- Job vacancies in Canada decreased by 8.2% in the fourth quarter of 2022, marking the second consecutive quarterly decline.
- The number of job vacancies fell in 16 of 20 broad industrial sectors and decreased more for positions requiring a high school diploma or less.
- The average offered hourly wage rose by 8.5% year-over-year in the fourth quarter, partially due to a shift in the relative composition of job vacancies from lower- to higher-offered-wage occupations.
The total number of job vacancies in Canada decreased by 8.2% or 78,600 in Q4 2022, marking the second consecutive quarterly decline, according to a report by Statistics Canada. The job vacancy rate, which represents the proportion of total labour demand occupied by vacant positions, also fell for the second consecutive quarter from 5.4% in Q3 2022 to 4.9% in Q4 2022. This decline is a result of the decrease in job vacancies combined with an increase in payroll employment.
The decline in Job Vacancies Across Broad Industrial Sectors
In Q4 2022, job vacancies declined in 16 of 20 broad industrial sectors, particularly in accommodation and food services (-21,400) and administrative and support, waste management, and remediation services (-15,800). Health and social assistance saw a decline of 2.5% (-3,700) to 147,300 in job vacancies after reaching a record high in Q3 2022. The only sector to see an increase was educational services with 3,200 vacancies, a 14.0% increase from Q3 2022.
Job Vacancies Decline Across Broad Occupational Groups
Job vacancies decreased in 7 of the 10 broad occupational groups in Q4 2022. The largest decreases in job vacancies were in trades, transport, and equipment operators and related occupations (-22,200 to 155,600), sales and service occupations (-20,100 to 280,600), and natural and applied sciences and related occupations (-11,000 to 58,300). However, health occupations, management occupations, and occupations in art, culture, recreation, and sport showed little change.
The decline in Job Vacancies Across Provinces
Ontario (-31,000), Quebec (-24,000), and British Columbia (-19,300) experienced the largest declines in job vacancies. In contrast, job vacancies rose in Saskatchewan (+1,700) in Q4 2022.
Job Vacancies Decline More for High School Diploma Positions
Job vacancies decreased by 17.8% for positions that require a high school diploma or less, whereas job vacancies requiring a bachelor’s degree or higher declined by 2.9%. Consequently, the proportion of job vacancies in Q4 2022 that required a post-secondary education increased.
Offered Hourly Wage Increases
The average hourly wage increased by 8.5% or $1.95 on a year-over-year basis in Q4 2022, partially due to a shift in the composition of job vacancies from lower- to higher-wage occupations.
Payroll Employment Increases
Payroll employment increased by 0.9% or 144,400 in Q4 2022, the seventh consecutive quarterly increase. The unemployment rate remained at 5.1%, which was little changed from the third quarter and just above the record low of 4.9% reached in June and July 2022. Employment continued to increase in 2023 with strong growth in January (+150,000; +0.8%) followed by little change in February (+22,000; +0.1%).
|Job vacancies decrease||8.2% or 78,600 in Q4 2022|
|Job vacancy rate||4.9% in Q4 2022|
|Decline in job vacancies across broad industrial sectors||16 out of 20|
|Decrease in job vacancies across broad occupational groups||7 out of 10|
|Provinces with the largest declines in job vacancies||Ontario (-31,000), Quebec (-24,000), British Columbia (-19,300)|
|Decline in job vacancies for high school diploma positions||17.8%|
|Increase in offered hourly wage||8.5% or $1.95 on a year-over-year basis in Q4 2022|
|Increase in payroll employment||0.9% or 144,400 in Q4 2022|
|Unemployment rate||5.1% in Q4 2022|
The second consecutive quarterly decline in job vacancies in Q4 2022 is largely due to the decrease in job vacancies in the accommodation and food services and administrative and support, waste management, and remediation services sectors. The increase in the proportion of job vacancies requiring post-secondary education and the increase in the average hourly wage are two important takeaways from the report. Meanwhile, payroll employment has continued to increase for the seventh consecutive quarter, and the unemployment rate remained steady.