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Catalogue no. 75-006-X ISSN 2291-0840 Insights on Canadian Society Long-term job vacancies in Canada by Manon Langevin Release date: February 20, 2018
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Cette publication est aussi disponible en français.Long-term job vacancies in Canada
by Manon Langevin
Overview of the study
This study uses data from the Job Vacancy and Wage Survey (JVWS) to examine the characteristics of long-term
job vacancies, defined as positions for which recruitment efforts had been ongoing for 90 days or more on the
day of the survey. Specifically, the study aims to answer the following questions: What is the prevalence of long-
term job vacancies in Canada? How do these vacancies differ from other vacant jobs? Is there a link between
the duration of the vacancy and the offered wage?
• In 2016, long-term job vacancies (i.e., positions vacant for 90 days or more) represented 9% of Canada’s
377,500 job vacancies. As a proportion of total labour demand (i.e., job vacancies and occupied jobs),
the long-term vacancy rate was 0.23%.
• The percentage of long-term job vacancies varies by province and territory. In 2016, the North had
the highest prevalence of long-term job vacancies, with a proportion of 17% in Nunavut.
• Occupations in health (16%), management (16%) and natural and applied sciences and related fields
(14%) had the highest proportions of long-term job vacancies. The lowest proportion was sales and
service occupations (5%).
• In 2016, 19% of vacancies requiring a university degree above the bachelor level had been vacant for
90 days or more, compared with 6% for positions with no educational requirements.
• Offered wages were higher for long-term job vacancies. Even after accounting for the difference in
characteristics of long-term job vacancies and other vacancies, offered wages were 5% higher for full-
time long-term job vacancies than they were for those who had been vacant for less than 15 days.
Introduction
Businesses invest time and money to attract and hire tighten up. Fewer people are looking for jobs, and there
candidates who possess the skills needed to carry out the is more competition between employers as businesses
duties of the positions they want to fill. Some positions expand and increase their workforce, a phenomenon
require minimal skills, experience or education, while referred to as a congestion effect. As a result of these
others require specific knowledge and skills, making factors, finding new employees takes longer.
them more difficult to fill. For businesses, it is important
This effect is even more pronounced among businesses
to understand the factors that affect the duration of
that are seeking skilled workers.2 Other studies have
vacant positions since long-term job vacancies can
shown that the duration of a vacancy is positively
lead to additional costs and challenges (e.g., decreased
correlated with more demanding hiring criteria such as
production or lost business opportunities). For workers,
age, level of education and years of required experience.3
a better understanding of the characteristics of long-
Positions left vacant for longer periods are also more
term job vacancies can help them make better decisions
likely to be removed from the market prior to being
about training and career choices.
filled.4
The duration of job vacancies varies depending on
Sometimes, vacant positions can be difficult to fill because
economic and labour market conditions. 1 When
of the type of work required5 or working conditions (work
the economy is doing well and approaching its full
schedule, wages and benefits). Jobs that involve working
employment potential, the labour market tends to
Statistics Canada — February 2018 Insights on Canadian Society / 1Long-term job vacancies in Canada
at night or performing dangerous Long-term job vacancies about 9% of all job vacancies in
tasks are examples of positions represent 9% of all vacancies Canada (Chart 1) and 0.23% of
that are more difficult to fill. These total labour demand (i.e., the total
types of positions are not a good fit According to a previous study, the number of filled and unfilled positions
for everyone, and employers must most common reasons provided in Canada). The results were similar
often provide additional benefits in by employers for long-term job in 2015.13
order to attract a sufficient number vacancies were a smaller pool of
candidates and a lack of experience Long-term job vacancies, however,
of candidates.
among applicants. 9 Even though do not affect all regions of Canada
Finally, positions can be more difficult vacancy duration should not be and industries in the same way.
to fill when the demand for certain used exclusively to identify sectors Regional differences are examined
skills or educational requirements where labour demand exceeds in the next section.
exceeds the supply—that is, when supply, it can offer a cautionary tale
there is a labour shortage. In such for those sectors.10 When labour Long-term job vacancies are
cases, employers may compete demand increases, the number of more prevalent in the North,
between themselves to select the unemployed workers often declines in oil-producing provinces,
best candidate, which may result in which, in turn, brings an increase and in British Columbia
higher offered wages and in a longer in the duration of job vacancies.
period of time to find qualified The proportion of long-term job
When this happens, the probability
candidates. vacancies varies by province and
of a position remaining vacant long
territory. In 2016, the percentage of
The issue of long-term job vacancies enough to be observed increases,11
positions vacant for 90 days or more
has not been studied recently in which exerts upward pressure on
varied from less than 6% in Prince
Canada, largely because there was a vacancy rates (all else being equal).
Edward Island to nearly 17% in
lack of detailed data on job vacancies.6 In 2016, the number of positions Nunavut (Table 1). In general, there
This situation changed with the vacants for 90 days or more was a higher percentage of long-
introduction of the Job Vacancy averaged 35,200, 12 representing term job vacancies in the territories
and Wage Survey (JVWS), which
collects data on the characteristics
of job vacancies in Canada, including Chart 1
the number of days that employers Distribution of job vacancies, by vacancy duration at the time of the survey,
spent recruiting (see Data sources, 2015 and 2016
methods and definitions.) In this study,
percent
a long-term job vacancy is defined
30
as a position for which recruitment
efforts had been ongoing for 90 days7
25
or more on the day of the survey.8
The following questions are 20
examined in the study:
15
1. What is the prevalence of long-
term job vacancies in Canada?
10
2. How do long-term job vacancies
differ from other vacant jobs?
5
3. Is there a link between the
duration of the vacancy and the 0
offered wage? Less than 15 15 to 29 30 to 59 60 to 89 90 or more
Number of days the position has been vacant
2015 2016
Note: The percentages do not add up to 100 because vacant positions for which employers are constantly recruiting have
no duration.
Source: Statistics Canada, Job Vacancy and Wage Survey, 2015 and 2016.
2 / Insights on Canadian Society February 2018 — Statistics CanadaLong-term job vacancies in Canada
(Nunavut, the Northwest Territories Yukon, the Northwest Territories The prevalence of long-term
and Yukon), which also had the and Nunavut, long-term vacancies job vacancies is higher in
highest percentages of workplaces represented 0.42% to 0.50% of the health care and social
reporting long-term job vacancies. total labour demand in those parts of assistance and professional,
Long-term job vacancies also the country. Among the provinces, scientific and technical
represented a larger proportion of British Columbia had the highest services sectors
vacant positions in the oil-producing rate (0.33%). The lowest rate was
provinces (Alberta, Saskatchewan in Prince Edward Island, where In 2016, the health care and social
and Newfoundland and Labrador) long-term job vacancies represented assistance sector (14%) and the
and in British Columbia. 0.11% of total labour demand.14 professional, scientific and technical
services sector (11%) had the
In the territories, long-term job The territories, however, represent a highest prevalence of long-term
vacancies did not only affect a small fraction of Canada’s long-term job vacancies (Table 2). 15 The
higher percentage of workplaces, job vacancies with 1% of the total professional, scientific and technical
but each workplace also reported in 2016. Much like total vacancies, services sector also posted the
a higher proportion of long-term most long-term job vacancies could highest long-term job vacancy rate
job vacancies. Factors that may be found in Ontario (41%), British (0.31%). The lowest long-term
contribute to labour shortages in this Columbia (20%), Quebec (16%) vacancy rate was in educational
part of Canada include remoteness and Alberta (13%).The disparities services, which represented 0.07%
from large urban centres and greater between provinces may reflect of labour demand.
challenges in finding workers in this other regional differences related
part of the country. to occupations and industries. These Long-term job vacancies also
differences are examined in the next varied by occupation. Those in
When expressed in relation to health (16%), management (16%)
section.
total labour demand, the rate and natural and applied sciences
was also higher in the North. In and related fields (14%) had the
highest proportions of long-term
Table 1 job vacancies (Chart 2). For these
Total number of job vacancies and percentage of positions vacant for 90 days or occupations, the percentage of such
more, by province and territory, 2016 vacancies was approximately three
times higher than the proportion
Percentage
of positions observed for occupations in sales
vacant for and services (5%). Such results
Number of job Job 90 days or Long-term job reflect the aging of the population,
vacancies1 vacancy rate more vacancy rate2
which exerts upward pressure on
thousands percent
the demand for health services, and
Canada 377.5 2.4 9.3 0.23
Newfoundland and Labrador 3.6 1.8 10.6 0.19
could possibly reflect the importance
Prince Edward Island 1.2 2.0 5.6 0.11 of scientific and management skills in
Nova Scotia 8.6 2.2 9.1 0.20 the Canadian labour market.
New Brunswick 6.3 2.1 8.0 0.17
Quebec 62.5 1.8 9.0 0.17 The proportion of long-term job
Ontario 160.2 2.6 9.0 0.24 vacancies was also calculated for
Manitoba 11.2 1.9 7.1 0.14 each occupational skill category.
Saskatchewan 9.3 2.0 10.6 0.21
Alberta 42.1 2.2 10.7 0.23 To do so, job vacancies were
British Columbia 71.0 3.4 9.7 0.33 divided into four broad categories:
Yukon 0.6 3.4 14.8 0.50 management positions (senior and
Northwest Territories 0.6 2.6 16.2 0.42 intermediate), positions requiring a
Nunavut 0.3 2.8 16.9 0.47
university education (professionals),
1. The number of vacant positions includes positions for which employers are constantly recruiting.
2. The long-term job vacancy rate can be obtained by dividing the number of positions vacant for 90 days or more by the
positions requiring a college
total number of job vacancies and occupied jobs. education (technical personnel and
Source: Statistics Canada, Job Vacancy and Wage Survey, 2016. supervisors) and positions requiring
a high school diploma or less (support
staff).
Statistics Canada — February 2018 Insights on Canadian Society / 3Long-term job vacancies in Canada
The results indicate that
Table 2 management and professional
Total number of job vacancies and percentage of positions vacant for 90 days or positions were the most likely to
more, by main industrial sector, 2016 remain vacant for 90 days or more
Percentage (Chart 3). The percentage of long-
of positions
vacant for
term job vacancies for management
Number of job Job 90 days or Long-term job positions (16%) was nearly three
vacancies1 vacancy rate more vacancy rate2 times higher than the rate observed
thousands percent for support staff (6%). Among
All sectors 377.5 2.4 9.3 0.23 health occupations, more than 1
Construction 24.2 2.4 8.6 0.21 in 5 (22%) vacant professional
Manufacturing 30.1 2.0 8.5 0.17
Wholesale trade 15.1 1.9 9.6 0.18
positions were long-term vacancies
Retail trade 53.4 2.7 9.3 0.25 while less than 1 in 10 (8%) vacant
Transportation and warehousing 17.4 2.3 9.5 0.22 support staff positions were long-
Professional, scientific term vacancies.
and technical services 25.5 2.9 10.9 0.31
Administrative and support services 30.7 3.8 6.3 0.24
Educational services 9.7 0.8 8.9 0.07
Health care and social assistance 37.9 2.0 13.7 0.27
Accommodation and food services 52.5 4.0 7.1 0.28
Other 80.9 2.4 9.9 0.24
1. The number of vacant positions includes positions for which employers are constantly recruiting.
2. The long-term job vacancy rate can be obtained by dividing the number of positions vacant for 90 days or more by the
total number of job vacancies and occupied jobs.
Source: Statistics Canada, Job Vacancy and Wage Survey, 2016.
Chart 2
Percentage of positions vacant for 90 days or more, by occupational category, 2016
Occupational category
Management
Health
Natural and applied sciences and related occupations
All occupations
Trades, transport and equipment operators and related occupations
Natural resources, agriculture and related production occupations
Education, law and social, community and government services
Business, finance and administration
Manufacturing and utilities
Art, culture, recreation and sport
Sales and service
0 2 4 6 8 10 12 14 16 18
percent
Source: Statistics Canada, Job Vacancy and Wage Survey, 2015 and 2016.
4 / Insights on Canadian Society February 2018 — Statistics CanadaLong-term job vacancies in Canada
Large workplaces are more
likely to have long-term job Chart 3
vacancies Percentage of positions vacant for 90 days or more, by skill level, 2016
In 2016, the highest prevalence of percent
positions vacant for 90 days or more 18
was found in larger workplaces 16 16 *
(500 employees or more), which *
14
posted a 14% long-term vacancy
rate. In comparison, the proportion 12 *
of positions vacant for 90 days or 10
more was 6% in workplaces with
8
20 to 99 employees, 9% for those
with 100 to 499 employees, and 6
10% in workplaces with less than 4
20 employees (Table 3).
2
Wo r k p l a c e s w i t h l e s s t h a n
0
20 employees, however, had the Support staff Technical personnel Professionals Senior and intermediate
highest long-term vacancy rate and supervisors managers
(0.30% of labour demand). Since Skill level
smaller workplaces do not have the * significantly different from reference category (support staff) (p < 0.05)
same human resources or staffing Source: Statistics Canada, Job Vacancy and Wage Survey, 2016.
recruitment tools as larger ones, it
is possible that smaller workplaces
face greater recruitment or hiring Table 3
challenges. Small companies also Total number of job vacancies and percentage of positions vacant for 90 days or
have higher staff turnover rates than more, by workplace size, 2016
large businesses,17 which increases Percentage
of positions
the probability that they have to vacant for
recruit for positions that take longer Number of job Job 90 days or Long-term job
to fill. vacancies1 vacancy rate more vacancy rate2
thousands percent
While smaller workplaces All workplaces 377.5 2.4 9.3 0.23
represent the majority of Canadian Less than 20 employees 127.1 3.0 10.0 0.30
workplaces, 18 relatively few had 20 to 99 employees 112.8 2.5 6.2 0.16
vacant positions for 90 days or more 100 to 499 employees 82.8 2.4 9.1 0.22
500 employees or more 54.8 1.6 14.4 0.23
(Chart 4). In 2016, 1% of workplaces
with less than 20 employees had at 1. The number of vacant positions includes positions for which employers are constantly recruiting.
2. The long-term job vacancy rate can be obtained by dividing the number of positions vacant for 90 days or more by the
least one long-term vacancy, while total number of job vacancies and occupied jobs.
8% had a vacant position for less Source: Statistics Canada, Job Vacancy and Wage Survey, 2016.
than 90 days and 91% had no job
vacancies.
Positions with higher advanced skills would be more likely
Among larger workplaces, 28% education and experience to use a more comprehensive hiring
had at least one position that had requirements take longer to process in order to evaluate the
been vacant for 90 days or more, fill candidates. They are more inclined
and 18% had no job vacancies. This to spend more hours per candidate21
result is not surprising, given that Previous studies have indicated that and on average they interview more
larger workplaces may be more it takes longer to fill positions with a candidates before making a job
likely to fill highly skilled positions, high level of required education and offer.22 This cautious approach to
which typically take longer. Larger work experience. 20 Not only are candidate selection can in large part
workplaces may also have more rigid such qualifications more difficult to be explained by the high cost of
hiring processes.19 find, but employers looking for more terminating a qualified worker and
Statistics Canada — February 2018 Insights on Canadian Society / 5Long-term job vacancies in Canada
the productivity losses that result
Chart 4 from matching the wrong person to
Distribution of workplaces¹ by job vacancy situation and workplace size, 2016 a job. At the same time, candidates
with higher levels of educational
percent
attainment are more likely to receive
100
a large number of job offers and are
18 less likely to accept a job offer than
80 37 their less-educated counterparts.23
67 In 2016, nearly one-quarter (23%)
60 of long-term job vacancies were
91 54
positions for which the employer
40
did not specify any educational
51
requirements (Table 4). However,
the prevalence of long-term job
20 30 vacancies was higher among positions
28
1 12
requiring postsecondary education.
8
0 3 Among vacancies for jobs requiring a
Less than 20 employees 20 to 99 employees 100 to 499 employees 500 employees or more bachelor’s degree, 15% were long-
Workplace size term job vacancies. For positions
No job vacancies requiring a graduate degree, the
All job vacancies were vacant for less than 90 days
At least one job vacancy was vacant for 90 days or more
corresponding proportion was 19%,
which is three times higher than
1. The unit of analysis is the workplace. The calculation is based on all workplaces.
Source: Statistics Canada, Job Vacancy and Wage Survey, 2016. the proportion recorded among
positions with no educational
requirements (6%).
Table 4
Similar trends can be observed
Distribution of job vacancies and percentage of positions vacant for 90 days or
for jobs requiring professional
more, by qualifications required, 2016
certification or work experience.
Distribution Percentage
Distribution of positions of positions Among vacancies for positions
of positions vacant for vacant for requiring at least eight years of
vacant for less 90 days 90 days experience, 18% had been vacant
than 90 days or more or more
for 90 days or more—double the
percent
percentage obtained for all vacancies.
Level of education required 100.0 100.0 9.3
No minimum level of education sought 30.1 22.5* 6.3
High school diploma or equivalent 30.0 26.1* 8.5 Factors related to longer
Apprenticeship or trades certificate or diploma 7.4 9.6* 10.9 vacancy times among vacant
College, CEGEP or other non-university certificate or diploma 15.4 17.1 11.2 positions
University certificate or diploma below bachelor’s degree 4.0 3.8 10.2
Bachelor’s degree 10.9 16.6* 15.2 The findings presented in this section
University certificate or diploma above bachelor’s degree 2.2 4.3* 18.6 are from a logistic regression model.
Professional certification requested With this methodology, risk factors
Yes 20.7 31.3* 13.3
No 79.3 68.7* 8.2 affecting the probability that a vacant
Work experience required
position will be a long-term vacancy
Less than 1 year 46.9 41.7* 7.9 can be examined simultaneously.
1 year to less than 3 years 31.9 28.5* 8.6 The dependent variable is equal to
3 years to less than 5 years 9.8 12.2* 12.2 1 when a position has been vacant
5 years to less than 8 years 9.1 13.7* 14.7
8 years or more 2.2 3.9* 17.5
for 90 days or more; otherwise it
is equal to 0. The model takes into
* significantly different from reference category (positions vacant for less than 90 days) (p < 0.05)
Source: Statistics Canada, Job Vacancy and Wage Survey, 2016. account several risk factors related
to the local labour market (e.g.
6 / Insights on Canadian Society February 2018 — Statistics CanadaLong-term job vacancies in Canada
unemployment rate), workplace All else equal, workplace size remains worker behaviours are closely
characteristics (e.g., industry, an important factor. This result related and the cost of labour is
size), and the position to be filled supports the view that the duration determined by variations in labour
(e.g., occupation type, educational of a vacancy is not solely linked supply and demand. Employers who
requirements). to composition of employment are experiencing a rising demand for
within large businesses, but also to their products or a labour shortage
In general, the same trends observed
factors that may be more specific to in certain key occupations should be
in the descriptive analysis were
large firms, such as a longer hiring more inclined to offer higher salaries
found. The province, workplace
process. Finally, as observed in the and negotiate advantageous work
size, educational requirements,
descriptive analysis, a significantly arrangements.
work experience requirements,
higher probability was also observed
and occupational category were In 2016, employers were willing to
for positions requiring a certain level
all significantly associated with the pay $23.61 per hour on average to
of educational attainment or more
probability of a position being vacant fill long-term vacancies compared
years of work experience.
for at least 90 days, even after holding with $19.63 for positions vacant for
other factors constant (Table 5). less than 90 days, amounting to a
Offered wages are higher for difference of about 20 % (Table 6).26
The probability of a position long-term job vacancies
remaining vacant for 90 days or Differences in the characteristics
more was significantly higher Offered wages are an important of long-term job vacancies could
in the territories, and in British indicator of the working conditions explain the observed wage gaps.
Columbia, Alberta, Saskatchewan with potential employers. According More particularly, long-term job
and Newfoundland and Labrador. to economic theory, employer and
This raises the possibility that the
characteristics of these regions Table 5
and of the local workforce, along Predicted probability that a position would be vacant for 90 days or more, by various
with provincial regulations and local characteristics, 2016
economic fluctuations, influence predicted
the length of time that positions probability
remain vacant. For example, in Province
the territories, it is possible that Newfoundland and Labrador 12.0*
remoteness from urban centres Prince Edward Island 7.5
plays an important role and slows Nova Scotia 9.9
New Brunswick 11.3†
the migration of workers toward Quebec 9.4
that part of the country. Ontario (ref.) 9.7
Manitoba 7.4**
As observed in the descriptive analysis, Saskatchewan 12.2**
occupations in management, health, Alberta 12.9**
and natural and applied sciences had British Columbia 11.4**
a significantly higher probability of Northwest Territories 19.3**
having long-term job vacancies.24 Quarter
January to March 9.6†
However, the regression results April to June (ref.) 10.5
indicate that the probability of long- July to September 9.9
term job vacancies was significantly October to December 11.2
lower for the professional and Local unemployment rate below the national unemployment rate
technical services sector. This finding Yes 10.4
No (ref.) 10.2
is contrary to the observations made
Full-time job
during the descriptive analysis and
Yes 11.4**
is probably attributable to the fact No (ref.) 8.2
that a large number of occupations Permanent job
in natural and applied sciences can Yes 10.6**
be found in this sector.25 No (ref.) 9.6
Statistics Canada — February 2018 Insights on Canadian Society / 7Long-term job vacancies in Canada
vacancies are more likely to be
Table 5 positions with a high level of required
Predicted probability that a position would be vacant for 90 days or more, by various education, which tend to pay more.
characteristics, 2016
predicted In most cases, however, offered
probability wages are higher for long-term job
Main industrial sector vacancies than for positions vacant
Construction 10.2 for less than 90 days, regardless
Manufacturing 10.1* of sector, occupation, educational
Wholesale trade 9.8*
Retail trade 12.0
requirements or required work
Transportation and warehousing 11.9 experience. The wage gap varied,
Professional, scientific and technical services 8.9** depending on the characteristics
Administrative and support services 7.2** of the vacant positions. This
Educational services 8.7** finding applies to both full-time
Health care and social assistance (ref.) 12.1
Accommodation and food services 11.5 and part-time positions across the
Other sectors 9.8** entire period for which data were
Occupational category collected. The gap, however, is
Management 11.9** smaller when only full-time positions
Business, finance and administration (ref.) 8.6 are considered.
Natural and applied sciences and related occupations 12.2**
Health 13.2** Yet, the largest wage gaps (as a
Education, law and social, community and government services 7.1*
percentage) were not necessarily
Art, culture, recreation and sport 8.2
Sales and service 11.0** observed in the sectors or
Trades, transport and equipment operators and related occupations 10.6** occupations with higher numbers
Natural resources, agriculture and related production occupations 10.7† or prevalence of long-term job
Manufacturing and utilities 7.5 vacancies. In 2016, the largest gaps
Workplace size between long-term job vacancies
Less than 20 employees 11.5
20 to 99 employees 7.5**
and other job vacancies were in
100 to 499 employees 10.5* the manufacturing (32%) and
500 employees or more 14.6** transportation and warehousing
Level of education required sectors (33%). The health care
No minimum level of education sought (ref.) 9.2 and social assistance (21%) and
High school diploma or equivalent 10.3*
Apprenticeship or trades certificate or diploma 11.6**
professional, scientific and technical
College, CEGEP or other non-university certificate or diploma 10.4* services sectors (18%) ranked
University certificate or diploma below bachelor’s degree 9.3 fourth and sixth, respectively.
Bachelor’s degree 12.2**
University certificate or diploma above bachelor’s degree 14.6** With regard to required work
Work experience required experience, the salary gap for long-
Less than 1 year (ref.) 10.2 term job vacancies for positions
1 year to less than 3 years 9.0** requiring less than one year of
3 years to less than 5 years 11.6*
5 years to less than 8 years 13.3**
experience was nearly five times
8 years or more 14.1** higher (27%) than the gap observed
Professional certification requested for positions requiring eight or more
Yes 12.7** years of experience (6%). This
No (ref.) 9.7 is despite the fact that there is a
* significantly different from reference category (ref.) (p < 0.05) higher prevalence of long-term job
** significantly different from reference category (ref.) (p < 0.01)
†
significantly different from reference category (ref.) (p < 0.10)
vacancies among positions requiring
Source: Statistics Canada, Job Vacancy and Wage Survey, 2016. eight or more years of experience.
8 / Insights on Canadian Society February 2018 — Statistics CanadaLong-term job vacancies in Canada
work experience requirements. In
Table 6 such cases, better wages are often
Average hourly wage offered by characteristic and duration of vacant positions, 2016 offered for this type of position
All job vacancies Full-time job vacancies to compensate for the unpleasant
Vacant Vacant aspects of the job and to attract a
for less Vacant for less Vacant sufficient number of applicants. In
than 90 for 90 days than 90 for 90 days
days or more days or more contrast, salaries may be more rigid
dollars for positions requiring an elevated
All vacant positions 19.63 23.61* 21.94 25.71* level of education or experience.
Main industrial sector To measure the extent to which
Construction 22.19 24.22* 22.53 24.24
Manufacturing 20.48 27.04* 20.99 27.35* the duration of vacancies affect the
Wholesale trade 22.34 26.68* 23.13 27.24* hourly wage offered by employers,
Retail trade 13.57 13.71 16.84 18.64 a linear regression model was
Transportation and warehousing 20.95 27.79* 22.47 30.04* estimated with the offered wage as
Professional, scientific and technical services 27.78 32.71* 29.20 33.23*
Administrative and support services 17.11 21.46* 17.99 22.50*
the dependent variable. Two models
Educational services 26.82 29.64* 27.42 31.11* were estimated. The first model
Health care and social assistance 22.95 27.87* 24.61 29.36* included the duration of the vacancy
Accommodation and food services 12.32 14.28* 13.05 14.80* as the only variable, whereas the
Other 22.11 25.35* 24.17 26.79*
second model added several other
Occupational category
Management 33.89 37.35* 35.30 38.93*
control factors related to the region,
Business, finance and administration 21.69 24.17* 22.97 25.65* job seasonality, the local labour
Natural and applied sciences and related occupations 29.54 34.46* 29.75 34.57* market (unemployment rate, activity
Health 25.36 29.65* 26.73 30.72* rate, vacancy rate), workplace
Education, law and social, community
and government services 23.88 27.80* 25.41 29.26*
(size, sector), job characteristics
Art, culture, recreation and sport 17.90 20.98* 19.50 22.39* (occupation, required skill level) and
Sales and service 13.45 14.61* 14.97 16.44* requirements in terms of education
Trades, transport and equipment operators and experience. Separate models
and related occupations 20.19 22.06* 20.84 22.43*
Natural resources, agriculture and related
were estimated for all positions and
production occupations 14.88 14.35 15.08 14.31 for full-time positions.
Manufacturing and utilities 15.93 18.47* 16.20 18.64*
The results indicate that most of
Level of education required
No minimum level of education sought 13.70 15.24* 15.05 16.72* the observed salary gap (slightly
High school diploma or equivalent 15.45 17.03* 16.59 18.62* more than 80%) can be explained
Apprenticeship or trades certificate or diploma 21.19 21.80 22.51 22.50 by differences in the characteristics
College, CEGEP or other non-university certificate of the vacant positions, which is
or diploma 23.05 25.07* 24.06 25.58*
University certificate or diploma below bachelor’s degree 28.43 32.49* 29.07 33.77* not surprising since there is a high
Bachelor’s degree 34.40 37.57* 34.87 38.59* prevalence of long-term job vacancies
University certificate or diploma above bachelor’s degree 39.95 44.46* 40.62 44.90* among well-paid occupations.
Work experience required
Less than 1 year 15.46 18.93* 16.89 21.40* However, even after taking the
1 year to less than 3 years 18.24 20.17* 19.16 20.19* differences in characteristics into
3 years to less than 5 years 25.90 26.36 26.34 26.23 account, the offered hourly wage for
5 years to less than 8 years 32.48 34.70* 32.84 35.13*
full-time positions vacant for 90 days
8 years or more 47.04 50.90* 48.05 50.85
or more was 5% higher than the
* significantly different from reference category (positions vacant for less than 90 days) (p < 0.05)
Source: Statistics Canada, Job Vacancy and Wage Survey, 2016. offered wage for positions that had
been vacant for less than 15 days
(Table 7). Thus, an employer who
It may be that salary gaps are more of positions offering less attractive offers $20 per hour27 for a full-time
closely related to the characteristics working conditions (such as hours position that has been vacant for
of the long-term job vacancies than of work, work environment and less than 15 days, would typically
to their prevalence. For example, types of duties) among long-term job offer one more dollar per hour for
there may be a higher prevalence vacancies with lower educational or the same position when the vacancy
Statistics Canada — February 2018 Insights on Canadian Society / 9Long-term job vacancies in Canada
varies according to their various
Table 7 characteristics. The study’s findings
Percentage difference in hourly wages, by vacancy duration, 2016 reveal, for instance, that there is
Full-time job a higher prevalence of long-term
All job vacancies vacancies
job vacancies in the territories, in
Model 1 Model 2 Model 1 Model 2
the oil-producing provinces and in
percent
British Columbia. There is also a
Duration
higher percentage of long-term job
Less than 15 days (ref.) ... ... ... ...
15 to 29 days 5.5** -0.3 4.9** -0.1 vacancies in health care, management
30 to 59 days 18.2** 3.4** 16.8** 3.6** and professional positions, and in
60 to 89 days 24.6** 4.1** 24.2** 5.3** positions requiring a high level of
90 days or more 25.9** 4.4** 24.3** 5.4** education, more work experience
... not applicable or professional certification.
** significantly different from reference category (ref.) (p < 0.01)
Source: Statistics Canada, Job Vacancy and Wage Survey, 2016. Lastly, the findings of this study
indicate that there is a link between
the offered hourly wage and the
duration is at least 90 days. The wage determining their field of study. For duration of the vacancy. The average
advantage of long-term job vacancies employers, a better understanding hourly wage for long-term job
over positions that have been vacant of factors that cause long-term vacancies is significantly higher than
for less than 15 days was 4% when job vacancies could translate into the average hourly wage of positions
all positions were considered (i.e., improved hiring strategies that could vacant for less than 90 days. The
part-time and full-time positions). significantly reduce the time it takes salary gap persists when differences
to fill a position when there is a in the characteristics of long-term job
Conclusion labour shortage or when they plan vacancies and other vacant positions
to expand. are taken into account. These
The duration of job vacancies
provides information that may be This article presents a profile of long- findings support the conclusion that
useful for understanding future term job vacancies in Canada and the employers are willing to offer higher
fluctuations in labour demand. associated risk factors. In 2016, 9% wages for a comparable position
For individuals seeking their first of Canada’s 377,500 vacant positions when it remains vacant for 90 days
job or looking to make a career remained unfilled for 90 days or or more.
change, identifying which sectors are more. Although long-term job
growing or which have insufficient vacancies occur in all occupations Manon Langevin is an analyst for
labour supply may be crucial in and all regions, their prevalence Statistics Canada’s Insights on Canadian
Society.
10 / Insights on Canadian Society February 2018 — Statistics CanadaLong-term job vacancies in Canada
Data sources, methods and definitions
Data sources
Data for the Job Vacancy and Wage Survey (JVWS) are collected The characteristics of vacant positions are collected at the
quarterly, with the exception of the first quarter of 2015, occupation level. When characteristics varied among vacancies
which only covers February and March. The JVWS includes for the same occupation, employers were instructed to declare
all workplaces in Canada except private households, religious the characteristics of one of the positions only. For required
organizations, federal, provincial and territorial governments, level of education, employers were asked to report the lowest
international public administrations and all other extra-territorial level of required education among all vacancies for the same
public administrations. occupation. For vacancy duration, employers were asked to
report the amount of time it took to fill the position that
For the purposes of this study, data were classified by year remained vacant for the longest period. Consequently, long-term
and annual estimates were obtained by taking the average for job vacancies and positions requiring a low level of education
all quarters and giving each quarter equal weight. Classifying may be overrepresented in the JVWS.
quarterly data minimizes the effect of seasonality and extreme
values on the estimates. Since there were no significant Data for the JVWS are collected monthly and relate solely
differences between the estimates for 2015 and 2016, the to positions vacant on the first day the month or positions
analysis is mainly based on the 2016 results. expected to be vacant during the month. Consequently, jobs
that tend to be filled quickly (i.e., in less than four weeks) are
Job vacancies less likely to be included in the sample. Short-term vacancies
are therefore underrepresented in this type of data.
The unit of analysis used in this study is a job vacancy (unless
otherwise indicated). A “job vacancy ” refers to a position The JVWS, however, does not provide information on the total
that is vacant on the first day of the month or that becomes duration of job vacancies. In other words, the total number
vacant during the course of the month. The employer must of days between when the position became vacant and when
be actively recruiting a new employee outside its organization it was filled is unknown. Consequently, some positions that
and have duties related to the position to perform during the fall into the “positions vacant for less than 90 days” category,
month. The position can be full time, part time, permanent, and very likely those vacant for 60 to 90 days, are positions
temporary or seasonal. that will still be vacant 90 days after being posted, and thus
are actually long-term job vacancies.
Vacant positions for which recruitment efforts had been ongoing
for 90 days or more on the day of the survey are considered
long-term job vacancies.
Statistics Canada — February 2018 Insights on Canadian Society / 11Long-term job vacancies in Canada
Recruitment methods used by employers
The number of days it takes to hire a new employee is largely Even though the recruitment methods used for long-term job
influenced by the recruitment strategies used by the employer.28 vacancies and positions vacant for less than 90 days ranked
In general, employers do not hire the first person who applies similarly, there were some differences in terms of preferred
at the company. Instead, they select the best candidate from a methods. Employers were more likely to use professional
relatively large pool of applicants. However, the hiring process networking, employment agencies or headhunting firms for
can be costly for employers, who must strike a balance between long-term job vacancies. They were also more likely to publish
the benefits of finding the right person and the production ads in newspapers.
losses associated with the job vacancy. Choosing the right
recruitment strategy is therefore very important, as it affects The largest difference, however, was in the number of
the likelihood of finding the right candidate for the position, recruitment methods used to fill the two different types of
the amount of time spent searching for the right candidate vacancies. In 2016, 34% of employers seeking to fill positions
and the probability that the position will be filled.29 vacant for less than 90 days used four or more recruitment
methods. For long-term job vacancies, the corresponding
The number of methods used in the hiring process is also percentage was 43% (Chart 5).
important. Using multiple recruitment channels gives employers
access to more candidates 30 or a larger pool of candidates with
more diverse personal characteristics. Chart 5
Number of recruitment methods used by employers,
The most common recruitment methods used by employers
include posting vacancies on online job boards, advertising by vacancy duration, 2016
vacancies on the company website, and obtaining referrals
through informal networks (Table 8). More traditional methods, percent
such as publishing ads in newspapers, posting a sign on the 70
storefront of the workplace, and advertising at job fairs and
recruiting events at educational institutions, ranked last in 2016. 60 *
50
Table 8
Recruitment methods used by employers, by vacancy 40 *
duration, 2016
Positions vacant Positions vacant 30
for less than for 90 days
90 days or more 20
percent
10
Recruitment method *
Personal contacts, referrals,
0
informal networks 58.5 57.4
Positions vacant Positions vacant
Sign on the workplace storefront 18.4 17.1 for less than 90 days for 90 days or more
Company website 56.8 60.0*
Online job boards 65.2 69.6* Number of methods used
Social media 36.1 39.1* 3 methods or less 4 to 7 methods 8 methods or more
Job or recruitment fairs at schools, * significantly different from reference category (positions vacant for less than 90 days)
colleges or universities 15.6 20.6* (p < 0.05)
Government employment Source: Statistics Canada, Job Vacancy and Wage Survey, 2016.
centre or website 20.2 24.2*
Professional networking, employment
agencies or headhunting firms 13.6 22.6*
Newspaper ads 13.1 18.4*
* significantly different from reference category (positions vacant for less than 90 days)
(p < 0.05)
Source: Statistics Canada, Job Vacancy and Wage Survey, 2016.
12 / Insights on Canadian Society February 2018 — Statistics CanadaLong-term job vacancies in Canada
Notes
1. See van Ours and Ridder (1991); Chen and Eriksson 9. See Galarneau et al. (2001).
(2009).
10. The job vacancy rate is generally used to identify labour
2. See van Ours and Ridder (1991). Furthermore, shortages in a specific sector or occupation. According
Morissette and Zhang (2001) have shown that in to van Ours and Ridder (1991), the duration of job
1999, businesses in Canada with high vacancy rates vacancies is positively correlated with the job vacancy
were those that innovated and sought highly qualified rate.
workers.
11. Positions that generally have very short vacancies are
3. See Gorter and van Ommeren (1999). It also takes underrepresented in databanks, which is attributable
longer to fill non-manual positions (Andrews et al. to collection periods.
2008), high-skilled jobs (van Ours and Ridder 1991;
12. In this article, the terms “long-term job vacancies”
Burdett and Cunningham 1998) and jobs in smaller
and “positions vacant for 90 days or more” are used
companies (Burdett and Cunningham 1998; Chen and
interchangeably.
Eriksson 2009).
13. How vacancy durations vary in accordance with
4. See Andrews et al. (2008).
economic cycles cannot be studied for several more
5. See Chen and Eriksson (2009). years since chronological data do not go back far
enough in time.
6. A better understanding of the factors affecting the
duration of job vacancies, and especially the factors 14. In 2016, British Columbia had the lowest unemployment
associated with long-term vacancies, is useful for rate among all Canadian provinces (6.0%). In
studying and measuring frictional and structural contrast, Prince Edward Island had the second-highest
unemployment in Canada. Frictional unemployment unemployment rate among the provinces (10.7%).
is unemployment resulting from the time it takes
15. Galarneau (2016) presented similar results for the
for a person to find another job. It generally stems
health care and social services sector, which posted
from a lack of information among unemployed persons
some of the highest job vacancy and long-term
and employers. Structural unemployment is caused by
vacancy rates in 2011. In this industry, the aging of the
labour market adjustment problems. The sources of
population is exerting upward pressure on demand
these problems include changes in demographic, social
for services (expansion demand) while the growing
and economic structures and mechanisms that hinder
number of retiring workers is increasing demand for
adjustment between labour supply and demand (e.g.,
labour (replacement demand).
labour market regulation and taxation).
16. Data are collected at the workplace level and not at the
7. In the 1999 Workplace and Employee Survey, positions
company level. The economic activity of a workplace
that were vacant for 4 months or more were considered
occurs within a specific geographic location, whereas
long-term vacancies. In the 1971 to 1978 Job Vacancy
a company is a legal entity that may be comprised of
Survey, positions that had been vacant for four weeks
several workplaces.
or more were considered long-term vacancies.
17. Traditionally, large businesses post lower layoff rates
8. The Job Vacancy and Wage Survey does not collect
(Picot et al. 1997; Bernard and Galarneau 2010) and
information on the total duration of job vacancies.
better employee retention rates (Morissette et al.
Consequently, a position that was vacant for less than
1992) than smaller businesses.
15 days is not necessarily a position that was filled in
15 days—this merely indicates how long the position 18. In 2016, workplaces with less than 20 employees
had been vacant on the day of the survey. The position accounted for 86% of workplaces in Canada. This
may have been filled several weeks later. However, it explains why one-third of vacant positions are at this
is reasonable to assume that the position was filled type of workplace despite the low proportion with at
shortly thereafter and did not remain vacant for 90 least one vacancy.
days. Burdett and Cunningham (1998) calculated that
72% of job vacancies were filled within two weeks, 19. Akyeampong (2006) indicates that establishments with
and 98% in 90 days or less. Adams et al. (2002) show 500 employees or more were much more likely to
that 92% of vacant positions were filled in 12 weeks require medical exams, background checks and drug
or less. Data from other studies indicate that vacancies testing than smaller workplaces.
lasting 90 days or more are a clear sign of personnel 20. See Barron et al. (1985); van Ours and Ridder (1991);
recruitment challenges. Gorter and van Ommeren (1999).
Statistics Canada — February 2018 Insights on Canadian Society / 13Long-term job vacancies in Canada
21. See Barron et al. (1985). 27. In 2016, the average hourly wage in Canada was
$25.72.
22. See van Ours and Ridder (1992); Barron et al. (1997).
28. See Adams et al. (2002); DeVaro (2005); Sabatier
23. See Blau and Robins (1990).
(2010).
24. A significantly higher probability was also observed for
29. See Barron etal. (1997); Sabatier (2010).
occupations in sales and services, as well as those in
trades, transportation and machinery when other risk 30. See Barron et al. (1985); Barron and Bishop (1985);
factors were taken into account. Barron et al. (1997).
25. Occupations in natural and applied sciences accounted
for 37% of vacant positions in this sector in 2016.
26. It is important to keep in mind that the figures given
are for wages offered and not those negotiated and
confirmed in an employment contract between the
employer and employee. These amounts do not include
bonuses or other financial benefits related to the job, or
non-wage benefits (e.g., dental insurance), which may
be paid in part or in full by the employer.
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