Canadian businesses to keep hiring despite recession fears, survey finds

Despite bracing for a possible recession, new data from the Bank of Canada finds that most employers are looking to increase their headcount over the next 12 months.

According to the central bank’s third quarter Business Outlook Survey, companies intend to keep growing, but are having trouble finding skilled workers.

Many firms are also expecting slower sales growth amid rising interest rates and cooling demand.

Recession on the horizon

The survey, conducted between Aug. 15 and Sept. 9, was released days after the Royal Bank of Canada (RBC) claimed that the country could face another recession as early as the first quarter of 2023.

In a note to clients on Oct. 12, RBC economists Nathan Janzen and Claire Fan said “cracks are forming in Canada’s economy.”

“Housing markets have cooled sharply. Central banks are in the midst of one of the most aggressive rate-hiking cycles in history,” the pair wrote. “And while labour markets remain strong, employment is down by 92,000 over the last four months.”

In July, RBC initially predicted that the Canadian economy would be hit with a “moderate” and “short-lived” recession sometime in 2023.

However, Janzen and Fan added that rising interest rates by the Bank of Canada and the U.S. Federal Reserve are expected to “hasten the arrival of a recession in Canada.”

SEE ALSO
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• Layoffs in Canada (2022)

Starting a new job? Review your employment contract carefully

Recession or not, employment contracts often take away key protections that would otherwise be available to you.

Your company might attempt to limit your severance package to a few weeks’ pay, or add a clause that gives them the ability to put you on a layoff without penalty in the future.

LEARN MORE
• How an employment contract could limit your rights
• ’60 days or more’: Is it an enforceable termination clause?

WATCH: Employment lawyer Lior Samfiru explains the five things workers need to know about employment contracts on an episode of the Employment Law Show.

Before signing a new employment contract, give yourself time to properly go through it. Employers can’t legally force you to accept the agreement immediately.

If you are unsure about something in the contract, have an experienced employment lawyer at Samfiru Tumarkin LLP review the agreement. We can ensure that your workplace rights are protected.

Can my employer make changes to my job in a recession?

Non-unionized employees in Canada don’t have to accept major changes to their job because of a recession.

Large modifications such as a demotion, cut in pay, reduction in hours, or negative change to commission are illegal.

When the terms of your employment are significantly changed, the law allows you to resign from your job and seek full severance pay through a constructive dismissal claim.

READ MORE
• Ontario and changes to your job
• Changes to your employment in Alberta
• Can your employer change your job in B.C.
• Do I get severance if I quit?

Am I entitled to severance pay in a recession?

Yes. If you are fired or lose your job during, or due to, a recession, you are entitled to full severance pay.

Challenging economic conditions don’t excuse employers in Canada from providing staff with the compensation they are owed.

LEARN MORE
• Severance pay in a recession: Know your rights
• How to calculate severance pay
• Can I get my job back if I am fired?

Lost your job? Speak with an employment lawyer

If you are fired or lose your job for any reason, contact the experienced employment law team at Samfiru Tumarkin LLP.

Our lawyers in Toronto, Ottawa, Calgary, and Vancouver have helped tens of thousands of individuals across Canada resolve their workplace issues.

We can review your situation, enforce your rights, and ensure that you receive the compensation you are owed.