As the labour market slows down, the “job-hopping generation” is deciding to stay put.
What’s happening: New Stats Canada data shows that Canadians are changing jobs at the lowest rate seen since 2020, a sign the labour market is weakening, per The Globe and Mail.
- The seasonally adjusted job-changing rate in July was 0.4%, falling far below the pre-pandemic average of 0.7%, seen from 2016 to 2019.
Why it matters: Between a slowdown in new role postings and more competition between workers, people can't just hop from job to job like it's 2021 anymore, which means they also lose opportunities to negotiate the big pay bumps that are secured by hopping around.
Yes, but: Coming out of the pandemic, many Canadians found better, well-paying jobs, and some economists suggest it's simply too early for them to be looking for new opportunities.
Big picture: The job-changing rate is just one factor pointing towards a dwindling job market. Last month, the unemployment rate also climbed for a third consecutive month to 5.5%, a sign that the boom times for employees might be coming to an end.—LA