For Ottawa’s labour market, 2024 will be the year of compromise as the balance of power starts to swing back to employers, according to James Baker, CEO and co-founder of Keynote Group.
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For Ottawa’s labour market, 2024 will be the year of compromise as the balance of power starts to swing back to employers, according to James Baker, CEO and co-founder of Keynote Group.
The past few years have been a jobseekers’ market in Ottawa and much of the rest of Canada. Baker said last year started to see some equilibrium.
“Overall last year, we started to see the return to a balance between what the candidate employee was looking for versus the employer,” he said. “It was the first real time of balance on the employment market, where it was almost give-and-take. If you were looking for a job, you might concede on a few points and the employer may consider a few points to come to a compromise.”
Last year was tumultuous for both employers and job seekers in Ottawa, according to Baker. While the federal government grew its headcount, the private sector started to contract. In the latter half of the year, Baker said employers were increasingly concerned with the cost of goods and services, while facing challenges gaining access to capital.
With cost concerns top of mind, businesses are now streamlining their teams, scaling back positions, and taking a more strategic approach to hiring. For employers, it means more flexibility and more bang for their buck.
“On the employer's side, that means they can get a little more value for that role than they did previously,” said Baker.
But a scale-back in hiring means fewer positions and a higher barrier to entry for job seekers.
With a continued influx of new residents to the city, more redundancies, and decreased seasonal hiring, job seekers are in for a challenge. Baker said he expects unemployment to rise to seven per cent in 2024.
“If you’re applying to a position, there’s more competition for that job than there was two years ago,” he said. “More people are looking for work. Posted jobs are getting more applicants but also the volume of posted jobs is decreasing.”
As a result, Baker said 2024 may be the year of compromise for the labour market.
“Businesses need to do what they need to do to survive and prosper and grow, but it has to be done in a balance with the employment market,” said Baker. “I think everybody needs to be prepared to compromise and be open to suggestions and ideas to make it work for everybody.”
