The higher unemployment rate in Canada

Canada’s unemployment rate rose significantly to 6.1% in March, according to new data from Statistics Canada. This represents a sharp increase from the 5.5% rate recorded in February.

While overall employment was little changed, declining by only 2,200 jobs last month, the large jump in unemployment shows that many more Canadians are now actively seeking work. The number of unemployed climbed to 1.3 million, an increase of nearly 250,000 compared to March 2021.

The lower unemployment rate in USA

The US labor market continues to show strong growth in March, with non-farm payrolls increasing by 303,000 positions. This marks the largest monthly jobs gain since January 2023, according to the Bureau of Labor Statistics.

Year-to-date job growth of 274,000 per month significantly outpaces the pre-pandemic 2019 monthly average of 171,000. Beyond payrolls, the unemployment rate fell to 3.8% in March, maintaining historically low levels not seen in over 50 years.

Tapping Top talent when unemployment rate is higher

With an oversupply of job seekers, regular full-time hiring may be challenging due to competition. Companies can quickly ramp up specialty expertise and capacity through independent contractors, consultancies, or freelancers to meet seasonal demands or staffing gaps.

There are several strategies may be applied:

1. Applications: Streamlined process with quick turnaround. Screen on potential not just experience. Hire for attitude, train skills.
2. Interviews: Focus on cultural, behavioral fit. Sell mission, benefits clearly. Speed up offer process.
3. Compensation: Research market appropriately. Offer competitive salaries, bonuses upfront. PayInOne could provide management for competitive salaries and bonuses by accessing our product EOR or payroll.
4. Contractor model: Manage and hire candidates on a more convenient way.

Tapping Top talent when unemployment rate is lower

With fewer job seekers and more opportunities, attrition is higher and passive candidates are rarer. Regular full-time hiring becomes a lengthier process, and scaling human capital up and down is tougher based on changes in business volume.

There are several strategies may be applied:

1. Passive candidates: Reach out directly with targeted opportunity messages.
2. Interviews: Rigorous fit assessments for both culture and skills/experience.
3. Onboarding: Strong focus on employee experience, fast ramp-up support. PayInOne provide a professional and fast way to onboard employee through our EOR service.
4. Retention: Benchmark compensation regularly. Focus on culture, growth opportunities.