While the Canadian economy shed over 24,000 jobs in July and the national unemployment rate edged up to 5.7% from 5.5%, the disappointment was not reflected in the Ottawa market (and let’s be sure to add context — these are still historically low rates of unemployment.)
The employment story in Ottawa for the same month was one of continued robustness, with the region adding 12,300 jobs in July, dropping the unemployment rate sharply from 5.6% in July to 4.8%. The local tech market along with the Federal Government continue to drive the market as both seek to fill positions in what is rapidly becoming one of the tightest technology talent markets in Canada. In fact, Shopify recently introduced an innovative program to attract “lapsed” developers, former developers who have taken more than two years off and are out of the market. The program will train them back up on the job — surely a sign of the times in an effort to attract talent.
With a pending Fall election, there is no doubt an expected slowdown in hiring, specifically net new IT projects with the Feds. That said, however, this summer has been one of the busiest experienced with numerous large RFP’s on the street and the Feds still forecasting to create 10,000 new jobs over the next 5 years.
TD Bank recently released a study that looks at the evolving inequality in the labour market as it relates specifically to technology and cities in Canada. We have asserted for some time that while the national unemployment rate is a healthy 5.2% to 5.9 % range, the “technology” unemployment rate is likely less than half that national rate at around 2.0% to 2.5%. The reality on the ground, however, is in major cities it is in fact closer to 0 per cent! The study shows that the 5 major centres in Canada of Toronto, Montreal, Vancouver, Calgary and Ottawa make up over 70% of the entire digital services employment in Canada, backing up the near 0% technology unemployment rate. With these kind of market forces in play, in cities like Ottawa, we can verify undoubtedly the scarcity of resources. It’s no surprise that Canada experienced the fastest clip in wage growth in a decade of 4.5%, up sharply again from 3.8% in June.
Recent global economic indicators have brought talk of a possible recession in the months and years ahead, as the long recovery cycle comes to an inevitable cooling off; however, it’s tough to fathom given the local technology market we see in Ottawa today.
In demand roles around the Ottawa tech job market this summer include Architects, IT Business Analysts, System Analysts, Programmers and Project Managers.