The Canadian labor market is expected to experience significant growth in 2023, with projections indicating approximately 2.8 million new job openings resulting from increased economic activity.
As a valuable resource for employers, job seekers, researchers, and policymakers, the National Occupational Classification (NOC) system provides insights into the evolving job market.
In this article, we’ll delve deeper into the sectors projected to grow according to the Canadian Occupational Projection System (COPS) and highlight the inflows and outflows of the labor market for the period 2022-2031.
Part I: A Closer Look at the Sectors Projected to Grow in 2023
The COPS report predicts substantial growth in various sectors of the Canadian economy in 2023. In this section, we’ll examine each of the top 10 sectors expected to experience significant job creation and provide ample opportunities for job seekers, fueling the Canadian labor market’s growth.
1. Health care and social assistance
With an aging population and increased demand for health services, the health care and social assistance sector is projected to see significant growth. This growth will create numerous job opportunities for medical professionals, including doctors, nurses, and allied health practitioners, as well as administrative and support staff in hospitals, clinics, and other care facilities.
2. Professional, scientific, and technical services
The professional, scientific, and technical services sector encompasses a wide range of occupations, including engineers, architects, scientists, and IT professionals. As technology continues to advance and businesses increasingly rely on these services, job opportunities in this sector are expected to grow rapidly.
3. Educational services
The educational services sector is anticipated to expand as the demand for skilled workers increases, and the population seeks higher levels of education. Job openings will be available for teachers, administrators, and support staff in primary, secondary, and post-secondary institutions.
4. Public administration
Public administration plays a crucial role in maintaining the efficient functioning of government and public services. This sector is expected to experience growth as governments at various levels seek to improve services and respond to the evolving needs of the population. Job opportunities will be available in areas such as policy development, administration, and management.
Manufacturing remains a critical component of the Canadian economy, and the sector is projected to grow in response to increased domestic and international demand for goods. Job openings will be available across various sub-sectors, including aerospace, automotive, food processing, and electronics.
The construction sector is expected to grow due to increased investment in infrastructure projects and residential developments. Job opportunities will be available for skilled tradespeople, laborers, and project managers, among other positions.
7. Wholesale and retail trade
As consumer spending continues to rise, the wholesale and retail trade sector is anticipated to grow. Job openings will be available in various roles, including sales representatives, store managers, and purchasing agents.
8. Transportation and warehousing
With the expansion of e-commerce and global trade, the transportation and warehousing sector is projected to grow. Job opportunities will be available in roles such as truck drivers, logistics specialists, and warehouse workers.
9. Finance, insurance, real estate, rental, and leasing
The finance, insurance, real estate, rental, and leasing sector plays a vital role in the Canadian economy. As the market continues to expand, job opportunities will be available in areas such as financial planning, insurance underwriting, and property management.
10. Information, culture, and recreation
The information, culture, and recreation sector is expected to grow as the demand for digital content, entertainment, and cultural experiences increases. Job openings will be available in roles such as software developers, graphic designers, and event planners.
Part II: Projected Inflows and Outflows of the Labour Market, 2022-2031
According to the COPS report, the labor market is expected to see considerable fluctuations in inflows and outflows over the next decade. The key projections include:
- Approximately 6.7 million job openings are expected in total, with 2.8 million being new positions resulting from economic growth and 3.9 million openings due to retirements and other exits.
- Around 6.6 million job seekers are expected to enter the labor market, with the majority (5.6 million) being new labor force entrants, while the remaining 1 million are projected to be individuals seeking employment after being laid off.
- A potential labor shortage could arise if the number of job seekers does not meet the number of job openings. In such a scenario, employers may need to explore alternative recruitment strategies or adjust their expectations.
Part III: Preparing for the Future Labour Market
As the Canadian labor market evolves, it is essential for employers, job seekers, and policymakers to stay informed and adapt to the changing landscape. Here are some recommendations to prepare for the future labor market:
- Embrace lifelong learning: Continuous learning and upskilling will be crucial for both employers and job seekers to stay competitive in the rapidly changing job market. Employers should invest in employee training programs, and job seekers should seek opportunities to develop new skills.
- Focus on soft skills: As automation and AI become more prevalent, soft skills such as communication, teamwork, and problem-solving will become increasingly valuable. Employers should prioritize these skills when hiring, and job seekers should work on developing and showcasing their soft skills.
- Promote diversity and inclusion: A diverse and inclusive workforce leads to better decision-making and innovation. Employers should implement diversity and inclusion initiatives to attract and retain talent, while job seekers should seek out employers who value diversity and inclusion.
- Invest in technology: Employers should invest in the latest technologies to increase efficiency and remain competitive. Job seekers should stay informed about emerging technologies and consider how they can be applied in their current or future roles.
The Canadian labor market is poised for significant growth in 2023 and beyond, with a projected 2.8 million new job openings resulting from increased economic activity. Employers and job seekers must stay informed about the sectors projected to grow and the potential inflows and outflows of the labor market to navigate the evolving landscape successfully.