Canadians optimistic about job security

A new Labour Day survey conducted by Bank of Montreal finds Canadians to be optimistic about their job security, along with the likeliness of the company hiring more workers, their own growth prospects, and receiving a raise.

The poll found that 64 per cent of respondents felt comfortable with thier job security, while 41 per cent believe their company will be hiring again. Both of these numbers are up by 13 per cent since last year’s poll.

There was also an 11 per cent increase in respondents who felt they will receive a raise, at 39 per cent.

“Over the past year we have seen an increasing number of companies show a willingness to look at how they can grow their business through making strategic investments in upgrading technology and processes, opening up new markets, and investing in their people,” Cathy Pin, Vice-President of BMO Commercial Banking, said in a press release.

The most optimistic provinces were Manitoba and Saskatchewan at 81 per cent, followed by Alberta at 71 per cent, Atlantic Canada at 66 per cent, and Ontario at 63 per cent.

Business analysts are surprised at the results considering the unemployment rate remains stuck at 7.3 per cent. In July, employment fell by 30,400, the largest drop in nearly a year so there is little reason to think this uncertainty is going away any time soon.

While the economy has seen slow growth at below two per cent since the fall, Canadian workers are still considered better off than those in America and Europe as the Canadian unemployment rate is one point lower than the United States and four points lower than in Europe.

“Canadian job security is fairly good, with our 7.3 per cent unemployment rate below historic norms. Canadians should expect wages to rise modestly faster than inflation, supporting household purchasing power, with the strongest gains in Alberta and Saskatchewan,” BMO senior economist Sal Guatieri told CBC.

The survey was conducted on 1000 adult Canadians between July 31st and August 3rd, 2012.

The poll results fall in line with another report that claims Canadian salaries are expected to rise by 2.9 per cent, while those in the mining, oil and gas, and chemical fields will see an even larger increase at 3.9 per cent.

Lately, those in power have been urging companies to do the right thing for job security. Finance Minister Jim Flaherty has recently called on Canadian businesses to invest some $525-billion of dead cash back into the economy, and Bank of Canada governor Mark Carney has asked companies holding on to cash because of global economic instability to release it to their shareholders.

What do you think? Do you agree with the survey results? Let us know in the comments!

Sources: CBC, Digital Journal, Globe and Mail

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