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

A man wearing a face mask to help curb the spread of COVID-19 walks in downtown Vancouver, B.C., Sunday, Nov. 22, 2020. The use of masks is mandatory in indoor public and retail spaces in the province. THE CANADIAN PRESS/Darryl Dyck
104 new COVID-19 cases in Interior Health

IH is reporting the new numbers since Friday, Nov. 20

School District 83 trustees voted in support of a 2.2 per cent increase to their remuneration, with the adjustment based on the Consumer Price Index. (File photo)
North Okanagan-Shuswap trustees remain status quo on pay increase

School District 83 trustee suggests linking remuneration to student numbers

Salmon Arm RCMP nabbed two Calgary suspects in an allegedly stolen vehicle on Highway 1 on Nov. 22, 2020. (File photo)
Salmon Arm RCMP use spike belts on Highway 1 to nab Calgary suspects

Arrests occur after Revelstoke RCMP clock allegedly stolen vehicle going faster than 160 km/h

A fire Sunday, Nov. 22, 2020 about 5 p.m. at the Canoe Forest Products plywood plant was extinguished quickly. (File photo)
Fire at Canoe Forest Products plywood plant quickly extinguished

Fire started in veneer dryer during afternoon of Sunday, Nov. 22

People wearing face masks to help curb the spread of COVID-19 cross a street in downtown Vancouver, on Sunday, November 22, 2020. The use of masks is mandatory in indoor public and retail spaces in the province. THE CANADIAN PRESS/Darryl Dyck
B.C. reports 17 COVID deaths, 1,933 new cases as hospitalizations surge over the weekend

There are 277 people in hospital, of whom 59 are in ICU or critical care

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

7-year-old Mackenzie Hodge from Penticton sent a hand-written letter to premiere John Horgan asking if she’d be able to see her elf, Ralph under the new coronavirus restrictions. (John Horgan / Twitter)
Elf on the shelf an acceptable house guest B.C. premier tells Okanagan girl

A 7-year-old from Penticton penned a letter asking if she’d be allowed to see her elf this year

Workers arrive at the Lynn Valley Care Centre seniors home, in North Vancouver, B.C., on Saturday, March 14, 2020. It was the site of Canada’s first COVID-19 outbreak in a long-term care facility. THE CANADIAN PRESS/Darryl Dyck
Rapid tests ‘not a panacea’ for care homes, Dr. Bonnie Henry says

B.C. lacks capacity for daily tests of thousands of workers

(Delta Police Department photo)
Cannabis edibles found in Halloween bag lead B.C. police to illegal lab

Delta police arrested a man and a woman while executing a warrant at a residential property Nov. 20

RCMP pictured at a motor vehicle incident during snowy conditions. (Phil McLachlan - Black Press Media)
B&E, stolen car in Vernon lands Whitehorse man in cuffs

Suspect takes off on foot in attempts to evade arrest

Penticton Search and Rescue along with the Penticton Fire Department located and airlifted an injured 21-year-old female hiker Sunday, Nov. 22, 2020. (Mike Biden photo)
Penticton search and rescue airlift injured hiker off mountain

There has been an unprecedented amount of calls for search and rescue this year

RCMP stayed with the vehicle until it was towed to a secure lot. (Black Press file photo)
Armoured truck carrying millions of dollars crashes near Princeton

The incident occurred after the truck hit an elk on the road

Most Read