FILE – A sign on a shop window indicates the store is closed in Ottawa, Monday March 23, 2020. Companies that have laid off workers are telling the Bank of Canada they plan to refill some positions over the next year, but many hiring plans remain muted over COVID-19-related uncertainty. THE CANADIAN PRESS/Adrian Wyld

FILE – A sign on a shop window indicates the store is closed in Ottawa, Monday March 23, 2020. Companies that have laid off workers are telling the Bank of Canada they plan to refill some positions over the next year, but many hiring plans remain muted over COVID-19-related uncertainty. THE CANADIAN PRESS/Adrian Wyld

Companies have modest hiring plans, low wage growth expectations, Bank of Canada says

The survey also finds that wage growth is widely expected to slow over the next year

The Bank of Canada says companies are hedging hiring plans and wage growth expectations in the coming months over heightened uncertainty from the COVID-19 pandemic.

The central bank’s business outlook survey finds hiring intentions remain below their historical averages, suggesting modest hiring plans even as the overall outlook on employment edges up.

Almost one-third of businesses told the bank they expect their workforce numbers to remain below pre-pandemic levels for at least the next 12 months, or to never fully recover.

The survey also finds that wage growth is widely expected to slow over the next year, mostly a result of the pandemic and ongoing uncertainty, with some firms reporting a wage freeze.

The bank also says that nearly half of firms surveyed used the federal wage subsidy program to avoid layoffs or quickly refill positions.

About 100 firms took part in the bank’s regular survey out this morning, but did so between late August and mid-September when COVID-19 case counts were still low.

READ MORE: B.C.’s post-pandemic economy to recover in 2022, economists say

The Canadian Press


Like us on Facebook and follow us on Twitter.

Want to support local journalism during the pandemic? Make a donation here.

Coronaviruseconomy

Just Posted

An economic recovery plan in progress since April offers various recommendations for the region to overcome the impacts of COVID-19. (Nina Grossman/News Staff)
Greater Victoria economic ‘reboot’ plan tackles impacts of COVID-19

Newly-formed task force looks at various sectors, industries

The back seat of a car with four bags of Christmas gifts and decor. (123rf.com)
EDITORIAL: Support local business this holiday season

That small business you love may not be around come spring if it’s not supported now

Parksville’s French Creek Harbour experienced a diesel spill on Nov. 23 after a barge and fishing vessel collided. (Mandy Moraes photo)
Coast Guard cleans up diesel spill in Parksville’s French Creek Harbour

Barge carrying fuel truck collides with fishing vessel

Tourists are being asked to postpone their non-essential trips to Tofino as COVID-19 cases rise across Vancouver Island, but at least one accommodation provider is offering conflicting messaging. (Westerly file photo)
Victoria woman says Tofino Airbnb host encouraged travel despite provincial restrictions

“The only way I would get a refund is if she would be able to rebook the suite for that weekend.”

Randy Brown, owner of Wintergreen Apartments on Fourth Avenue, has five trailers and a motorhome at the back of his property that he is renting to people who had been previously homeless. He wants to put 15 trailers on his property, hooked up to city sewer and water and BC Hydro. (SUSAN QUINN/ Alberni Valley News)
Another ‘deplorable’ Port Alberni property slapped with remediation order

Wintergreen Apartments and the impromptu trailer park in its grounds attract city attention

Provincial health officer Dr. Bonnie Henry updates B.C.’s COVID-19 situation at the B.C. legislature, Nov. 23, 2020. (B.C. government)
B.C. daily COVID-19 cases hits record 941 on Tuesday

Further restrictions on indoor exercise take effect

The Campbell River disc golf course was in need of some repairs, and the society that oversees the facility says the city has come through for them big time. Photo by Alistair Taylor – Campbell River Mirror
Course improvements drawing more to Campbell River disc golf course

Disc golf society says city went ‘above and beyond’ earlier this year in fixing up the facility

Victoria-based guitarist Eric Harper performs at the Port Theatre on Nov. 27. (Photo credit Tatum Duryba)
Classical guitarist to play at the Port Theatre

Eric Harper to play new songs composed during the pandemic

(Pixabay.com)
Man, 28, warned by Kootenay police to stop asking people to marry him

A woman initially reported the incident to police before they discovered others had been popped the question

Winston Blackmore (left) and James Oler (right) were sentenced on separate charges of polygamy this week in Cranbrook Supreme Court.
No more charges expected in Bountiful investigation, special prosecutor says

Special prosecutor says mandate has ended following review of evidence from Bountiful investigations

(Ashley Wadhwani/Black Press Media)
Refuse to follow B.C.’s mask mandate? Face a $230 fine

Masks are now required to be worn by all British Columbians, 12 years and older

Port Alberni court house (Alberni Valley News)
Alberni man gets four years for multiple sex assault charges

Colin Robert Hall was found guilty in the Port Alberni Law Courts

Most Read