Casey McLaughlin, a former executive director at the Yukon Transportation Museum, recently found herself in a situation where she had to attend a job fair in Ottawa to secure a position at a new Food Basics grocery store. Despite her previous role, she expressed willingness to take on any job, even shelving vegetables, to make ends meet due to the challenging job market in Ottawa.
Nafisa Ijie, another attendee at the job fair, holds a master’s degree and has worked as a business analyst in Nigeria and England. She highlighted the struggles of finding employment in Canada without local work experience, emphasizing the importance of starting somewhere to gain a foothold in the job market.
Statistics Canada reported a rise in unemployment to 7.1% in August, the highest since May 2016, excluding pandemic-related peaks, indicating a challenging labor market scenario. Viet Vu, an economic research manager at The Dais, explained that while companies are not actively laying off employees, there is a reluctance to create new job opportunities due to trade uncertainties and market conditions.
Youth unemployment is particularly severe, with student unemployment reaching its highest level since 2009. Young individuals like Hasan Alhamid and Ryan Ismael expressed concerns about the tough job market, highlighting the competitive nature of job searches.
Vu stressed that during economic downturns, entry-level positions are often the first to disappear, impacting young individuals disproportionately. This situation can lead to long-term negative effects on earning potential, a phenomenon known as wage scarring.
Despite the challenges, job seekers flocked to the Food Basics job fair in hopes of securing one of the limited positions available. The company received hundreds of applications for just 125 positions, leaving many qualified candidates like McLaughlin without job offers. McLaughlin shared her experience of facing rejection despite her qualifications, emphasizing the need to prioritize financial stability over pride.
Looking ahead, Vu anticipated a continuation of the current economic trends with slightly elevated unemployment rates and subdued job creation. The upcoming labor statistics for September are expected to reflect the ongoing challenges in the job market.