Canadian employers see slower hiring, slightly higher terminations this year
The overall number of terminations of hourly and salaried positions in Canadian small businesses surpassed the 70,000 mark as of December 10, according to data from payroll provider Wagepoint.
In an analysis of aggregate data of 30,595 small businesses across Canada, Wagepoint found that there have been 70,895 terminations of hourly and salaried positions from January 1 to December 10 this year.
Over the last three years, the most cited reason for termination is quitting with 57,584, including 12,107 who said they left to pursue another job.
Other reasons include:
- Shortage of work/end of contract or season (56,382)
- Dismissed or terminated within a probationary period (7,644)
- Return to school (5,178)
- Start a new business (648)
Trends for terminations
The terminations so far remain below the 85,832 terminations recorded for hourly and salaried positions in 2022. But they are already above the 66,588 terminations recorded in 2021.
Small businesses are currently facing the challenge of "slower hiring and slightly higher terminations" for the second half of 2023, said Shrad Rao, CEO of Wagepoint.
"But trends can quickly change, we are betting on the grit, determination, and resilience of Canadian small businesses to find a way to thrive in 2024.”
Employee terminations by age group
In the first half of 2023, there were 11,454 nationally terminated hourly workers among individuals aged between 20 and 29. For other age groups:
- 50+ (6,371)
- 30 to 39 (6,005)
For salaried positions, there were 3,661 terminations for individuals between ages 30 and 39 years old. For other age groups:
- 20 to 29 (2,834)
- 50+ (1,734)
Top terminators
Ontario emerged as the top terminator across Canada, according to Wagepoint data.
Over the three-year period, Ontario logged an average number of 28,132 for hourly terminations. It also recorded the highest average for salaried terminations with 11,142.
Following Ontario, the following locations logged the highest average number of hourly terminations:
- British Columbia (9,772)
- Alberta (6,664)
- Quebec (3,335)
- Nova Scotia (2,334)
In terms of salaried terminations, the following locations came after Ontario:
- British Columbia (2,802)
- Alberta (2,196)
- Quebec (1,483)
