Factors affecting the labor market over the next decade

When it comes to the Vancouver labor market, a lot of things have remained constant over the years. Despite this however, it is expected that the labor market will change significantly over the next decade, and these changes will depend on a number of factors.

In this short article we will go over some of the notable trends and changes that will impact Vancouver’s labor market over the next decade. We will also discuss what the labor market landscape in Vancouver looks like and the steps required if you are interested in a labour market impact analysis. Let’s get started!

What Does the Labor Market Landscape in Vancouver Look Like in 2023?

Vancouver is a bustling city known for its diverse population, thriving economy, and world-renowned natural beauty. According to the City of Vancouver’s Economic Strategy 2018-2023, the city expects to see significant growth in its labour market over the next five years. By 2023, employment opportunities are projected to increase by 6.7%.

How Can a Vancouver Employer Hire Foreign Workers from Abroad?

As Vancouver’s job market grows, employers are increasingly looking for talent from abroad. The process of hiring a foreign worker can be complex and requires following certain rules and regulations set out by the Canadian federal government. Employers must first apply to Service Canada for a LMIA application in order to prove that no Canadian citizen or permanent resident is available and qualified to fill the position. Once the LMIA application is approved, employers can then apply for a work permit for the foreign worker. In some cases, employers may also need to apply for an exemption from the Labour Market Impact Assessment (LMIA). This exemption allows companies that are eligible under certain criteria to hire a foreign worker without first needing to apply for a LMIA. 

What Factors Will Influence the Labor Market in Vancouver?

There are several factors that will influence the labor market in Vancouver. Among the most notable include the following:

Deficit and Economic Growth Rate

The Canadian economy is so closely linked to the US economy that success or setback in one country is likely to affect others. After the recent US government shutdown and debt ceiling controversy, Canada’s economy has also slowed overall. And as the US economy continues its slow growth, Vancouver will see a gradual improvement in its labor market over the coming years.

The US also now has access to all-time record amounts of natural gas and oil. This has boosted the overall economy, which in turn will impact Vancouver’s economy and improve the LMIA application for years to come.

Limited market access for Vancouver bitumen

Until the middle of the last decade, Vancouver’s oil traded at a premium to international prices because of its proximity to demand centers in tight supply. However, with the increase in US oil production, Vancouver’s producers now have limited access to other markets. The cost of bringing Vancouver’s oil to the market is increasing, which could negatively impact the province’s labor market.

Economic growth in emerging markets

Vancouver’s ability to remain highly competitive over the next decade is expected to be heavily dependent on growth in the province’s three other industries: forestry, agriculture, and tourism. Vancouver has an abundant natural resources and these industries are now emerging as an economic force in the region. Production is expected to increase over the next few years.

Impact of the European Debt Crisis

Europe’s recent debt crisis has had a significant impact on the Canadian economy. However, our country’s banks were generally less affected because they had less exposure to European banks than their US counterparts. The Bank of Canada said the main impact felt by the country was an overall reduction in the financial risk burden of investors.

Retirement of Baby Boomers

Baby boomers are rapidly approaching retirement age. The number of working-age individuals for Vancouver for each retirement age continues to decline, a sign that other labor sources must be introduced to support the health and sustainability of the job market.

Vancouver has been fortunate to become Canada’s economic powerhouse over the past few years, and employment will continue to soar over the next decade. One of the state’s challenges, however, is how to address the labor shortage to meet the needs of a growing economy.