News
Canadians more optimistic about job security

Aug. 31, 2012, Toronto — 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 10 expect to receive a raise or promotion this year (up 11 per cent 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 of BMO Commercial Banking.

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, a senior economist with BMO Economics. "Canadians should expect wages to rise modestly faster than inflation, supporting household purchasing power, with the strongest gains in Alberta and Saskatchewan."

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 (24 per cent) expressed concern over their job security.

The survey also found that four in 10 Canadians (39 per cent) 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.