Economic indicators are increasingly pointing to the beginning of the end of the so-called Great Recession. As economic growth gains traction, underlying long-term labour market trends are likely to increase in prominence.

One such trend is the much discussed, looming Baby Boomer retirement. This enormous withdrawal of workers will likely be a major influence in the direction of the labour market for at least the next two decades. For starters, the sheer number of retirees almost guarantees that Canadian labour force growth will slow dramatically. At the same time, immigration will account for the vast majority, if not all, of any further growth in the labour market. Simply put, the Canadian labour market will be shrinking and becoming more diverse at the same time.

These coming trends will be both significant and long-lasting. Employers will accordingly have to find effective ways to adapt. Otherwise, organizations could find it increasingly difficult to continue to both attract and retain talented employees. This is primarily because employers will no longer be able to rely on an abundant pool of talented workers from which to choose from. As a result, traditionally underemployed groups such as women and the disabled will become increasingly central to managing labour shortages.

So how do employers prepare for the coming changes? One way is for organizations to create and nurture cultures which are both open and inclusive. Employers should consider expanding beyond their traditional comfort zones in order to find the talented workers that can drive their business forward. Well-designed workplace policies can also assist as frameworks to guide workplace activity in a manner which contributes to an environment of tolerance. Such early initiatives can help significantly in ensuring that organizations have the most talented and adaptable workforces vis-à-vis their competitors.

Sharaf Sultan

In the last two weeks we have seen a number of new clients who have been offered jobs and want our legal services to review the contracts.

Prior to the market crash in 2008 this was common, but after the fall of 2008, the number of these requests fell dramatically and has remained low.

The recent increase in the number of new contract reviews suggests that the market may be recovering and that hiring is starting to return. Unfortunately, we are also seeing a number of terminations, which remained high throughout February. This suggests that the marketplace may still be in transition.

While we start to move from recession to recovery, employers and employees should remain mindful that a good employment contract is often the best way to avoid disputes during the relationship and/or when it ends.

Certainly when someone is hired, we don’t want to talk about what would happen if things don’t work out. However, that approach only postpones what could be a litigious ending. Employers and employees should agree on what occurs on termination before that event occurs. This includes not only outlining what notice is owed to the employee if he/she is terminated, but also how much notice prior to resignation the employer needs should the employee choose to depart.

James Heeney