||By David O’Brien,
Vice President, East Region & Government Services at Eagle
Amazon has Chosen Ottawa!
That’s what they call the attention grabber! Though the title is true, it’s not the highly publicized Amazon HQ from October 2017, but rather a large logistics warehouse. Despite it not being the “Amazon Jackpot” we all heard about, it will nevertheless produce 1000 good, middle class jobs.
Traditionally, the Ottawa job market has been driven by the Federal Government and it’s by far the single biggest employer. But news like the Amazon warehouse has started some exciting conversations locally about the increased activity seen in Ottawa’s Private Sector. Ottawa’s high tech sector, once the pinnacle of the late 90’s/early 2000 economic boom, which led to Ottawa being referred to as Silicon Valley North, is now pared down. However, it is still led by the mighty $15 billion dollar global electronic commerce star, Shopify. The bulk of the company is in Ottawa and has been on an ever expanding hiring bonanza for several months now. Other high tech companies, albeit much smaller but not insignificant, like You.i TV ,Klipfolio , Kinaxis and Mindbridge AI have also driven up hiring in the high tech sector.
All of this is good news for the Ottawa economy, but the government or more broadly the Public Sector is still the straw that stirs the drink. The Trudeau government has been on a hiring frenzy since 2015. We already know that the Public Sector in Ontario has created 5 jobs to every 1 in the Private Sector for the last several years, but whether that is a sustainable formula is a topic for another day (Hint: it’s not)!
The broader Public Sector in Ottawa, in addition to the Feds, include the City that employs 20,000 employees, the universities with 12,000+, and the hospitals with another 11,000. These are all jobs that tend not to disappear, quite the opposite in fact. All of this has contributed to a blazing hot unemployment rate of 4.4% in May, the lowest in over a decade. The unemployment rate in tech, though not specifically measured, would be a mere fraction of the overall rate.
The Feds have added 1900 jobs in April alone. Shared Services Canada (SSC) is the most prominent having added 300+ in the last year. We know many of these jobs have been life time contractors converting to FTE’s in the Government. This caused a level of concern for many IT staffing agencies in Ottawa, as they suffer both a loss of revenue and the scarcity of quality candidates becomes even more exacerbated.
At Eagle, the greatest demand in Ottawa in the last quarter as been in these categories:
- Project Manager
- Database Administrator
- Systems Analyst