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All Talent Development Centre posts for Canadian technology contractors relating to business in Canada.

Canada’s Small Business Tax Changes from the New Federal Budget


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Morley Surcon By Morley Surcon,
Vice-President, Western Canada at Eagle

Canada's Small Business Tax Changes from the New Federal BudgetI thought I would write this blog entry as a follow up to another that I’d written a number of weeks ago entitled, “Canada’s Proposed Tax Changes for Small Business” where I encouraged the contracting community to take notice, get educated and have their voices heard.  With the presentation of the new Federal Budget, these are no longer “proposed changes” but are, in fact, the new reality of the corporate tax system and its policies.

What was presented was a good news/bad news story for the small business owner. Finance Minister Bill Morneau was forced to consider the backlash from the policy changes that he and his government proposed several months ago, resulting in a somewhat softened stance when it came to Small Business Tax policy.  The final policy, presented along with the rest of the Federal Budget, took some of the sharp edges off their plans for reform, but it will still have its impact felt by the small business owner.

The following are some of the take-aways from the new budget as it pertains to Small Business Taxes and their implementation:

  • Income splitting has now been addressed and curtailed
  • New passive income taxation rules won’t have much of an effect on newer businesses or very small businesses starting out; but will impact older, better established and/or highly successful businesses whose passive earnings are already built up and substantial. Any company earning $50,000 or less in passive income will qualify for the Small Business Tax Rate but, once more passive earnings are reported, the tax rate will gradually increase until the point where passive income equals $150,000 (or more) and at that point passive income will be taxed at the General Corporate Tax Rate levels.
  • A concern that is getting a lot of attention is the widening gap between Canada and the USA’s corporate and personal tax environments. With the new tax reforms south of the border, there is a more significant tax advantage in doing business as a US-based entity; and this provides their companies with economic advantages over Canadian businesses. Investment becomes more difficult to attract which impacts Canadian companies’ ability to innovate and build. Moreover, there is a growing fear that mobile professionals such as doctors, scientists and technology professionals may choose to relocate state-side to take advantage of higher wages (paid in US$) and lower taxes.

There’s quite obviously a lot more to it than the above three points.  You can read more about it by following the links below:

If you have ideas, comments or opinions about the new Federal Budget that you would like to share with our readership, please leave a comment below!

What Stats Canada Says About Canadians and Digital Technology


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When we reference Statistics Canada, it’s usually in regards to unemployment rates and stats around job trends that are important for any employer or job seeker to know. Of course, Stats Canada does more than track job trends. Among the many items they track, they keep a close eye on technology, where it’s going and how Canadians are interacting with it.

Towards the end of 2017, Stats Canada released this infographic discussing The Internet and Digital Technology. We can use it to draw many conclusions, although there is nothing extremely new. Canadians are continuing to use technology to improve their lives for many reasons and the younger generations are embracing it more. The infographic can pull you in further when you start reviewing the specific stats and trends about the types of devices used and their popularity, as well as the popularity of the Internet across Canadian provinces.

2018 is Looking Great for Jobs in Canada… What Does That Mean for Employers?


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David O'Brien By David O’Brien,
Vice President, East Region & Government Services at Eagle

As we head into the New Year, the economic news across the country, especially as it relates to employment and jobs in Canada, would strongly suggest we are at or close to peak full employment in Canada. While some regions are more active than others, we are seeing in many cities and provinces the lowest unemployment recorded in over 40 years! Canada created over 422,000 jobs last year, the best year since 2002, and many are full time. Quebec is at a record low 4.9%, plus Ontario and the West are also performing.

2018 is Looking Great for Jobs in Canada... What Does That Mean for Employers?Further economic indicators point to and back up this booming jobs market as wages have begun to creep up, a sure sign of a tight labour market. The Bank of Canada increased its rate a quarter point early this month, the 3rd increase since last July. The US economy looks to be also firing on all cylinders with recent massive tax changes which will only serve to increase the Canadian export economy provided a certain “very stable genius” doesn’t cancel NAFTA.

Here at Eagle, we are undoubtedly experiencing the effects of such a market in seeing a shortage of available candidates, candidates receiving multiple offers and down time between assignments being very short or non-existent. The ACSESS Staffing Index, a measure of billing hours in Canada among temporary labour, bears this out as it hits some of its highest levels in years. We also know that the “Technology” unemployment rate in Canada is likely less than half the nominal rate, likely in or around 2%.

Recent conversations with both the Federal Government and Ontario government suggest a looming crisis in attracting the next generation of technology professionals so desperately needed as their workforce ages out.

So what can clients, companies and governments do to thrive in a very tight job market? Here are a few suggestions meant to help navigate successfully to get the right people at the right time.

  • Review your hiring processes to be sure they are tight and efficient. Accelerate your hiring process where you can. Candidates with multiple offers — the “A” candidates — will not be available through an extended interview or hiring process in this market.
  • Hiring Managers need to review expectations. Many skills will not see multiple candidates to assess and therefore be sure you prioritize your “must have criteria” as the days of a candidate having 10 out of 10 requirements may no longer be realistic.
  • Work with your agency partners. Ensure a good and accelerated feedback loop exists, be proactive with your staffing partners on upcoming needs, be nimble on offers, and review competitive rates and salaries with your agency partners and others in the market to be sure your expectations align.
  • Make sure you understand your value proposition as a company to attract “A”candidates and articulate it to your partners so that we can help you. Know your organization’s “sizzle and its steak “. Understand your market, your comp structures and skills availabilities in your market and engage your staffing partners to fill in the gaps
  • It’s not the time to “overplay” your hiring hand. The market has changed and being slow to the market will not reward you. Be flexible. You will need valued partners because all but a very, very few elite companies will need help since the days of advertising an opening and sitting back to see what comes are gone

There will always be other ongoing events to stay abreast of, for example Toronto recently making the “shortlist” for the new Amazon HQ, (a move Apple no doubt is now likely to repeat). Although chances are slim they ultimately win, imagine if they did. It would present a huge game changer and competition for not only all of Toronto’s employers but many in Canada as well!

Organizations can still get the “A” candidates if they take to heart some of these and other suggestions and adapt to the marketplace. If not, it’s going to be costly with C and D level candidates.

Quarterly Job Market Update Across Canada – Q3 2017


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Kevin Dee By Kevin Dee,
Chairman of the Board at Eagle

General Observations:

The unemployment rate at the end September was 6.2%, an improvement from the 6.5% unemployment rate at the end of June.  During the previous 12 months, Canada added 320,000 jobs (almost 289,000 full time).

For the purposes of this report I focus on the TSX and during the third quarter it returned to the Q1 level just above 15,600, a gain of about 500 points.

The oil patch continues to struggle, with the price of a barrel hovering in and around the $50 a barrel range.  The continued lack of support from the various levels of government has led to the cancellation of the Energy East pipeline.  This will mean (a) lost jobs, but also (b) reinforce a message to the investment community that Alberta oil is not a good investment.

The Canadian dollar has been relatively strong lately and in the third quarter ranged between 78c US and 82c US.

There is little change in the banking sector, which is one of the bigger employers in Canada.  The talent demands for the banks address areas such as regulatory changes, new product development, new service offerings and addressing the aging workforce.  On the other side, new technology and offerings also displaces some of the roles traditionally found at the banks.  The banks remain a good place to find employment, but increasingly the skills needed are specialised.

The telecommunications sector is another large employer in Canada.  Like the banks, this sector is operating in an environment affected by new technological change, demographic pressures and regulatory change in addition to extreme competition.  While they demand the best talent in order to compete, they are also careful about keeping employment costs under control, particularly as they are also acquisitive, which can mean a big focus on integration of acquired companies.  Some of the drivers of demand here include the highly competitive nature of the business, investment in infrastructure, technological innovation and a need to plan for a retiring “Boomer” workforce.

The US economy continues to add jobs, and over the third quarter averaged about 90,000 new jobs per month.  The demand for skills in the US is luring talent from Canada which is good for the individuals but not so good for Canada in the long term.

The demand for the “trades” continues unabated, as the construction industry seems to be forever busy.  Cranes dot the skies of Canada’s largest cities, and home renovation projects are hard to staff!

The three levels of government in Canada are big employers.  As an example almost all of the jobs added in Canada in September (about 100,0000) can be attributed to public sector jobs.  Clearly the increased government spending is not a boon for the economy, but good for those looking for public sector jobs.

The Canadian Staffing Index is an indicator of the strength of the largest provider of talent in any economy (the staffing industry) and an excellent barometer of the health of Canada’s economy. The reading at the end of the second quarter was 114, which was up from 110 last quarter, and also 110 in Q3 last year.

Here at Eagle, we experienced an expected drop in demand over the Summer months, of about 10% from the second quarter however demand was up 10% over the same quarter in 2016.  There was a corresponding drop in people looking for work over the Summer months.

More Specifically:

The Greater Toronto Area (GTA) is Eagle’s busiest region, representing about 60% of our business.  It is also the 4th largest city in North America, containing more than 50% of Canadian head offices and with a population of approximately six (6) million.  This market continues to be one of the busiest markets in Canada, and we see strong demand from our clients for skilled talent.  There is some concern that new legislation from the Ontario Government (Bill 148) will have a negative effect on the temporary help market in particular.

Western Canada continues to struggle, receiving little help from our Federal government and not helping themselves much at the provincial level.  The cancelling of the Energy East pipeline was a tough blow for the region and optimism in the oil patch is low.  While the Conference Board had expected Alberta to be the fastest growing province in Canada for 2017 I doubt we will see that happen.  The BC economy continues to do well despite the concerns about legislation to curb foreign investment in real estate.

Eagle’s Eastern Canada region covers Ottawa, Montreal & the “Maritimes”.  Ottawa is very much a government town again, although there are some smaller tech companies rising from the ashes of Nortel, JDS and the previously large tech sector. The government continues to employ a lot of people (22,000 more in The NCR since the Liberal government took office) but despite significant Federal government hiring the unemployment rate in Ottawa has been a concern.  Quebec appears to be enjoying a renaissance as its unemployment rate is now better than Ontario’s, in addition to having healthier finances.  They have been able to attract industries (such as large data centres) to help the economy and add jobs.  It doesn’t hurt that their hydro rates are very competitive as opposed to Ontario’s situation.  The Maritime Provinces don’t represent a great opportunity for the job seeker, however PEI and Nova Scotia are both showing signs of an improving economy.

The Hot Client Demand.

At Eagle our focus in on professional staffing and the people in demand from our clients have been fairly consistent for some time.  Program Managers, Project Managers and Business Analysts always seem to be in demand. It might just be our focus, but Change Management and Organizational Excellence resources are in relatively high demand too. Digital, big data, data scientists, analytics, CRM, web (portal and self-serve) and mobile expertise (especially developers) are specializations that we are seeing more and more. On the Finance and Accounting side, we see a consistent need for Financial Analysts, Accountants with designations and public accounting experience plus Controllers as a fairly consistent talent request. Expertise in the Capital markets, both technical and functional, tends to be a constant ask in the GTA.  Technology experts with functional expertise in Health Care is another skill set that also sees plenty of demand.  This demand fluctuates based on geography and industry sectors, so we advise candidates to watch our website and apply for the roles for which they are best suited.

Outside of Eagle’s realm some of the in-demand skills include the classic tradespeople, drivers, and new tech skills like Artificial Intelligence, Robotics, video gaming skills etc.

Summary:

There are numerous good indicators for Canada’s economy and hence job seekers, but there are also some challenges on the horizon:

  • NAFTA re-negotiations may have a negative impact on our economy;
  • We don’t yet understand all the implications of the Energy East project being cancelled;
  • January in Ontario will see the introduction of Bill 148, a severe increase in minimum wage plus new labor laws that will hurt business and cost jobs;
  • January we will see the introduction of new carbon taxes in Ontario;
  • Our Federal Government is introducing new tax changes affecting small business, possibly to help pay for their out of control spending;
  • At the same time that Canada is raising taxes, the US is encouraging small business through tax breaks, which may well cost Canada as some companies will be forced to go where they can make money.

If all of this goes ahead, then we will see a big impact on the job market.

Canada added 320,000 jobs in the last year which is good news for today’s job seekers.  The BIG elephant in the room is whether the factors listed above will conspire to undermine our economy and create a government driven recession.

For job seekers there remain the bright spots, caused by demographic shifts (retiring Baby Boomers), jobs moving to Canada from more expensive places like Silicon Valley and companies developing new technologies.  The large employers, such as banking sector, insurance sector, retail sector, telecommunications sector and the construction industry will always require large workforces representing job opportunity. The growth of the “gig economy” creates new opportunities for people to define their own destiny and become mini-entrepreneurs, or build new enterprises.

The effect of US policy changes by the Trump administration remain to be seen.  Having said that, some possible impacts include immigration (positive for Canada); trade agreements & protectionist policies such as the NAFTA negotiations (possibly negative for Canada); and defense (possibly negative for Canada) all having some impact.

Job seekers should research and understand the growing sectors and where the in-demand jobs are.  They also need to be willing to go where the work is!  If I was looking for work I would be moving to the larger centres, investing in in-demand skills and increasing my marketability with the right “attitude”.

That was my look at the Canadian job market for the third quarter of 2017 and some of its influences.

Quarterly Job Market Update for Q4 2016


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Kevin Dee By Kevin Dee,
Chairman of the Board at Eagle

This post first appeared on The Eagle Blog on January 20th, 2017

Canadian Job MarketGeneral Observations: 

From a jobs perspective 2016 finished much as it started, most markets were okay but not great and the oil and gas space was “hurting”.  The oil patch has been hurt not only by the low price of a barrel, but also by the political uncertainty introduced by both provincial and Federal governments that crushes any investment possibilities from private enterprises.  There has been some positive momentum associated with the upcoming Trump presidency, so we shall see how that plays out in the coming months and years.  The Canadian dollar continues to hover around the 75c US mark which makes it more expensive for imports, and Canada imports more than it exports.

The unemployment rate at the end of the year was 6.9%, a slight improvement over the 7% at the end of September, and even better than the 7.1% of this time last year.  During the previous 12 months Canada added 214,000 jobs although the majority of these were part time jobs.

TSXThe stock market continues to be relatively volatile, but perhaps that is the new norm.  For the purposes of this report I focus on the TSX and it has enjoyed a reasonable period of growth over the last year, ending 2016 at around 15,300 points which was currently at around 15,000 points which was more than 200 points better than it ended last year.

picture of an oil rigAs already mentioned the oil patch continues to take a pounding and we don’t anticipate much positive change before 2018.  With oil settling at around $50 a barrel we are not likely to see the start of any major projects although there is some optimism that most of the “bleeding” is done.  Alberta will not attract much private sector investment in the current political climate, particularly when almost any other jurisdiction outside of Canada is more business friendly.

Canadian dollar the LoonieThe Canadian dollar finished 2016 at around 75c US, as opposed to the 70C US it was a year ago.  A weaker dollar is good for the oil patch because they sell in US dollars and most costs are in Canadian dollars.  It is also helpful to our manufacturing sector, because finished goods exported with a weak dollar mean a better profit margin.  However importing raw materials becomes more expensive and generally Canada imports more than it exports so overall a weak Canadian dollar is not good for Canada.

The banking sector is one of the bigger employers in Canada, and the Canadian banks have fared well this year with their stock prices riding high.  They are also prudent money managers and have been very careful with their hiring.  They take full advantage of technology which can mean a reduction is client facing staff as e-banking continues to grow and  even their technology projects have seen very careful hiring this year,

The telecommunications companies are other big employers in Canada and are also very cost conscious.  While they demand the best talent in order to compete, they too, are also careful about keeping employment costs under control, particularly as they are also acquisitive, which can mean a big focus on integration of acquired companies.  Some of the drivers of demand here include the highly competitive nature of the business, investment in infrastructure, technological innovation and a need to plan for a retiring “Boomer” workforce.

The US economy continues to add jobs, but at a reduced rate of about 150,000 per month.  The demand for skills in the US will lure talent from Canada which is good for the individuals but not so good for Canada in the long term.  What has not happened, and is different from previous economic times, is that Canada’s economy has not improved along with US economy, which is one of the indicators of our “new normal” environment.

ConstructionThe construction industry seems to be forever busy, to which anyone trying to get work done will attest.  Despite the slowdown in the big jobs like the oil sands, there appears to be a constant demand caused by infrastructure upgrades in many of our cities and we have the promise of more such work funded by our growing national debt (was that my out loud voice?).

Parliament building in OttawaThe three levels of government in Canada are big employers.  Municipal, provincial and Federal governments employ a lot of people and with the current Federal government it was expected their ranks would grow.  There has been some growth in the Federal payroll, about 40,000 in 2016 but it was expected to be more.  All of these governments are dealing with the issue of a fast retiring upper echelon.  The pensions are so lucrative that large numbers of civil servants are eligible for, and invariably take, retirement at a very early age.  This will create opportunity for new jobs, but will also result in a significant brain drain from our government.

The Canadian Staffing Index is an indicator of the strength of the largest provider of talent in any economy (the staffing industry) and an excellent barometer of the health of Canada’s economy. The reading at the end of 2016 was 96, as opposed to 98 a year earlier.  While that appears to be a drop, it is in effect negligible because there were less work days in December 2016 than a year earlier.

Eagle LogoHere at Eagle we experienced a 10% drop in demand from our clients in 2016 as opposed to 2015.  We also experienced a 4% increase in people looking for work.  This really tells the tale of the Canadian economy in 2016, there are less jobs and more people looking.   Eagle’s world is primarily in the technology space, and while we expect things to pick up in 2017 we expect to see skills shortages start to add to Canada’s economic problems.

 More Specifically:

cn tower The GTA is Eagle’s busiest region, representing about 60% of our business.  Not surprising given its boast as the 4th largest city in North America, containing more than 50% of Canadian head offices and with a population of approximately six (6) million.  This market has remained one of the busier markets in Canada, yet has not been as buoyant as previous years, with banks, telcos and provincial government all just a little slower with their hiring.   We anticipate things to pick up in 2017 and demand for skilled resources to increase substantially.

Eagle’s Eastern Canada region covers Ottawa, Montreal & the “Maritimes”.  While there is a better mood amongst the Federal civil service under the Trudeau government, I can’t say that I share their optimism given his focus on anything but job creation.  We do expect a decent level of demand in the Federal government in 2017, with necessary projects requiring expertise and the steady flow (certainly more than a drip) of talent retiring.  Quebec is enjoying its lowest unemployment rate in some time, and Montreal remains the hub of that activity.  We anticipate that to continue in 2017.  The Maritime Provinces continue to struggle to create employment and we don’t expect much change there.

The Saddledome in CalgaryWestern Canada is of course comprised of the oil patch in Alberta and the rest.  Some provinces have fared better than others, with certainly Alberta taking the brunt of the hit because of its resource based employment.  BC was actually the fastest growing province in Canada in 2016, and Saskatchewan has fared better than other provinces with a business friendly government.  The outlook for Alberta in 2017 is better, but not exciting.  The other provinces should see a reasonable increase in jobs.

The Hot Client Demand.

At Eagle our focus in on professional staffing and the people in demand from our clients have been fairly consistent for some time.  Program Managers, Project Managers and Business Analysts always seem to be in demand. It might just be our focus, but Change Management and Organizational Excellence resources are in relatively high demand too. Big data, analytics, CRM, web (portal and self-serve) and mobile expertise (especially developers) are specializations that we are seeing more and more. On the Finance and Accounting side, we see a consistent need for Financial Analysts, Accountants with designations and public accounting experience plus Controllers as a fairly consistent talent request. Expertise in the Capital markets, both technical and functional, tends to be a constant ask in the GTA.  Technology experts with functional expertise in Health Care is another skill set that also sees plenty of demand.  This demand fluctuates based on geography and industry sectors, so we advise candidates to watch our website and apply for the roles for which they are best suited.

 Summary:

The last year was a tough one in the Canadian economy and we will continue to face challenges into 2017, with carbon taxes, a struggling oil patch, a resurgent but protectionist US economy under Donald Trump and a Federal government more interested in the environment, foreign aid, being recognised on the world stage and anything other than creating a business friendly atmosphere in Canada.

On the plus side for job seekers, there will be growth opportunities afforded by a growing number of retirees requiring replacement, and some sectors that will grow … some which we believe will be the telecommunications, technology, construction, government and the financial sector.

That was my look at the Canadian job market for the final quarter in 2016 and some of its influences.

IT Industry News for October 2016


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Kevin Dee By Kevin Dee,
Chairman of the Board at Eagle

This post first appeared on the Eagle Blog on November 10th, 2016

Tech News HeaderThis is my 30,000 foot look at events in the ICT industry for October 2016. What you see here is a précis of the monthly report I produce, which will be available in more detail at the News section of the Eagle website, where you will also find back issues.

A Little History of previous year’s Octobers …

Five years ago in October 2011 an industry icon, Steve Jobs passed away and IBM announced Virginia Rometty as their first female CEO.  On the M&A front Oracle made a couple of buys, including RightNow Technologies ($1.5 Billion) and Endeca Technologies; Sony bought Ericsson out of their Sony Ericsson joint venture ($1.5 Billion); Red Hat bought storage company Gluster ($136 million); and Cisco bought BNI Video ($99 million).  The October 2012 news was dominated by Hurricane Sandy and the US presidential election.   The big deal of the month was a $1.5 billion merger of two US cell EMC logocarriers, T-Mobile and MetroPCS.  There were also a number of smaller deals, with EMC beefing up in the security area (Silver Tail), Telus expanding its medical solutions portfolio (Kinlogix Medical) and Avnet improving its IBM capabilities (BrightStar and BSP).  In the social networking world Yelp bought its European competitor Qype in a $50 million deal.  Three years ago, October 2013 was not a dynamic M&A month, although there was certainly some activity.  Oracle announced two acquisitions, both “cloud based companies: Big Machines provides pricing and quote date for sales and orders; and Compendium is a content marketing company.  Other “names” out shopping included Avaya buying the software division of ITNavigator for its call centre and social media monitoring software; Rackspace bought ZeroVM a tech company with a software solution for the cloud; Intuit bought consulting company Level Up Analytics, primarily to acquire its talent; VMWare bought “desktop as a service” company Desktone; Netsuite bought human capital software company TribeHR; and Telus enhanced its mobile offering with the HP logopurchase of Public Mobile.  In October 2014 we saw a new trend, with two public companies both choosing to split into smaller entities.  HP announced it was creating a business service focused Hewlett-Packard Enterprise and personal computing & printer company HP Inc.  Symantec also chose to split into two independent public companies, one focused on business and consumer security products, the other on its information management portfolio.  Other interesting news saw IBM pay $1.5 Billion to GlobalFoundries so it would take away its money losing semiconductor manufacturing business.  NEST bought out competitor Revolv; EMC bought three cloud companies, The Cloudscaling Group, Maginatics and Spanning Cloud Apps; and in Korea, Kakao and Daum merged to form a $2.9 billion dell logointernet entity.  Last year October 2015 brought some big deals with the biggest seeing Dell offer $26 billion to buy storage company EMC.  Interestingly an EMC subsidiary, VMWare was also out shopping, picking up a small email startup, Boxer.  In another deal involving “big bucks”, Western Digital paid $19 billion for storage competitor Sandisk.  IBM were also writing a big cheque, paying $2 billion in a big data/internet of things play for The Weather Network (minus the TV operations), and IBM also picked up a storage company, Cleversafe.  Cisco paid $522.5 million for cybersecurity firm Lancope; LogMeIn paid $110 million for LastPass; Trend Micro paid $350 million for next generation intrusion prevention systems company HP Tippingpoint; Red Hat picked up deployment task execution and automation company Ansible; Vasco Data Security paid $85 million for solution provider Silanis; and Apple bought a speech processing startup, VocalIQ.  As industries converged it was interesting to see Securitas pay $350 million for Diebold’s US Electronic Security business.

Which brings us back to the present …

Just like four years ago October 2016 news has been dominated by the US Presidential election … and of course the upset happened!  Maybe the election is why the M&A market was slow this month?  Not much in the way of deals, with one BIG deal seeing Qualcomm Google signpay $47 Billion for NXP Semiconductor.  The only other sizable deal saw Wipro pay $500 million for IT cloud consulting company Appirio.  Google picked up Toronto based video marketing startup FameBit and Pivot Technology Solutions picked up Ottawa based Teramach … and that was about it for October.

Other news saw Google step into the smartphone world with the release of Pixel, at a time Twitter logowhen wireless use in Canada is more than 50% of telecom revenues, however that is a crowded and hyper-competitive space so it will be interesting to watch.  Twitter announced layoffs plus the fact it will be shutting down the video service Vine.  Lastly HP Inc. also announced layoffs in its plans.

Despite all of the hype and vitriol of the presidential campaign, most indicators that were based on numbers were reasonably positive.  A couple of subjective indices (measuring confidence) were down, but nothing crazy.  There were also numerous reports from IDC and Gartner this month with predictions of growth in many tech sectors including total IT spend, cloud spending, security spending etc.  About the only areas that are trending down are PC sales which is no surprise and smartwatches, which is a surprise.

I would be remiss in my husbandly duties if I did not point out Janis Grantham’s inclusion in the 2016 Global Power 100 — Women in Staffing list.

I also found it surprising that it is five years since Steve Jobs passed away, it just doesn’t seem that long ago.

That is my update on tech news for October 2016 … until next month, stay positive, walk fast and smile!

Quarterly Job Market Update for Q3 2016


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Kevin Dee By Kevin Dee,
Chairman of the Board at Eagle

This post was originally published on the Eagle Blog

General Observations:

The third quarter of 2016 continued the “new normal” for Canada’s economy, which was not a positive thing!  Until oil prices get up into the $70+ range, consistently, we are unlikely to see a recovery in the very important oil sector.  Interest rates remain low but need to edge up in anticipation of the next recession, but the mere suggestion of interest rate increases causes a weakening in the markets.  The US economy continues to improve, but we are not seeing the expected “pull through” that we have seen in the past.  The Canadian dollar hovers around the 75c US mark which makes it more expensive for imports and Canada imports more than it exports.

The unemployment rate at the end of the third quarter was 7% which was a 0.2% worse than the 6.8% of Q2, but slightly better than the Q1 rate of 7.1%.  During the previous 12 months Canada added 139,000 jobs which was 21,000 more than the 12 months up to last quarter.  In a sign of our changing times, the majority of these were part time jobs.

The stock market continues to be volatile, and is one of the sources of concern for the Bank of Canada.  For the purposes of this report I focus on the TSX and it has enjoyed a reasonable period of growth, currently at around 15,000 points as opposed to 14,100 points at the end of the 2nd quarter.

As already mentioned, the oil patch continues to take a pounding and we don’t anticipate much positive change before 2018.  With oil starting to settle at around $50 a barrel we are not likely to see the start of any major projects.  The reality is that many companies in the oil patch are considering even more cost saving initiatives including layoffs.  Many companies are looking at divesting Canadian assets and investing in other geographies with less opposition and more government support.  Many workers who migrated to the oil patch during the boom have left, which will make things even tougher when a recovery happens because it will be difficult to entice them back.

The Canadian dollar in comparison to the US dollar is a long way from the days when we flirted with, and passed parity.  At time of writing the dollar is hovering between 75c US and 76c US, which is just a couple of cents weaker than the end of Q2.  The good news is that this helps the oil patch because they sell in US dollars and most costs are in Canadian dollars.  It is also helpful to our manufacturing sector, but that sector has been severely depleted over the years and Canada is a net importer meaning that overall a weak Canadian dollar is not good for Canada.

The banking sector, while a big user of talent and one of the largest employers in Canada, is also very careful.  The banks continue to be very careful with their hiring and are being careful to control their staffing levels.  Toronto and Montreal continue to demand talent, just perhaps a little more restrained than in other times.

The telecommunications companies are other big employers in Canada and are also very cost conscious.  While they demand the best talent in order to compete, they too, are also careful about keeping employment costs under control.  Some of the drivers of demand here include the highly competitive nature of the business, investment in infrastructure, technological innovation and a need to plan for a retiring “Boomer” workforce.

The US economy continues to add jobs, but at a reduced rate of about 150,000 per month.  The demand for skills in the US will lure talent from Canada which is good for the individuals but not so good for Canada in the long term.  What has not happened, and is different from previous economic times, is that Canada’s economy has not improved along with our neighbours, which is one of the indicators of a “new normal”.

The construction industry seems to be forever busy, to which anyone trying to get work done will attest.  Despite the slowdown in the big jobs like the oil sands, there appears to be a constant demand caused by infrastructure upgrades in many of our cities and we have the promise of more such work funded by our growing national debt (was that my out loud voice?).

The Liberal government has been in place for about a year and are continuing to both spend and raise taxes.  One example is their forced carbon tax, which is really just a money grab (does anyone really think this money won’t go into regular government coffers?) and is going to cost Canada jobs and hurt Canada’s economy at a time when it can ill afford it.  There are some expected government projects and infrastructure spending initiatives that should benefit the private sector.  In addition, spending in some ministries will be reduced as others benefit from the new agenda.  Some opportunities will be seen in sectors such as health, environment and education.

The Canadian Staffing Index is an indicator of the strength of the largest provider of talent in any economy (the staffing industry) and an excellent barometer of the health of Canada’s economy. The latest score for the Index was 108 in September, which was up 2 basis points from the end of Q2.

Here at Eagle the big impact on our business continues to be the oil patch, but other clients are taking advantage of a tough economy to look at their cost base.  This has led to layoffs and slower hiring patterns.  Year-over-year the number of people applying for jobs has increased by about 11.75%.  Demand from our clients was down more than 8% year-over-year.  This suggests to us that the people affected by the layoffs are now active in their job searches.  We also believe that demand is very patchy, with no sectors booming in demand for professionals.

More Specifically:

Toronto is one of the largest cities in North America with a population exceeding 6 million and the GTA (Greater Toronto Area) is home to the most head offices (almost 700) and most head office staff (around 75,000) in Canada.  Consequently it is also the hottest job market in Canada and generates about 60% of Eagle’s business.  While it remains a busy market we have seen some impact from downsizing in large companies that has increased the availability of senior people in the market.  Having said all that, if I were looking for work this is where I would like to be.  The sectors that are always looking for people include the financial, insurance, government and telecommunications sectors in addition to the retail sector and the construction industry.  There is also a fair amount of demand in the engineering and manufacturing space.

Western Canada and more specifically Calgary as the “oil capital” of Canada, has taken the brunt of the hit from the drop in oil prices.  There have been multiple rounds of layoffs, and more are projected, with the possibility that it may be 2018 before we see a recovery.  When the big oil companies are hurting there is a trickle-down effect to all of the services companies that serve them and the local economy is affected in retail and housing specifically.  The NDP government has done nothing to help boost confidence in Alberta for investors.  It should not be forgotten that both Saskatchewan and British Columbia have an oil sector too, and while they have been equally hit, those provinces seem to be doing better because their economies are less dependent on one sector and certainly Saskatchewan is a better managed province.  We have seen reasonable, but not strong, demand for talent in Vancouver, Regina, Winnipeg and Edmonton but remain cautious about the longer term impact of the loss of oil revenues.  This could affect everyone as provincial tax coffers suffer and the ancillary businesses are hit.

Eagle’s Eastern Canada region covers Ottawa, Montreal & the “Maritimes”. There is a better mood in Ottawa and within the Federal Government (other than the morale issues caused by a non-functioning pay system) but that has not translated into a bunch of work, as we know the contracting process is long and arduous.   There is an expectation that the Liberal government will get some projects back on the books, and there is optimism that a new agenda will lead to more business in the National Capital Region specifically.  Montreal is relatively unchanged, not booming but a steady demand for resources, particularly in the financial and telecommunications sectors.  The Maritime Provinces have traditionally had higher rates of unemployment and this continues to be the case.

The Hot Client Demand

At Eagle our focus in on professional staffing and the people in demand from our clients have been fairly consistent for some time.  Program Managers, Project Managers and Business Analysts  always seem to be in demand. It might just be our focus, but Change Management and Organizational Excellence resources are in relatively high demand too. Big data, analytics, CRM, web (portal and self-serve) and mobile expertise (especially developers) are specializations that we are seeing more and more. On the Finance and Accounting side, we see a consistent need for Financial Analysts, Accountants with designations and public accounting experience plus Controllers as a fairly consistent talent request. Expertise in the Capital markets, both technical and functional, tends to be a constant ask in the GTA.  Technology experts with functional expertise in Health Care is another skill set that also sees plenty of demand.  This demand fluctuates based on geography and industry sectors, so we advise candidates to watch our website and apply for the roles for which they are best suited.

Summary:

Canada’s economy continues to languish, and since the last recession we have been caught in a continual low interest rate, stimulus focused cycle that has never quite taken off.  The more recent “oil recession” has hit Canada hard, given that we are a resource rich country and there is no near end in sight.  Statistics show there are jobs being added in Canada, but the numbers are not impressive particularly when you see how the US is doing and most of those jobs are part time.

Federal and provincial governments are talking about stimulus spending and infrastructure projects, so there is an expectation this will create some boost to the economy, although I have not seen it.  If interest rates remain low, as expected, and the dollar remains fairly low, then we might also see some further growth in Canada’s relatively small manufacturing base.

Given that investment portfolios have recovered from the 2008 recession, we are seeing a rise in the Boomer retiree population which will create demand for highly skilled resources.  With Canada’s overall unemployment rate at 7%, we can deduce that the unemployment rate for trades and skilled workers to be much lower, perhaps even approaching skill shortage levels.  Even in these uncertain times, we see shortages in many niche skill areas.

There are definitely still opportunities created because of those retiring Boomers and the need for companies to remain competitive.  We see opportunity in the construction industry, the financial sector, the telecommunications sector and the insurance sector.  We see the markets with the greatest demand as being Toronto, Vancouver and perhaps Montreal.  Ottawa is showing promise and could pick up if new projects are initiated by the federal government.  Government spending will also provide a temporary boost to employment as the stimulus money becomes available.

That was my look at the Canadian job market for the third quarter in 2016 and some of its influences.

What’s Happening in Canada’s IT Sector?


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What IT Contractors Need to Know About the Canadian Tech Sector (Infographic)

The Information Technology (IT) sector in Canada is continuing to grow and is stronger than ever. As an independent contractor in the IT field, understanding that growth, including specific industries, regions and skills will give you the knowledge you need to find new IT contract opportunities, compete, and negotiate rates.

As you (hopefully) already know, Eagle provides a monthly summary of what happened in the IT industry around the world, including specific company news and merger & acquisition activity. We also publish a quarterly job market update for Canada based on our own observations in the staffing industry. If you’re looking for more data from another source that is a little more visually pleasing, then gaze over this infographic from the Ryerson University-affiliated Brookfield Institute for Innovation and Entrepreneurship.

What IT Contractors Need to Know About the Canadian Tech Sector (Infographic)

Quarterly Job Market Update Across Canada – July 2016


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Kevin Dee By Kevin Dee,
Chairman of the Board at Eagle

This post first appeared on the Eagle Blog on July 26th, 2016
Canadian Job MarketGeneral Observations:

There were some positive signs from the second quarter of 2016, but that sentiment by no means suggests it has been a booming market.  Despite some slight increase in oil prices we have seen no positive effect on jobs in the oil patch, and the lack of government support means that confidence in the sector is still low which will result in less potential for investment.  The Fort McMurray fires just “piled misery on” for an already beleaguered province, costing more jobs and lost productivity.  We have not yet seen any stimulus in employment from promised government spending, although it is possible we just haven’t seen it.  The Brexit decision caused ripples in the market, much debate and has had had no impact on employment yet.  It may become an area of opportunity, but that remains to be seen.  The weak dollar has helped some sectors such as the oil patch and the manufacturing sector, plus it is still business as usual for other sectors like the services sector, retail, banking, construction and telecommunications.

The unemployment rate at the end of the second quarter was improved to 6.8% from the Q1 rate of 7.1%.  During the previous 12 months, Canada added 108,000 jobs which was 22,000 less than the 12 months up to last quarter.  It is worth noting that the US continues to add jobs at a rate of 200,000 jobs every month, so we should expect to be adding 20,000 a month to keep pace (so 240,000 jobs in the last 12 months should be an expectation)!

TSXThe stock market continues to be volatile, and had an interesting ride with the Brexit announcement.  Having said that, things have generally settled down in the markets.   I focus on the TSX for this report and it ended Q2 at around 14,100 points which was up about 600 from the end of Q1.

oil rigAs already mentioned the oil patch continues to take a pounding and we don’t anticipate much positive change before 2018.  With oil starting to settle at around $50 a barrel we should see some activity but it will need to settle there for a while before companies act.  Many companies are looking at divesting Canadian assets and investing in other geographies with less opposition and more government support.  Many workers who migrated to the oil patch during the boom have left, and they will be difficult to replace when a recovery does happen.

Canadian dollar the LoonieThe Canadian dollar in comparison to the US dollar is a long way from the days when we flirted with, and passed parity.  At time of writing the dollar is worth about 76c US, which is just a couple of cents weaker than the end of Q1.  The good news is that this helps the oil patch because they sell in US dollars and most costs are in Canadian dollars.  It is also helpful to our manufacturing sector.  Exporters will enjoy favorable pricing too; however, exports have been adversely affected by the economic woes of our trading partners like China.

The banking sector, while a big user of talent and one of the largest employers in Canada is also very careful.  Recent initiatives have seen the banks rationalizing their workforce to ensure they are competitive.  Toronto and Montreal continue to demand talent, just perhaps a little more restrained than in other times.

cell towerThe telecommunications companies are another big employer in Canada and are also very cost conscious.  While they demand the best talent in order to compete, they are also careful about keeping employment costs under control.  Some of the drivers of demand here include the highly competitive nature of the business, investment in infrastructure, technological innovation and a need to plan for a retiring “Boomer” workforce.  The recent purchase of Wind by Shaw might increase competition and potentially open up opportunities should all of the regulatory approvals go through.

The US economy has been adding more than 200,000 jobs a month and while there were a couple of slower months in this last quarter, they made up for it in June.  The result is that the US is still adding 200,000 jobs a month on average.  The demand for skills in the US will lure talent from Canada which is good for the individuals but not so good for Canada in the long term.

ConstructionThe construction industry seems to be forever busy, to which anyone trying to get work done will attest.  Despite the slowdown in the big jobs like the oil sands, there appears to be a constant demand caused by infrastructure upgrades in many of our cities and we have the promise of more such work funded by our growing national debt (was that my out loud voice?).  Anecdotally I have seen numerous Alberta plated cars on job sites around the GTA, which supports the theory that many workers have come back from the oil patch and are finding work elsewhere.

The Liberal government has been in place for about nine months and are continuing to both spend and raise taxes.  There are some expected government projects and infrastructure spending initiatives that should benefit the private sector.  In addition, spending in some ministries will be reduced as others benefit from the new agenda.  Some opportunities will be seen in sectors such as health, environment and education.

The Canadian Staffing Index is an indicator of the strength of the largest provider of talent in any economy (the staffing industry) and an excellent barometer of the health of Canada’s economy. The latest score for the Index is 106 in June.  This indicates a 3% month over month increase in demand for labor and a 5% year over year increase.

Eagle LogoHere at Eagle the big impact on our business continues to be the oil patch, but also many clients are taking advantage of a tough economy to look at their cost base.  This can lead to some layoffs and slower hiring patterns.  Year-over-year the number of people applying for jobs has increased by about 3% and there was a 7% decrease since the last quarter.  Demand from our clients was down 4% year-over-year, and also down 3.5% from last quarter.  This suggests to us that the people affected by the layoffs are now active in their job searches.  We also believe that demand is very patchy, with no sectors booming in demand for professionals.

More Specifically:

cn towerThere is really very little change from my report last quarter.  This is the one market in Canada that has a continual demand for talent.  Toronto is the 5th largest city in North America with a population exceeding 6 million.  The GTA (Greater Toronto Area) is home to the most head offices (almost 700) in Canada and most head office staff (around 75,000).  Consequently it is also the hottest job market in Canada and generates about 60% of Eagle’s business.  While it remains a busy market we have seen some impact from downsizing in large companies that has increased the availability of senior people in the market.  Having said all that, if I were looking for work this is where I would like to be.  The sectors that are always looking for people include the financial, insurance, government and telecommunications sectors in addition to the retail sector and the construction industry.  There is also a fair amount of demand in the engineering and manufacturing space.

The Saddledome in CalgaryAgain very little change from last quarter.  Western Canada and more specifically Calgary as the “oil capital” of Canada, has taken the brunt of the hit from the drop in oil prices.  There have been multiple rounds of layoffs, and more are projected, with the possibility that it may be 2018 before we see a recovery.  When the big oil companies are hurting there is a trickle-down effect to all of the services companies that serve them and the local economy gets affected in retail and housing specifically.  The NDP government has done nothing to help boost confidence in Alberta for investors.  It should not be forgotten that both Saskatchewan and British Columbia have an oil sector too, and while they have been equally hit those provinces, seem to be doing better because their economies are less dependent on one sector.  We have seen reasonable, but not strong, demand for talent in Vancouver, Regina, Winnipeg and Edmonton but remain cautious about the longer term impact of the loss of oil revenues.  This could affect everyone as provincial tax coffers suffer and the ancillary businesses are hit.

Parliament building in OttawaEagle’s Eastern Canada region covers Ottawa, Montreal & the “Maritimes”. There is a better mood in Ottawa and within the Federal Government (other than the morale issues caused by a non-functioning pay system) but that has not translated into a bunch of work, as we know the contracting process is long and arduous.   There is an expectation that the Liberal government will get some projects back on the books, and there is optimism that a new agenda will lead to more business in the National Capital Region specifically.  Montreal is relatively unchanged, not booming but a steady demand for resources, particularly in the financial and telecommunications sectors.  The Maritime Provinces have traditionally had higher rates of unemployment and this is not changing much so work is tough to find.

The Hot Client Demand.

At Eagle our focus in on professional staffing and the people in demand from our clients have been fairly consistent for some time. That would include Program Managers, Project Managers andBusiness Analysts who always seem to be in demand. It might just be our focus, but Change Management and Organizational Excellence resources are in relatively high demand too. Big data, analytics, CRM, web (portal and self-serve) and mobile expertise (especially developers) are specializations that we are seeing more and more. On the Finance and Accounting side, we see a consistent need for financial analysts, accountants with designations and public accounting experience plus controllers as a fairly consistent talent request. Expertise in the Capital markets, both technical and functional, tends to be a constant ask in the GTA.  Technology experts with functional expertise in Health Care is another skill set that also sees plenty of demand.  This demand fluctuates based on geography and industry sectors, so we advise candidates to watch our website and apply for the roles for which they are best suited.

Summary:

The basic message is … more of the same!  The oil patch continues to be in trouble with 2018 the latest target for a recovery of sorts.  Statistics show there are jobs being added in Canada, but the numbers are not impressive particularly when you see how the US is doing.

Federal and provincial governments are talking about stimulus spending and infrastructure projects, so there is an expectation this will create some boost to the economy.  If interest rates remain low, as expected, and the dollar remains fairly low, then we might also see some further growth in Canada’s relatively small manufacturing base.

With Canada’s overall unemployment rate at 6.8%, we can deduce that the unemployment rate for trades and skilled workers to be much lower, perhaps even approaching skill shortage levels.  Even in these uncertain times we see shortages in niche skill areas.

There are definitely still opportunities created because of the demographic pressures (retiring Boomers) and the need for companies to remain competitive.  We see opportunity in the construction industry, the financial sector, the telecommunications sector and the insurance sector.  We see the markets with the greatest demand as being Toronto, Vancouver and perhaps Montreal.  Ottawa is showing promise and could pick up if new projects are initiated by the new government.  Government spending will also provide a boost to employment as the stimulus money becomes available.

That was my look at the Canadian job market for the first quarter in 2016 and some of its influences.

A Contractor’s Cheatsheet on Incorporation


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Answers to the Most Common of Common Questions about Incorporating in Canada

By Brendhan Malone (Vice-President, Central Canada at Eagle) and Graeme Bakker (Recruitment Team Lead at Eagle)

Answers to the Most Common of Common Questions about Incorporating in CanadaWe are often asked by IT professionals who are looking to enter the independent contractor world about what is involved in incorporation and what are the benefits.  Due to the nature of a business-to-business relationship, we always recommend the federal and provincial government as your best source for information.  We also strongly recommend seeking the counsel of an accountant prior to and immediately following incorporating.

One place we often recommend technology professionals start is the website for Innovation, Science and Economic Development Canada. Along with countless resources, the Frequently Asked Questions about incorporating will clarify almost any question about becoming an independent contractor. Below is a summary of some of these responses — what we believe are the most “Frequently Asked of the Frequently Asked Questions”.

What are the benefits of incorporating at the federal level?

  • You can do business throughout Canada.
  • It’s a feather in your cap! Incorporations are a sign of distinction, you will receive global recognition as a Canadian company.
  • High quality service: Fully bilingual staff to answer your questions via phone and online service where you can send documents and pay fees.

What are the advantages of incorporating online?

  • It’s convenient! If you have internet access you can file from anywhere.  The online filling centre on the Government of Canada website is open 24/7/365.
  • You don’t have to pay for shipping or wait around for the mailman, you will receive immediate notice of your filing.
  • It’s cheaper! The fee to file for federal business incorporation online is only $200 instead of the regular $250

What kind of businesses can incorporate under the CBCA (Canada Business Corporations Act) and who can form a corporation?

  • Almost any type of business may incorporate under the CBCA. There are no restrictions on the size of the company or which province you choose to set up shop in first. You need to be 18 years of age or older with no past history of bankruptcy.

Is a lawyer needed to incorporate?

  • You don’t need a lawyer to incorporate, but they may be a valuable resource throughout the process. If your proposed corporate structure is simple then the Government of Canada incorporation kit will have your answers and examples to follow.

If the answers to your questions about incorporation aren’t listed above, feel free to visit the original page for more details. Or, please leave your questions in the comments below and we’ll be happy to guide you in the right direction.