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

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

The District of Peachland seen from the skies over Highway 97. (Contributed)
Peachland council supports RDCO emergency operations grant application

The district’s emergency operations are managed regionally

Elijah Beauregard, 16, was stabbed in downtown Kelowna on June 27, 2019. He died of his wounds three days later in hospital. His family is raising money to put a memorial bench at his favourite skatepark in Penticton.
Young woman charged in stabbing death of Penticton teen pleads guilty

The teen, who can’t be named, will appear in Kelowna Supreme Court Tuesday

B.C. wineries are open for indoor tasting despite new provincial health regulations. Photo- 
50th Parallel Winery, Instagram.
Indoor wine tastings still allowed in B.C., not considered a ‘social gathering’

“Tasting is really just part of the retail experience. The analogy I use is you wouldn’t buy a pair of pants without trying them on.”

Kelowna-based company GTEC Cannabis Co. has paid off $6 million in debts. (GTEC Cannabis Co. - Facebook)
Kelowna cannabis company pays off $6M debt

GTEC Cannabis Co. is now one of the few debt-free companies in the sector

Mainly clear and sunny skies are expected for the Okanagan-Shuswap region this week. (Maxpixels photo)
Warm, sunny week ahead in Okanagan-Shuswap

Daytime highs will reach the low 20s with mainly clear skies this week

Burnaby MLA Raj Chouhan presides as Speaker of the B.C. legislature, which opened it spring session April 12 with a speech from the throne. THE CANADIAN PRESS
B.C. NDP promises more health care spending, business support in 2021 budget

John Horgan government to ‘carefully return to balanced budgets’

The Red Pill Rapper performs to the crowd gathered for the Rally For Food Security at Blackburn Park on Saturday, April 10, 2021. (Kristal Burgess Photography)
The Red Pill Rapper performs to the crowd gathered for the Rally For Food Security at Blackburn Park on Saturday, April 10, 2021. (Kristal Burgess Photography)
Suspicion of ‘fake news media’ makes rally uncomfortable for Salmon Arm event photographer

More than 300 people counted at city park for ‘Rally For Food Security’

A lady wears a sticker given out after receiving a COVID-19 vaccine at a clinic in Richmond, B.C., Saturday, April 10, 2021. THE CANADIAN PRESS
B.C.’s COVID-19 case count slows after last week’s peak

3,219 new cases since Friday, 18 additional deaths

Join Black Press Media and Do Some Good
Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

North Cowichan councillor Tek Manhas did not violate the municipality’s code of conduct by posting a sexist meme on Facebook, council concludes. (File photo)
B.C. municipality to take no action against councillor who posted sexist meme

Tek Manhas’s meme doesn’t violate North Cowichan council’s code of conduct, municipality concludes

The former Summerland Asset Development Initiative building on Prairie Valley Road in Summerland was suggested as the site for a temporary transitional housing facility for the community. However, Summerland council has rejected this proposal. (John Arendt - Summerland Review)
Summerland council rejects transitional housing facility

Concerns raised about short timeline and condition of municipally-owned building

Penticton Vees continue their winning streak carrying a 5-0 win title as of Sunday night's hockey action. (Cherie Morgan/Cherie Morgan Photography)
Penticton Vees continue winning streak

Sunday night’s 6-1 win has them with five in a row since the start of the season

A sign on a shop window indicates the store is closed in Ottawa, Monday March 23, 2020. The Canadian Federation of Independent Business is raising its estimate for the number of businesses that are considering the possibility of closing permanently. THE CANADIAN PRESS/Adrian Wyld
Small business struggling amid COVID-19 pandemic looks for aid in Liberals’ budget

President Dan Kelly said it is crucial to maintain programs to help businesses to the other side of the pandemic

The National Security and Intelligence Committee of Parliamentarians says that includes attempts to steal Canadian research on COVID-19 and vaccines, and sow misinformation. (AP Photo/Esteban Felix)
Intelligence committee warns China, Russia targeting Canadian COVID-19 research

Committee also found that the terrorist threat to Canada has shifted since its last such assessment

Most Read