The Canadian labour market remains tighter than it was before the COVID-19 pandemic

The Canadian job market experienced a slight decline in the second quarter of 2023, but it is still relatively tighter than pre-COVID levels, as reported by Statistics Canada. Job vacancies decreased, while the number of unemployed persons increased by 44,300. The unemployment-to-job vacancy ratio increased to 1.4, from 1.3 in the previous quarter to 1.1 in the second quarter of 2022. Despite this softening, the proportion remains below pre-pandemic levels, typically above 2.0. Wage growth also decelerated, with average hourly wages increasing by 4.4% year-over-year in the second quarter, compared to 5% in the previous quarter.