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Canadian firms’ plans to increase employment are less widespread than they were in the previous quarter have declined, the Bank of Canada’s Autumn Business Outlook Survey suggests.
Firms continue to plan employment increases in the next 12 months; however, the balance of opinion has declined considerably from the level reported in the summer survey.
Forty-four percent of firms surveyed expect their level of employment for the next 12 months to be higher than in the past 12 months, 39 percent expect no change, and 18 percent expect lower employment levels. Intentions to increase employment softened in all regions.
Some firms cited productivity gains from recent capital projects, efforts to reduce costs or demand conditions as factors influencing their hiring decisions. Additionally, business activity expectations have weakened in the environment of slow global economic growth and uncertainty about demand.
The bank surveyed senior managers from about 100 firms from Aug. 27 to Sept. 20.