MRO Magazine

July proves to be a tough month for employment, especially for students

Ottawa, ON -- Following two months of little change, employment in July declined by 30,000, the result of losses in part-time work, according to the latest Labour Force Survey from Statistics Canada. The unemployment rate rose 0.1 percentage...


Human Resources

August 10, 2012
By MRO Magazine


Industries

Ottawa, ON — Following two months of little change, employment in July declined by 30,000, the result of losses in part-time work, according to the latest Labour Force Survey from Statistics Canada. The unemployment rate rose 0.1 percentage points to 7.3%.

Compared with 12 months earlier, employment increased 0.8% or 139,000, with full-time employment up 1.4% while part-time employment declined 1.8%. Total number of hours worked increased 1.2% over the same period.

Employment losses in July were in wholesale and retail trade; professional, scientific and technical services; public administration; and natural resources. These losses were partly offset by gains in information, culture and recreation as well as in finance, insurance, real estate and leasing.

In July, employment declined in Quebec, British Columbia, Manitoba as well as in Newfoundland and Labrador, while it increased in Prince Edward Island. There was little change in the other provinces.

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Losses were concentrated among women aged 55 and over, while employment was virtually unchanged among the other major demographic groups.

There was little change in employment in both the public and private sectors in July. Compared with 12 months earlier, employment in the public sector increased by 2.1%, while private sector employees and self-employment were little changed.

Industry perspective

Employment in wholesale and retail trade decreased by 30,000 in July. Compared with 12 months earlier, employment in this sector has fallen by 88,000 (-3.3%).

In July, employment in professional, scientific and technical services declined by 22,000, continuing its downward trend that started in January. Compared with 12 months earlier, employment was little changed in this sector, as the recent declines were offset by gains in the first five months of this period.

Employment in public administration fell by 17,000 in July. Employment in this sector remained similar to 12 months earlier.

Employment in natural resources declined by 8,900 in July, following two months of little change. Nonetheless, this sector continued to have the highest year-over-year growth rate of all major industries at 11.4%.

In July, employment rose by 24,000 in information, culture and recreation, following declines in the previous three months. Compared with 12 months earlier, employment in this sector remained little changed.

Employment in finance, insurance, real estate and leasing increased by 19,000 in July, continuing an upward trend that started in February. These gains offset declines in the previous five months, leaving employment in July similar to that of 12 months earlier.

Manufacturing jobs

Manufacturing was little changed in July, following gains earlier in the year. Compared with 12 months earlier, the number of factory workers was up slightly.

Provincial summary

 

Employment in Quebec fell by 29,000 in July, all in part-time work, leaving employment at similar levels to July 2011. The unemployment rate for the month was 7.6%.

Following two months of little change, employment in British Columbia declined by 15,000 in July, pushing the unemployment rate up 0.4 percentage points to 7.0%. With gains made prior to May, employment in this province was 1.5% higher compared with 12 months earlier.

In July, employment in Manitoba declined by 3,300 and the unemployment rate increased by 0.5 percentage points to 5.7%. Compared with 12 months earlier, employment was little changed.

Employment in Newfoundland and Labrador was down 3,200 in July, leaving employment at a similar level as July 2011.

Following gains in June, employment in Ontario was little changed in July. The unemployment rate rose 0.2 percentage points to 7.9%, as more people searched for work. Year-over-year employment gains totalled 47,000 (+0.7%).

Despite little change in employment for the second consecutive month, Alberta continued to have the lowest unemployment rate among all the provinces at 4.6%. With gains made throughout most of the previous 12 months, employment in this province has increased by 2.2% since July 2011, the highest growth rate of all provinces.

Employment declines among women aged 55 and over

Following three months of little change, employment among women aged 55 and over fell by 30,000 in July. Nevertheless, compared with 12 months earlier employment among this group was up by 45,000 (+3.2%).

Despite little change for men aged 55 and over in July, their employment was up 72,000 (+4.3%) compared with 12 months earlier.

The year-over-year employment increase for both men and women aged 55 and over was mostly a result of population aging.

Employment among those aged 25 to 54 was virtually unchanged in July. Employment growth for this group over the previous 12 months totalled 74,000 (+0.6%).

Employment among youths was little changed in July, and was down by 52,000 (-2.1%) compared with 12 months earlier. Their unemployment rate declined by 0.5 percentage points to 14.3% in July, as fewer of them searched for work.

Student summer employment

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

The rate of employment among students aged 20 to 24, that is, the number of employed as a percentage of their population, was 70.4% in July, little changed from the previous two years, but up from 66.8% in July 2009, when student employment was hard hit by the labour market downturn. The unemployment rate for these students was 7.9% in July, similar to that of the previous two years but down from 13.3% in July 2009.

Among students aged 17 to 19, the employment rate of 58.7% in July has been essentially unchanged since July 2009. Their unemployment rate, at 17.7%, has also been little changed since July 2009.

The labour market for students aged 15 to 16 years continued to be difficult in July. Their employment rate was 29.0%, the lowest on record. The unemployment rate for these students was 31.2%, among the highest ever posted for this age group.