occupations.
The quality of employment in the care economy is uneven, with workers covered by a collective agreement, which is 57%, generally having better working conditions than those who are not.
Statistics Canada will continue to monitor and report on labour demand pressures that are felt in the various sectors of the Canadian labour market, including those of the care economy.
Mr. Chair, this concludes my opening statement.
Thank you.