Amid Job Gains, Canada’s FinServ Sector Sees Drop In Headcount

Canadian companies added 10,700 new jobs in January, according to new data from ADP, but not every industry benefited from the boost.

Data released in ADP’s Canada National Employment Report, published Thursday (Feb. 15), revealed strong employment gains in the construction, leisure and hospitality and other services spaces for the month of January.

But several sectors saw a drop in headcounts, with the second largest falling on the financial services and real estate market, which saw a decline of 7,000 jobs. The largest was in the education sector, with educational services experiencing a decline of 8,100 jobs.

“Hiring in Canada is off to a good start for 2018,” reflected ADP Research Institute Vice President and Co-Head Ahu Yildirmaz in a statement. “Although we saw losses in education and finance, there were strong gains in construction and leisure and hospitality. Construction job growth is likely driven by the record number of housing units currently under construction.”

Those units may ultimately impact jobs figures in the finance and real estate market at a later date.

“The leisure and hospitality industry is growing to meet the needs of consumers and international tourists,” Yildirmaz added.

Separate analysis released last December by PayNet in its “Small Business Lending Index” found economic growth in Canada cooled in the second half of 2017, while lending to small businesses was similarly muted.

“It looks like a hiatus or a temporary hold on investment,” said PayNet President Bill Phalen at the time.

Canada is gearing up for updates and enhancements to its payments infrastructure. According to Payments Canada, companies spend $5 billion on payment processing in the country today. Upgrades to faster, more efficient payments technologies could address many extra costs, the company said earlier this month.

“The modernization of Canada’s payment systems — specifically the introduction of faster, safer and more data-rich payments — will bring highly efficient options to Canadian businesses that will lower operational costs and boost bottom line returns over time,” stated Payments Canada President and CEO Gerry Gaetz. “Business leaders can prepare to take full advantage of the changes now by paying more attention to the way they make and receive payments, examining the inefficiencies in their existing processes and becoming more informed about the coming changes to national payment systems.”