The media is selling the narrative that a “Great Resignation” is taking place. However, many job seekers are having difficulty getting hired.
Here are a few reasons why
COVID caused significant economic damage.
Yes, pandemic restrictions are being lifted, and, for better or worse, we’re moving back to our 1st world lifestyle. However, the pandemic isn’t officially over, and nobody knows when it will be. Small businesses, those that survived, have been severely damaged by COVID, leaving many in a precarious position. According to the latest Canadian Federation of Independent Business (CFIB) Small Business Recovery Dashboard, only 40% of businesses have returned to normal sales.
Many employers are struggling and therefore can’t afford to backfill vacancies. Instead, they’re increasing the workload of their existing employees and/or cutting back business hours.
Layoffs are happening.
The number of layoffs since the start of the year has been alarming. Some of the layoffs that made headlines:
- Netflix (150 employees)
- Canopy Growth (250 employees)
- Noom (495 employees)
- Zillow (2,300 employees)
- Carvana (2,500 employees)
- Peloton (over 2,800 employees)
- Better.com ( approx. 4,000 employees)
The hot job market is cooling down. This post-pandemic reset, caused by employers having overhired, a bear market, business growth slowing (With inflation hovering around 8%, consumers are spending less.), and higher labour costs, feels like a reckoning.
The “Great Resignation” is morphing into the “Great Termination.”
There’s talk of a looming recession.
“We will get a major recession.” – Deutsche Bank Economists, in a report to clients on April 26.
Employers, who, for the most part, are risk-averse, become nervous just hearing of a possible recession. Fear causes employers to slow, if not freeze, their hiring.
There is intense competition for desirable jobs.
It’s raining resumes, especially for desirable jobs at desirable employers.
The jobs people quit, they quit for a reason—poor working conditions, low pay, and bad management. These are the jobs that are going unfilled. My neighbourhood bar & grill has yet to open despite the lifting of pandemic restrictions months ago because they can’t find staff.
Finding a job isn’t difficult if you view work as a means to an end—you’re just looking for a paycheque. However, most job seekers are searching for jobs that offer fair compensation (extremely subjective), comprehensive benefits, the flexibility to work where and when they want to, and a manager who’ll take an interest in cultivating, developing, and growing their skillset. Finding a job that ticks off all your “wants” and “nice to haves” is difficult even in the best of times.
If you’re having trouble finding a job, re-evaluate which of your criteria are non-negotiable and which you can be flexible on. You may have to admit that you lack the required skills, experience, or connections (Knowing the right people opens doors.) to land your dream job at your employer of choice and need to work on acquiring them.
Employers aren’t in a rush to fill vacancies.
Despite media reports of a labour shortage, employers are being selective when hiring, perhaps even more so in the current uncertain economic climate. As I’ve mentioned in previous columns: Employers own their hiring processes. (and the results of) Just because how an employer hires doesn’t serve the job seeker’s self-interest doesn’t mean it doesn’t serve the employer’s.
Onboarding a new employee is a lengthy, costly process, fraught with risks, especially with the current unstable economy. A bad hire can quickly become a liability.
Businesses are operating with fewer employees.
You’ve seen this: A colleague leaves and the work continues to get done!
Want to gauge your value to your employer? Ask yourself this uncomfortable question: What would happen to my employer if I left tomorrow? I’ve yet to meet an employee who can answer: My employer will go out of business.
Employers have many options for running their business with fewer employees: AI, robotics, self-checkout, automation, using contractors/freelancers, and outsourcing, to name a few. Furthermore, companies are restructuring responsibilities and redistributing work instead of backfilling.
There aren’t many “great jobs” out there, and the number is declining; therefore, it’s a tough job market for “great jobs.” Don’t let all the Great Resignation talk lull you into believing employers, especially those everyone wants to work for, are begging for employees. Your job search still requires your A-game, which means:
- Have clearly defined career objectives.
- Make networking a habit.
- Optimize your LinkedIn profile.
- Communicate your achievements over your responsibilities. (Use numbers to show how you provided value to your employers.)
Nick Kossovan, a well-seasoned veteran of the corporate landscape, offers advice on searching for a job. You can send Nick your questions at email@example.com.
Travel delays: Canadian airlines, airports top global list – CTV News
Canadian airlines and airports claimed top spots in flight delays over the July long weekend, notching more than nearly any other around the world.
Air Canada ranked No. 1 in delays on Saturday and Sunday that affected 700-plus trips in total, or about two-thirds of its flights, according to tracking service FlightAware. It was more than 14 percentage points above the three carriers tied for second place.
Jazz Aviation – a Halifax-based company that provides regional service for Air Canada – and the lower-cost Air Canada Rouge both saw 53 per cent of flights delayed, putting them in the No. 2 spot alongside Greek regional airline Olympic Air.
On Saturday, WestJet and budget subsidiary Swoop placed third and fourth at 55 per cent.
On the airport front, Toronto’s Pearson claimed the No. 2 spot Sunday after 53 per cent of departures were held up, below only Guangzhou’s main airport in China. Pearson beat out Charles de Gaulle airport in Paris and Frankfurt Airport in Germany.
Montreal’s airport placed sixth Sunday at 43 per cent of takeoffs delayed, on par with London’s Heathrow, according to FlightAware figures.
Air Canada said last week it will cut more than 15 per cent of its summer schedule, nearly 10,000 flights in July and August, as the country’s aviation network sags under an overwhelming travel resurgence.
Bookended by statutory holidays in Canada and the U.S., the weekend saw scenes of long lines and luggage labyrinths flood social media as airports across the globe grappled with the start of peak travel season following two years of pent-up demand.
Passenger flow at Canadian airports is already at 2019 levels during peak times, though closer to 80 per cent of pre-pandemic volumes overall, experts say.
“This is going to be with us all summer,” said Helane Becker, an airline analyst for investment firm Cowen.
“Almost every airline encouraged people to retire early or take leaves. And those people that retired early maybe don’t want to come back to work,” she saidof airline employees.
“It’s hard to rebuild off those lows.”
Some pilots have not yet had their licences renewed, while positions with groundcrews and baggage handling remain unfilled – or quickly vacated – due to low wages and stressful work conditions, unions say.
Government agencies have been on a hiring spree for airport security and customs, with 900-plus new security screeners in place since April – though not all have clearance to work the scanners – according to the federal Transport Department.
“The airlines also used the pandemic to eliminate aircraft types from their fleet, and to ground and retire their oldest aircraft. It’s hard to bring these aircraft back once you park them without doing a lot of maintenance,” Becker added.
“As demand continues to surge, we’re basically looking at an inability for the airlines to easily accommodate it. And I think that’s true worldwide.”
This report by The Canadian Press was first published July 4, 2022
High inflation likely to stick around, consumers and businesses tell Bank of Canada in 2 surveys – CBC News
Canadian businesses and consumers think the current era of high inflation will persist for longer than they’d previously hoped, according to two surveys from the Bank of Canada released Monday.
The two reports — known as the Business Outlook Survey and the Canadian Survey of Consumer Expectations — are the result of the central bank’s quarterly polling of Canadian businesses and consumers for their outlook on what’s happening on the ground in Canada’s economy.
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While the findings differed in a few ways, the dominant theme of both was inflation and the impact it is having on buying and selling, hiring and firing.
The main takeaway from the business survey was that most businesses are seeing higher sales than they were seeing earlier in the pandemic, as economic activity is returning to some sort of normal. But demand continues to outstrip supply across almost all types of businesses, which is both a factor of and a contributor to the high inflation currently plaguing the economy.
Nearly two-thirds of businesses told the central bank they are seeing labour shortages. Nearly half — 43 per cent — say they are experiencing bottlenecks in their supply chains, and they’re taking longer to resolve than previously anticipated.
Businesses expect Canada’s inflation rate to still be more than five per cent a year from now, and still more than four per cent two years out. But five years from now, the survey suggests they expect the inflation rate to come back to within the range the central bank targets, between one and three per cent.
It was a similar story on the consumer side. Long-term inflation expectations increased from 3.2 per cent to four per cent, while short-term expectations increased to 6.8 per cent, up from 5.1 per cent last quarter.
“Consumers clearly took notice of the recent [consumer price index] releases and the high prices for food and gasoline,” CIBC economists Andrew Grantham and Karyne Charbonneau said of the data. “Uncertainty around the evolution of inflation has increased.”
Wages set to increase
On the employment front, on average, business owners expect their labour costs to increase by 5.8 per cent this year.
That’s significantly higher than the two per cent wage increases that consumers told the bank they were expecting.
“Workers do not anticipate their wage gains will keep up with inflation,” the bank said, adding that those in the private sector think their wages will increase this year by more than those in the public sector will.
Economist Leslie Preston with TD Bank said the survey shows just how big a concern inflation is in the minds of ordinary consumers.
“This survey suggests consumer spending in real terms is likely to slow in the coming months as wages can’t keep up with inflation, and households are already being forced to economize,” she said, adding that expectations of high inflation to come “is a source of concern for low-income consumers in particular, who are adjusting to high inflation by cutting spending, postponing major purchases, looking for discounts more often, and buying more affordable items.”
Canadian retailers struggle with online shipping costs as fuel surcharges soar – Global News
Canadian retailers are struggling with higher shipping costs as couriers tack hefty fuel surcharges onto shipping rates to recoup record gas prices.
The additional charge is sending the cost of shipping goods within Canada higher, topping 40 per cent for some carriers.
For stores with high online return rates, such as apparel and footwear companies, the increased cost of shipping can be especially challenging.
So far, most companies are trying to absorb the extra domestic shipping charges, Retail Council of Canada spokeswoman Michelle Wasylyshen said.
With inflation squeezing consumers and an ongoing battle for online dollars, she said retailers are reluctant to pass on costs.
“Retail is one of the most competitive industries in Canada, so raising minimum free shipping thresholds or adding surcharges to consumers directly is often done as a last resort,” she said.
“Retailers would prefer to find savings elsewhere.”
Higher domestic shipping costs come as international freight costs finally begin to stabilize.
Retailers have basically traded more reasonable international container freight rates for higher shipping within Canada, experts say.
“The idea of ever being in equilibrium around fuel prices or containers or what’s happening with worldwide supply chains is long gone,” Indigo Books & Music Inc. president Peter Ruis said in an interview.
Indigo, which saw online sales soar during the pandemic, is also avoiding raising prices despite skyrocketing shipping rates.
“We’re absolutely clear that especially at the moment with inflation and how customers are feeling … we will not want to be raising prices,” Ruis said.
Instead, the company is focused on developing the ability to ship from local stores, rather than from a centralized warehouse, to cut down on shipping costs.
“In October we launch our new website which will have a ship from store facility, which means we can use all of our stores as a warehouse for the online consumer,” Ruis said. “If someone’s in Halifax, we could choose to send them product from the Halifax store rather than from the central (distribution centre) in Toronto or Calgary.”
He added: “In a situation where the fuel charges are really difficult, we can mitigate that by sending stock locally.”
Tips to conserve gas
Apparel retailers, which often see the highest return volumes among retailers, also appear determined to avoid passing fuel surcharges on.
Canadian underwear and apparel brand Knix Wear Inc., which does most of its sales online and offers free return shipping on most orders, said it doesn’t plan to change the qualifying threshold for free shipping.
“We know there are several external factors affecting shipping and costs but we do not want our customers to feel those impacts,” company spokeswoman Emily Scarlett said.
Shipping surcharges vary between different courier companies.
A FedEx spokesman said the shipping company manages fluctuations in fuel prices through “dynamic fuel surcharges.”
Fuel surcharges on shipments within Canada are subject to weekly adjustments based on a rounded average of the Canadian diesel retail price per litre, James Anderson said in an email.
For packages outside the country, the company bases its fuel surcharge on a rounded average of the U.S. Gulf Coast spot price for a gallon of kerosene-type jet fuel, he said.
The FedEx Express fuel surcharge is currently 41.50 per cent within Canada, and 26.50 per cent on international shipments.
DHL Express said it applies the fuel surcharge to offset fluctuations in fuel prices, which can impact the cost of transportation services _particularly for the company’s aviation fleet.
The fuel surcharge for international shipments is set at 25 per cent for July 2022, according to the company’s website.
Canada Post’s fuel surcharge on domestic services is currently 37 per cent, while its international parcel service is 21.75 per cent, according to its website.
© 2022 The Canadian Press
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