Positive employment outlook for Quebec

Hiring to rise though wage increases less optimistic: Survey
|hrreporter.com|Last Updated: 07/26/2011

The employment outlook should continue to be positive for Quebec workers over the next few months, according to a survey by the Ordre des conseillers en ressources humaines agréés (CRHA).

Hiring should continue to rise over the summer, found the quarterly survey, conducted in collaboration with economic, financial and strategy consultants Analysis Group. Forty per cent of the 346 HR professionals surveyed expect employee numbers to increase in the next three months, versus only three per cent who think they will decline. This net difference amounts to 37.2 per cent or three percentage points more than the previous quarter (34.2 per cent).

Expectations are lower in the regions, particularly in Quebec City (up 21 per cent) and Montérégie (up 33 per cent), versus 46 per cent in Montreal, found Flash-Emploi CRHA.

Overall, 39.1 per cent of respondents believe they will have to step up their recruitment efforts, compared to 56.7 per cent in the last quarter.

"This decrease can be explained by a number of seasonal factors such as the greater availability of students, production slowdowns in some organizations and the fact that businesses are generally less inclined to create new jobs in the summer months," said Florent Francoeur, Ordre president and CEO.

However, the outlook for wage increases is less optimistic. HR advisors noted a sharp rise in the inflation rate and are, accordingly, cautious about economic growth. Some 13.1 per cent of those interviewed anticipate pay increases will be higher than inflation in the coming year, versus 37.5 per cent who think they will be lower, creating a net difference of 24.4 per cent. This equals a difference of 46.4 percentage points compared to the last quarter.

"In general, companies hesitate to change their pay scales to adjust to inflation. If inflation stays as high in the coming months, workers' buying power could be affected," said Francoeur.

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