This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Jobs For Life? Maybe It's Not A Thing Of The Past After All

New CIBC report finds Canada's job market increasingly stable with workers staying employed longer than ever before

TORONTO, June 18, 2014 /CNW/ - Job stability in Canada, which was projected to be a thing of the past, is stronger than it ever has been with those holding a job with the same employer for five years or longer sitting at a record high, finds a new report from CIBC World Markets.

The CIBC report found that there is a near-record high 60 per cent chance that Canadians with stay with an employer after completing their first year on the job with the retention rate hitting nearly 95 per cent for those having five or more years at a company.

"This stable and boring job market is the complete opposite of what was envisioned not too long ago," says CIBC Deputy Chief Economist Benjamin Tal, who coauthored the report with CIBC economist, Nick Exarhos. "The job market of the "new economy" was supposed to permanently alter employer-employee relationships and workers were seen as becoming increasingly disposable, with the implication that job stability would tumble."

But he finds that the opposite is happening, driven by the changing needs of employers in the country that has seen vacancy rates rise without a corresponding decrease in unemployment.

"Rising survival rates between years of employment and increased stability makes sense in a world where there is a low supply of newly unemployed—and presumably still qualified—individuals. The situation today keeps employers motivated to keep workers they have. At the same time, a large overhang of long-term unemployed reduces the motivation of lower skill employees to branch out."

Looking closer at the unemployed in Canada shows a diverging pattern between those with in-demand skills and those without. The share of those unemployed for roughly three months or less has been approaching cycle and all-time lows recently. On the other hand, the number of those who have been unemployed for 27 weeks and longer remains at elevated levels. The authors conclude that this means the sticky unemployment rate of the past couple of years is largely due to stagnation in long-term unemployment as opposed to an increase in the number of newly unemployed.

"The abnormal relationship between recent vacancy rates and unemployment suggests that large swaths of those unemployed are not what employers are seeking," says Mr. Tal. "A discontinuity between the types of workers desired and those that are available in the ranks of the unemployed would explain how a growing number of unfilled vacancies could co-exist with a higher level of unemployed—and potentially unemployable—individuals."

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%
TSLA $240.76 0.00%
YHOO $36.60 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs