Ottawa – Employment was little changed in June 2014 and the unemployment rate rose by 0.1 percentage points to 7.1% as more people were searching for work, Statistics Canada reports in its latest Labour Force Survey.
Compared with 12 months earlier, employment increased by 72,000 or 0.4%. This was the lowest year-over-year growth rate since February 2010, when year-over-year employment growth resumed following the 2008-2009 labour market downturn.
The number of hours worked was little changed in the 12 months to June.
Employment decreased among youths aged 15 to 24 and people aged 25 to 54 in June, while it increased among people aged 55 and over.
Provincially, employment declined in Ontario as well as Newfoundland and Labrador, and increased in Manitoba, New Brunswick and Prince Edward Island.
Employment fell in business, building and other support services as well as agriculture. At the same time, there were more people working in construction and ‘other services.’
In June, there was little change in the number of private and public sector employees as well as the self-employed. On a year-over-year basis, all the growth was among private sector employees.
Adjusted to the concepts used in the United States, the unemployment rate in Canada was 6.1%, the same as the rate in the United States.
Declines among youths, gains among people 55 and over
In June, employment among youths aged 15 to 24 declined by 44,000, but their unemployment rate was little changed at 13.4% as fewer youths participated in the labour market. On a year-over-year basis, youth employment was down 50,000 (-2.0%) with this month accounting for most of the decline.
Employment declined by 26,000 for people aged 25 to 54, mostly among women, and the unemployment rate rose 0.3 percentage points to 6.1%. Compared with 12 months earlier, employment among people aged 25 to 54 was down slightly (-50,000 or -0.4%).
Among people aged 55 and over, employment increased by 60,000 in June, bringing their unemployment rate down 0.4 percentage points to 5.8%. Compared with 12 months earlier, employment for this group was up 172,000 or 5.1%, partly a result of population ageing.
In Ontario, employment fell by 34,000 in June, mostly among youths aged 15 to 24. The unemployment rate for the province rose 0.2 percentage points to 7.5%. On a year-over-year basis, employment in Ontario was little changed.
Employment in Newfoundland and Labrador fell for the third consecutive month, down 2,900 in June. The unemployment rate fell 0.2 percentage points to 12.5% as fewer people participated in the labour market. On a year-over-year basis, employment in the province was down 12,000 (-5.3%), with most of the losses occurring since January 2014.
In June, employment in Manitoba increased by 3,800. Despite this increase, employment in the province was down 5,200 or 0.8% from 12 months earlier.
Employment in New Brunswick rose by 2,700 in June, bringing gains over the year to 5,600 or 1.6%. The unemployment rate for the month fell 0.6 percentage points to 9.6%.
In business, building and other support services, employment declined by 27,000 in June, but was little changed on a year-over-year basis.
There were 15,000 fewer people working in agriculture in June. Compared with 12 months earlier, employment in this industry was down 23,000 (-7.1%).
Following five months of little change, the number of construction workers increased by 32,000 in June, bringing employment in this industry up to a level similar to that of 12 months earlier.
In June, employment rose by 21,000 in ‘other services,’ such as civic and social organizations as well as private household services. Compared with 12 months earlier, employment in this industry was little changed.
Summer employment for students
From May to August, the Labour Force Survey collects labour market data about youths aged 15 to 24 who were attending school full time in March and who intend to return full time in the fall. The June survey results provide the first indicators of the summer job market, especially for students aged 20 to 24, as many students aged 15 to 19 are still in school. The data for July and August will provide further insight into the summer job market. The published data are not seasonally adjusted. Therefore, comparisons can only be made from one year to another.
In June, the employment rate among returning students aged 20 to 24, that is, the number of employed as a percentage of their population was 67.4%, similar to that of June 2013. The unemployment rate was 12.0% for this group of students, little changed from 12 months earlier.
Quarterly update for the territories
The Labour Force Survey also collects labour market information about the territories. This information is produced monthly in the form of three-month moving averages. The following data are not seasonally adjusted; therefore, comparisons should only be made on a year-over-year basis.
From the second quarter of 2013 to the second quarter of 2014, employment in Yukon was little changed and the unemployment rate fell from 5.3% to 4.3%.
Over the same period, employment in the Northwest Territories declined by 1,500 and the unemployment rate increased from 7.3% to 9.6%.
In Nunavut, employment was little changed in the second quarter of 2014 compared with the second quarter of 2013, and the unemployment rate was also virtually unchanged at 13.6%.
Canada-United States comparison
Adjusted to the concepts used in the United States, the unemployment rate in Canada was 6.1%, the same as the rate in the United States. In the 12 months to June, the unemployment rate in Canada was little changed while the rate in the US fell 1.4 percentage points. The decrease in the US unemployment rate was attributable to both an increase in employment and a decline in the participation rate.
The employment rate in Canada in June (adjusted to US concepts) was 62.0%, compared with 59.0% in the United States.