Despite lingering economic uncertainty, Canadians are more optimistic about their company's hiring plans and growth prospects than they were this time last year, according to the annual BMO Labour Day Survey.
The BMO report found that 41 per cent of Canadians believe their company is growing and expect it will be hiring this year. Almost two-thirds are comfortable with their job security (up 13 percentage points from 2011), and four-in-ten expect to receive a raise or promotion this year (up 11 percentage points from 2011). Only 22 per cent expect their company will be laying off employees.
"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," said Cathy Pin, Vice-President, BMO Commercial Banking.
Employee Expectations for Hiring/Layoffs
Compared to 2011, the number of Canadians who feel their company is growing and will be hiring has increased by 13 percentage points. Albertans are the most optimistic; 60 per cent expect their employer to hire more employees this year. By contrast, Atlantic Canadians are the most likely to feel their company will lay off employees (28 per cent).
|Believe my company will begrowing and hiringmore employees||41||%||28||%||34||%||32||%||39||%||48||%||60||%||49||%|
|Believe my company will lay off employees this year||22||%||18||%||28||%||23||%||22||%||24||%||9||%||22||%|
According to BMO Economics, Canadian workers have it relatively good compared to their American and European counterparts, as the Canadian unemployment rate is one percentage point lower than in the U.S. and four percentage points lower than in the Eurozone. "Canadian job security is fairly good, with our 7.3 per cent unemployment rate below historic norms," said Sal Guatieri, Senior Economist, BMO Economics. "Canadians should expect wages to rise modestly faster than inflation, supporting household purchasing power, with the strongest gains in Alberta and Saskatchewan," added Mr. Guatieri.
Employee Comfort with Job Security
According to the survey, conducted by Pollara, 64 per cent of Canadians are comfortable with their overall job security - up 13 percentage points from 2011. In a separate question, one-in-four expressed concern over their job security (24 per cent). Canadians on the Prairies (Saskatchewan and Manitoba) are most comfortable (81 per cent), while workers in Quebec are the most concerned (29 per cent).
|Comfortable with overall job security||64||%||51||%||66||%||58||%||63||%||81||%||71||%||60||%|
|Currently concerned about overall job security||24||%||23||%||20||%||29||%||23||%||21||%||14||%||25||%|
Expectations of a Raise and/or Promotion
The survey also found that four-in-ten (39 per cent) Canadians expect to receive a raise or promotion in the next year, an increase of 11 percentage points from this time last year. By contrast, one-in-five (22 per cent) feel they are working in a 'dead-end' job and indicate that the company they work for is in no position to provide a promotion, raise, or year-end bonus. This number is virtually unchanged from 2011.
Workers in Alberta (55 per cent) and the Prairies (54 per cent) are most likely to expect a raise or promotion in the coming year.
|Expect a Promotion and/or Raise||39||%||28||%||37||%||35||%||37||%||54||%||55||%||36||%|
|Feel working in 'dead-end' job, company I work for is in no position to offer raise, promotion, or year-end bonus||22||%||21||%||22||%||19||%||24||%||24||%||16||%||28||%|
Survey was completed online from July 31 to August 3, 2012, by Pollara Strategic Insights, with a sample of 1,000 Canadians. A probability sample of the same size would yield a margin of error of +/-3.1 per cent 19 times out of 20.