More hiring to take place in 2012

In the latest indication that Canada's economy continues to perform well, an increased number of employers plan to do more hiring and recruiting for their companies, a new report suggests.

According to job listing website CareerBuilder and a recent job forecast survey it conducted, for a third-straight year, businesses in Canada plan to add to their payrolls, with some of the most significant hiring to take place in the information technology sector. The report indicates that 37 per cent of IT firms are looking to add jobs this year as they put a greater focus on the steps necessary to increase innovation.

Other sectors that anticipate high levels of recruitment include administrative companies at 32 per cent, engineering at 27 per cent and accounting at 26 per cent.

Brent Rasmussen, president of CareerBuilder North America, said Canada is proving to be the exception to the rule, as most countries throughout the world are trimming their staff levels due to economic difficulties.

"Even as the global economy continues to struggle, Canada is expected to add jobs at a steady pace in 2012," said Rasmussen. "Our survey data and increases in job postings on CareerBuilder.ca indicate that companies will hire in functional areas that support the efficiency of their business, such as IT, engineering and administrative positions."

The survey also detailed that more than a third of employers - 34 per cent - anticipate hiring full-time employees, up slightly from 32 per cent from last year. Meanwhile, 18 per cent say their hiring will mostly be for part-time positions, which is down marginally from 20 per cent in 2011.

Expanding work forces and sales may lead some companies to review their business insurance policies, as larger facilities and operations may carry more risk.

Something else that may be driving employers to heighten their recruitment efforts are concerns about workers leaving their jobs, as 57 per cent of businessowners indicate this is a concern. To encourage their present employees to stay, 75 per cent said they will likely raise compensation levels for their present workers within the next 12 months..

Employers' concerns about their current staff leaving may also help explain why businesses' sense of optimism is not as high as it has been in recent years. According to the Canadian Federation of Independent Business, small business confidence totaled 63.7 in November on its Business Barometer index, a slight rise from the previous survey.

"This level is still lower than normal, however, as overhanging concerns about the potential spread of economic weakness out of Europe appear to be still at play," said Ted Mallett, vice president and chief economist for CFIB.

He added that while the index may indicate Canada's economy is functioning at a slower pace, it should not suggest the country is headed toward a recession.

Meanwhile, among the provinces, optimism appears to be particularly robust in Saskatchewan, which registered a 74 on the CFIB's index. Measured on a scale of 0 to 100, any score above 50 indicates more businessowners expect stronger performance levels within the next year.