Labour Demand Trends During the COVID-19 Pandemic

Labour Market Insights from the Diversity Institute, a new research series produced in partnership with the Future Skills Centre (external link)  and Magnet (external link) , recently launched with a new report and an enlightening panel discussion on labour demand trends during this challenging time.

“Labour Demand Trends During the COVID-19 Pandemic: Analysis of online job postings in Canada” discusses changes in total job postings and changes in job postings across geography, occupations, skills, and sectors in the pre-pandemic and pandemic periods by examining data extracted from the Vicinity Jobs Hiring Demand Analytics Suite.

Report author Sosina Bezu (Senior Research Associate, Diversity Institute) shared highlights from the research before joining a panel discussion with Austin Hracs (external link)  (Director of Research and Implementation, Magnet), Strac Ivanov (external link)  (President, Vicinity Jobs Inc), Tony Bonen (external link)  (Director of Research, Data & Analytics, Labour Market Information Council) and moderator Michael Urban (Acting Director of Research and Special Projects, Diversity Institute). Julia Rim Shepard (external link) , Director of Strategic Communications at the Future Skills Centre, opened the floor and led the audience Q&A following the panel.

The outbreak of COVID-19 has had an enormous impact on the labour market. Bezu noted that 600,000 fewer jobs were posted during the pandemic versus the same period in 2019—a drop of approximately 30%. The largest decline was seen in April 2020. While job postings in September began to approach pre-COVID levels when the pandemic seemed to be slowing, early data shows the trend line declining again more recently as the second wave of the virus spreads. The data shows that the 10 most common skills employers identify in job postings have remained the same during the pandemic compared to the same period last year but different skills are beginning to emerge across job postings beyond this list, including the ability to use PPE and maintain sanitary environments. More detailed analysis is required to identify the most relevant skills needed during the pandemic, Bezu noted, and as the post-pandemic future comes into view.

“More than ever there is a need for real-time and detailed labour market information so that we are able to make informed decisions. Policy makers, job seekers and other stakeholders need very nimble, fast information,” Bezu explained.

People want data that is also local and granular, Bonen explained as the event transitioned into the panel discussion. But there are significant limitations to existing data sets, including limited frequency and scope. Online job data that can be collected everyday across geographies, like that examined in this report, holds significant promise. While there are limitations to online job data as well, including its inability to capture jobs that may not be advertised online, it can prove transformational as a leading indicator when looked at alongside other data sets, like that provided by Statistics Canada or Employment and Social Development Canada (ESDC).

“This is all about connecting the dots between complementary data sources. None of them can complete the entire puzzle for us,” noted Hracs.

The pressing need for labour market information cannot be overstated—especially as many struggle with job losses or underemployment as a result of the pandemic. Ivanov sees considerable potential in online job data as a way to see early evidence about how the labour market is changing. For instance, this data may reveal how demand for skills or specific occupations is fluctuating, in addition to identifying the geographic distribution of vacancies and advertised jobs.

“It’s important to get as much information as possible, as early as possible, so we can help those people who have been affected the most get back into the labour force. Because we also know the longer someone has spent outside of the labour force, the more difficult it gets for them to re-enter it,” explained Ivanov.

For Bonen, the limits in quantitative data can be narrowed with qualitative information, like guidance and advice. “Giving the people the context by which to make more informed decisions is just as important, or even more important, that the data itself,” he said.

“There’s a lot of good data out there but it’s not in front of you when you need it,” Hracs added. At Magnet, they are working to extract insights from real-time labour market data to share with employers and job-seekers at the point at which it will be most useful, like when an individual is looking for a new job.

Watch the discussion on-demand (external link)  to hear more about the report and from our expert panelists.

“Labour Demand Trends During the COVID-19 Pandemic: Analysis of online job postings in Canada” is the first report in the Labour Market Insights from the Diversity Institute (opens in new window)  series. The series aims to provide timely analysis on current patterns of labour demand across Canadian regions, industries, and occupations.

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