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Statistics Canada's latest Employment Situation Report shows that job vacancies are increasing sharply in the catering and accommodation industry.
This past June, there was a spike in job vacancies in accommodation and catering services in Canada. When restaurants began reopening in June, there were 129,100 vacancies in accommodation and food service establishments. This is even higher than the health care and social assistance industries, which had the highest number of vacancies last month. Canada's retail trade came in third.
A total of 815,800 jobs were posted in June, up 22% from May. It was also the month with the highest job vacancies since Statistics Canada began collecting data in May. 10, 2020.
Catering and accommodation services also have the highest employment rate of all industries when accounting for more than 12%. Employers are actively recruiting to fill vacancies as restaurants begin to open for al fresco dining starting at the end of May.
It shows that the labor shortage will continue to increase in the coming months. In 2020, workers quit their jobs, retire and switch jobs due to dissatisfaction during a period of economic uncertainty. In particular, many workers in the service sectors affected by the pandemic may have left their positions due to extended shutdowns.
Economist Carrie Freestone, the report's author, said high employment rates could drag on economic growth. Employees are now in a stronger bargaining position to negotiate higher wages and better benefits. In addition, a labor market shortage could put upward pressure on wages, leading to higher consumer prices.
Provinces with the highest levels of underemployment may face challenges in hiring lower-paying positions. Although wages in food and beverage services rose in June, it was still 57% lower than other service jobs. This could explain the increase in food service vacancies, and it could continue to affect the sector if workers choose to move to another industry.
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