Several economic experts have predicted the rising unemployment rate will negatively impact the housing market in 2012, but recent research says Canadian companies plan to expand workforces next year.
According to a survey by CareerBuilder.ca found that 34 percent of Canadian employers expect to add full-time staff, up from 32 percent 12 months ago and 29 percent the previous year.
"Even as the global economy continues to struggle, Canada is expected to add jobs at a steady pace in 2012," said Brent Rasmussen, president of CareerBuilder North America. Rasmussen added that information technology, engineering and administration professionals will be in high demand, as businesses hire staff expecting to improve efficiency.
Meanwhile, 48 percent of companies predict no change in their hiring, while 10 percent anticipate cutting jobs. Some experts say slow income growth has been a major reason for high consumer debt and low housing affordability, but the survey revealed 75 percent of companies will increase compensation to keep current staff members.
According to Statistics Canada, the national unemployment rate rose 0.1 percent in November after a 0.2 increase in October, fueling speculation among experts that the Bank of Canada could drop its key interest rate to keep the economy afloat. Any change in the BoC's rates would most likely affect mortgage rates and loan payments.