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Unemployment rate drops slightly to 7.0% in July but most job growth is for part-time work (corrected report from Statistics Canada)

Note to readers: Statistics Canada has corrected its July 2014 Labour Force Survey initially issued (and published here) on Aug. 8; this updated version was released Aug. 15.



Note to readers: Statistics Canada has corrected its July 2014 Labour Force Survey initially issued (and published here) on Aug. 8; this updated version was released Aug. 15.

Ottawa – Employment rose by 42,000 in July 2014, the result of an increase in part-time work (+60,000). The unemployment rate declined 0.1 percentage points to 7.0%.

In the 12 months to July, employment increased by 157,000 or 0.9%, with most of the growth in part-time work. The total hours worked were up slightly (+0.3%) compared with July 2013.

In July, employment increased among people aged 25 to 54 and youths aged 15 to 24, while it fell among people aged 55 and over.

Provincially, employment increased in Ontario and Newfoundland and Labrador, while it declined in Nova Scotia and New Brunswick.

In July, there were more people employed in educational services and in information, culture and recreation. At the same time, employment declined in construction as well as health care and social assistance.

Private sector employment increased in July, while the number of self-employed declined.

Adjusted to the concepts used in the United States, the unemployment rate in Canada was 6.1% in July, compared with the US rate of 6.2%.

Gains among youths and people aged 25 to 54

Employment rose by 38,000 among people aged 25 to 54 in July, and their unemployment rate declined by 0.1 percentage points to 6.0%. Compared with 12 months earlier, employment for this age group was little changed.

In July, employment among youths aged 15 to 24 increased by 34,000, but the unemployment rate was little changed at 13.1% as more youths participated in the labour market. Despite the employment increase in July, employment levels were little changed from 12 months earlier.

Employment fell by 30,000 among people aged 55 and over, partly offsetting gains in June. Compared with 12 months earlier, employment was up by 151,000 (+4.5%). These gains were mainly the result of a 3.2% growth in the population of this age group.

Provincial summary

Employment increased by 40,000 in Ontario in July, offsetting the decline the previous month. The unemployment rate remained at 7.5% as more people participated in the labour market. Compared with July 2013, employment in the province was up by 60,000 (+0.9%).

Following three consecutive months of decline, employment in Newfoundland and Labrador grew by 4,700 in July. The unemployment rate was little changed at 12.4% as more people participated in the labour market. Despite the increase in July, employment in the province was down by 5,000 (-2.2%) compared with 12 months earlier.

Employment in Nova Scotia declined by 3,900, pushing the unemployment rate up 0.7 percentage points to 9.4%. On a year-over-year basis, employment in the province was down 10,000 (-2.2%).

In New Brunswick, the number of people working fell by 3,400. The unemployment rate was 10.0%, little changed from a month earlier as fewer people participated in the labour market. Compared with a year earlier, employment in the province was virtually unchanged.

In July, employment was little changed in Saskatchewan. However, a decline in the number of people searching for work pushed the unemployment rate down 0.7 percentage points to 3.2%, the lowest rate in the province since comparable data became available in 1976. Compared with a year earlier, employment in the province was up 8,200 (+1.5%).

Industry perspective

Employment in educational services increased by 46,000 in July, mainly in primary and secondary schools in Ontario (see “Seasonal adjustment” and “Educational services” in the note to readers).

In July, there were 17,000 more people employed in information, culture and recreation. Compared with a recent low in July 2013, employment in this industry has increased by 55,000 (+7.3%).

The number of people employed in construction declined by 39,000 in July, offsetting an increase in the previous month. Compared with 12 months earlier, employment in this industry was down by 46,000 (-3.4%), the result of declines in the fall of 2013.

Employment in health care and social assistance fell by 26,000 in July, mostly in the social assistance sector in Quebec. Compared with a recent low in July 2013, employment in this industry was up by 90,000 (+4.2%).

Private sector employment increased by 55,000 in July, while the number of public sector employees edged up slightly and self-employment declined by 37,000. Compared with 12 months earlier, the number of employees increased in both the private sector (+1.2% or +141,000) and the public sector (+1.9% or +69,000). Self-employment was down 2.0% (-54,000) over this 12-month period.

Summer employment for students

From May to August, the Labour Force Survey collects labour market data about young people aged 15 to 24 who were attending school full time in March and who intend to return to school full time in the fall. The published data are not seasonally adjusted; therefore, comparisons can only be made on a year-over-year basis.

Compared with July 2013, employment was up by 32,000 among students aged 20 to 24, the result of an increase in part-time work. The rate of employment for this group was little changed at 71.1%, as employment and the number of returning students increased at a similar pace. Their unemployment rate was 8.1%, also little changed compared with a year earlier.

The employment rate for students aged 17 to 19 was 58.8% in July, similar to the rate 12 months earlier. Their unemployment rate was little changed at 17.0%.

Among students aged 15 to 16, the rate of employment was 29.1%, virtually unchanged compared with July 2013. Their unemployment rate was 28.6%, also little changed from 12 months earlier.

Canada–United States comparison

Adjusted to US concepts, the unemployment rate in Canada was 6.1% in July, compared with 6.2% in the United States. In the 12 months to July, the unemployment rate in Canada was down 0.2 percentage points, while the rate in the United States fell 1.1 percentage points.

In July, the employment rate in Canada (adjusted to US concepts) was 62.1%, compared with 59.0% in the United States. For further information, see “The labour market in Canada and the United States since the last recession, 2007 to 2014.”


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