Casey McLaughlin, formerly the executive director of the Yukon Transportation Museum in Whitehorse, recently found herself standing in line at a job fair in Ottawa along with numerous other job seekers. She expressed her willingness to transition from a managerial role to stocking vegetables at a new Food Basics grocery store due to the challenging job market in Ottawa.
Nafisa Ijie, who holds a master’s degree and has experience as a business analyst in Nigeria and England, also participated in the job fair despite facing difficulties in securing employment in Canada without local work experience. The unemployment rate in August rose to 7.1 percent, the highest since May 2016, according to Statistics Canada.
Viet Vu, the manager of economic research at The Dais, explained that while many companies are not laying off workers, the uncertain economic environment has led to a reluctance to create new job opportunities. As a result, events like the Food Basics job fair have become rare and appealing to job seekers, even those who may be overqualified for positions at a grocery store.
Youth unemployment has reached its highest levels since 2009, posing additional challenges for young individuals seeking employment. Hasan Alhamid and Ryan Ismael, two young job seekers, expressed their concerns about the competitive job market.
Vu highlighted that during economic downturns, entry-level positions are often the first to be affected, impacting young individuals the most. Research suggests that prolonged unemployment in a weak economy can have lasting negative effects on earning potential, known as wage scarring.
Food Basics received hundreds of applications for just 125 positions in Ottawa, leaving many applicants, including McLaughlin, without job offers. Despite her extensive experience and skills, McLaughlin faced rejection and is considering relocating to Western Canada in search of opportunities.
Vu emphasized that a short period of unemployment after a job loss is typical, but prolonged unemployment could raise concerns. He anticipates that the upcoming labor statistics for September will likely reflect the ongoing trend of reduced economic activity, elevated unemployment rates, and limited hiring opportunities.