Heading into 2022, everyone was hopeful about the state of the economy as vaccines were rolling out and everyone was ready to wave goodbye to COVID shutdowns that have lingered since 2020. Now that we only have one month remaining in 2022, let’s do a quick recap of the Canadian (and world) economy for the year:
- Inflation and interest rates have continued to go up
- Job losses due to layoffs led by the tech sector and business closures
- Market growth have continued to decelerate
This just wasn’t what people had expected with COVID behind us, lockdowns lifting, and the economy reopening. So what can we expect now as we shift our attention to 2023 and the year to come?
Economists from the Royal Bank of Canada expect the economy to enter a recession in the first quarter of 2023 due to sharply cooled housing markets, one of the most aggressive rate-hiking cycles in history, and rising unemployment rate to close off the year 2022. On the other hand, according to Canadian Finance Minister Chrystia Freeland, the economy would avoid a recession, but not without slashing 2023 real GDP forecast lower. The consensus is that the economy may still have a few bumps ahead in the upcoming months before things start to smooth out and get better as interest rates may continue to rise into 2023 to combat inflation before topping out and cuts begins.
But it’s not all dark and gloomy days ahead. According to a report from KPMG surveying more than 500 small and medium-sized business leaders in Canada:
- 83% are optimistic about their company’s growth over the next few years
- 82% are feeling confident about their industry or sector
- 78% are holding a healthy outlook for Canada’s future economic growth
- 73% are feeling more confident about their growth prospects than a year ago
- 77% are planning to increase headcount in the next three years to drive their growth plans
- 20% are expecting a hiring increase of at least 11 per cent
And according to a different report from Deloitte, Canada will enter a short-lived recession by the end of the year. With the current job market having been very tight and concerns surrounding ongoing labour shortages, unemployment will continue rising slightly higher into the third quarter of next year before falling again but might not rise as much as it typically would during a recession.
Now, what does all this mean for you if you’re in need of hiring strong talent for your team in 2023? Below are a few tips that can help you accomplish your talent goals in the new year:
- Keep a stronghold of the talent you already have (Talent Rearrangement)
- Be prepared to shift gears and keep up with the changes of the economy
- Stay ahead of your competition by reaching talent first and keeping pool full
- Make every hire count and make it fast
- Understand what the talent market is looking for and adapt to their priorities
- Stay strategic with your hiring for better long-term results
- Be attractive and promote your brand with Diversity, Equity & Inclusion continuing at the forefront
- Happiness and Wellbeing matter along with flexibility and remote work
Contact Us today to speak with one of our Recruitment Specialists and let us help you build your team with talent in the new year!
References:
https://www.ctvnews.ca/business/recession-expected-in-canada-in-early-2023-rbc-economists-1.6108255
https://home.kpmg/ca/en/home/media/press-releases/2022/10/smbs-have-big-growth-plans.html
https://globalnews.ca/news/9161370/deloitte-recession-call-2023-labour-shortage/
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