A rebound in economic growth in the second quarter and solid growth expectations bode well for employment prospects this year in Canada, according to BMO Economics and a BMO Bank of Montreal hiring report released today. Overall, 26 percent of Canadian firms surveyed plan to expand their workforce, including 55 percent of businesses with 50 employees or more and 24 percent of organizations with fewer than 10 employees.

According to BMO Economics, businesses in the manufacturing sector plan to increase net hiring 18 percent this year; the service sector expects a 17 percent net hiring increase; and retail looks for a 7 percent net hiring increase.

“Service-sector job growth has been much stronger than manufacturing sector job growth in the past year,” said Robert Kavcic, senior economist, BMO Capital Markets. “Looking ahead, we expect manufacturing and export-related industries to pick up on the back of stronger U.S. demand and the lagged impact of the weaker loonie [Canadian dollar]. Exports climbed 1.1 per cent in June and the upward trend can support an increase in Canadian employment levels.”

Kavcic noted that service-sector employment should remain sturdy, especially in the sectors of professional and business services, healthcare and education. However, retail and construction employment could lose momentum.

Business owners in Alberta are most likely to add jobs; 35 percent of Alberta business owners plan to increase the size of their workforce, followed by Atlantic Canada at 32 percent.

Business owners in the Prairies expect the least change; 70 percent plan to keep the size of their workforce the same. British Columbia follows, with 66 percent expecting no change.

The report was conducted between March 7 and March 24, 2014, via a Pollara survey that included 502 Canadian business owners.