Deborah Baic/The Globe and Mail
Confidence about hiring has jumped to a two-year high as Canadian employers trust the recovery is taking root.
Hiring intentions for the July-September period are the most positive since 2008, led by expansion plans in mining and construction, Manpower Canada's quarterly survey to be released Tuesday shows. About a fifth, or 22 per cent, of employers plans to add staff in the next quarter; 6 per cent see a decrease; and 69 per cent anticipate no change.
The report comes amid a recovery in Canada's jobs market. The economy created 24,700 jobs in May, on top of the record 108,700 positions that were created in April, Statistics Canada said last week. Still, the jobless rate remains at 8.1 per cent as more people rejoin the labour market in search of work.
On the hiring front, "things are definitely getting better, though we're not where we used to be a couple of years ago," said Lori Rogers, vice-president of staffing services at Manpower Canada.
The staffing agency itself is seeing business pick up, with more companies wanting help filling positions, and more people landing both temporary and full-time jobs since the start of the year, she added.
Employment services tend to be one of the first sectors to cut jobs during a downturn as opportunities fade. They also tend to be one of the first to bounce back, making them a leading indicator for hiring trends.
Indeed, the employment services sector created the most amount of jobs in Canada in the first quarter of the year, Statscan's payrolls data show.
In the coming quarter, mining and construction are the rosiest about hiring plans on a seasonally-adjusted basis, Manpower's survey of 1,900 employers said. Retail trade and durable manufacturing are also fairly upbeat.
Atlantic Canada is the most confident region, led by Fredericton, St. John's, Moncton and Charlottetown. Infrastructure spending on bridges, roads and college campuses are bolstering hiring in Fredericton, while a new casino is spurring job creation in Moncton, said Mindy Stoltz, the staffing agency's branch manager for the province.
"Employers are feeling more positive. But they're still cautious, hiring only what they need," she said.
By contrast, employers in Ontario and Quebec are more reticent about hiring, particularly in Montreal and London, Ont.
The current pace of hiring may not last as both the U.S. and Canadian economies are expected to slow later this year, Manpower and many economists caution.
Where the jobs are
In the third quarter
1. Mining
2. Construction
3. Wholesale and retail trade
4. Manufacturing - durables
5. Finance, insurance and real estate
Source: Manpower Canada's third-quarter outlook, seasonally adjusted.
In the first quarter
1. Employment services
2. Federal and provincial public admin. (such as tax collectors)
3. Primary metal manufacturing
4. Specialty trade contractor
5. Construction of buildings
Followed by hiring in air transportation, engineering, universities and other manufacturing sectors
Source: Statistics Canada payrolls data, Jan-March.
Tavia Grant