Canada's national unemployment rate dropped to a 33 year low of 5.9 % last month driven by low unemployment in Manitoba, Saskatchewan, Alberta and B.C. where the resources boom continues to drive employment up. Manufacturing job losses however continued in central Canada, although unemployment dropped in Ontario to 6.2% and in Quebec to 6.9 %. This is at least modest good news and if the Bank of Canada does not raise interest rates but drops them somewhat and keeps them there for the next few months unemployment could well drop further even approaching the highly desirable target of 4-5 % unemployment. Despite some analysts drawing attention to rising wage costs the fact is that overall CPI inflation is still under 2 % and therefore inflation is not a problem.
The dollar however is still trading at parity and this will further hurt manufacturers who export to the US market particularly as aggregate demand weakens there because of growing recessionary chances.
In addition we should be aware of the fact that the unemployment rate on a provincial basis underestimates the true number of unemployed because it uses a provincially based labour participation rate in its calculations. The actual labour participation rate varies widely from province to province. In booming Alberta it is 74.1 %. but in higher unemployment Québec it is only 65.6 %. If we were to use Alberta's labour force participation rate as the base for Québec a defensible proposition because it shows that such a solid participation rate is possible in a truly fully employed part of the country then currently unemployment in Québec is actually more like 14.4 % instead of the official 6.9 %. Comparably Ontario's rate is actually 12.2 % if the participation rate were that of Alberta instead of being 6 % points lower. This is because currently Ontario's participation rate is 67.9 % some 6 % points lower than that of Alberta.
In other words because of their higher unemployment both Ontario and Québec have way more discouraged workers, those who have stopped looking for work and therefore dropped out of the labour force than is the case in Alberta, Manitoba or Saskatchewan where labour participation rates are all above 69 % .
Using the average of the three top provinces' participation rate weighted for their respective populations would still result in substantially higher measured unemployment in Ontario and Quebec 4% points higher in Ontario and close to 5.4 % points higher in Québec.
The stats Canada survey is reproduced below courtesy of Statistics Canada.
Friday, October 5, 2007
Labour Force Survey
September 2007
The unemployment rate dipped 0.1 percentage points to 5.9% in September, the first time since November 1974 that the rate has been below 6.0%. The decline in the rate occurred as employment rose by an estimated 51,000, with gains concentrated in full-time employment.
So far in 2007, employment has grown by 1.7% (+283,000), a rate of growth higher than that observed over the first nine months of 2006 (+1.3%).
In September, core-age workers—that is, persons aged 25 to 54—experienced their first significant gain in employment (+40,000) since the start of the year.
Older workers (aged 55 and over) also showed employment strength with an increase of 23,000 in September. So far this year, employment among older people has been growing at a faster pace (+5.6%) than for people in the core age group.
Employment increased by an estimated 30,000 in Ontario, all full-time work. Despite this increase, employment growth in the province over the first nine months of the year (+1.2%) remains below the national average of 1.7%.
Since the beginning of the year, the number of hours worked at the national level rose by 2.1%, a much stronger rate of increase than the 1.0% growth observed over the same period a year ago.
The largest employment increases in September were in educational services, followed by public administration; professional, scientific and technical services; and agriculture. There were declines, however, in retail trade.
Over the first nine months of the year, manufacturing employment has declined by 3.7% while there has been robust growth in a number of service industries, as well as in construction and utilities.
Employees, on average, earned 4.2% more per hour in September than they did in September 2006, while the most recent year-over-year increase in the Consumer Price Index was 1.7%. This is the largest estimated year-over-year increase in average hourly wages since the Labour Force Survey began collecting this information in 1997.
Employment in education rebounds from losses at end of school year
Employment in educational services jumped by an estimated 25,000 in September, bringing gains over the past couple of months to 58,000, completely offsetting declines observed earlier in the summer.
Employment in public administration rose by 22,000, mostly in local and municipal administration, with the largest gains in Ontario.
There were 18,000 more people employed in professional, scientific and technical services nationwide in September, bringing total gains since September 2006 to 60,000 (+5.5%). The largest increases over this period have been in architectural, engineering and design services as well as management, scientific and technical services.
In September, employment in agriculture increased by 13,000, with the largest gains in Alberta, followed by Quebec and British Columbia.
Transportation and warehousing employment rose by 13,000 across the country in September, partly offsetting the large drop the month before, leaving the industry at about the same level as at the end of last year.
Employment in trade dropped by an estimated 28,000 in September, mostly in retail. A large proportion of this decline was experienced by youths, who are commonly employed in retail trade. Despite this loss, growth in the industry was 1.5% (+39,000) over the first nine months of the year.
Employment in utilities declined by an estimated 8,000 in September. This follows a substantial growth of 26,000 between January and August, with the largest increase over this period occurring in Quebec.
Public-sector strength in 2007
In September, public-sector employment accounted for all of the employment increase, spurred by gains in educational services and public administration. This increase brings the growth in public-sector employment so far this year to 4.4%, while the number of private-sector employees has increased only 0.4%.
Although self-employment edged down slightly in September, it has increased by 3.9% so far in 2007.
Employment continues to boom for older workers
The strong upward trend in employment growth among workers aged 55 and over continued. An estimated 23,000 more older people were employed in September, with increases evenly distributed between men and women. Employment among those aged 55 and over has risen by 5.6% since the beginning of this year, the fastest of all age groups, with older women (+6.6%) outpacing older men (+4.7%).
The core-age group experienced the largest employment gain in September, up 40,000, concentrated among men. This represents the first significant employment increase for 25 to 54 year-olds since January 2007. September's gain brings total employment growth for core-age workers to 1.0% since the start of the year.
In September, employment among 15- to 24-year-olds edged down slightly as a decline of 31,000 youths working full time was partly offset by an increase of 20,000 working part time. This leaves overall youth employment up 1.3% since the beginning of the year.
Employment gains in Ontario and Saskatchewan
Ontario's overall employment picture improved in September. Employment in the province increased by an estimated 30,000, the first significant gain this year, pushing the unemployment rate down 0.2 percentage points to 6.2%. This brings total growth for the province so far in the year to 1.2% (+77,000).
In September, the largest increases in employment in Ontario were in educational services as well as in information, culture and recreation. There were also gains in public administration, mostly at the local, municipal and provincial levels. Some of this gain was likely the result of the hiring of additional workers for the provincial election. Manufacturing, however, continued to slump, with 44,000 fewer workers over the first nine months of this year.
In September, the employment picture also improved in Saskatchewan, with an estimated increase of 7,000, all in the service-producing sector. This increase, however, only brings employment in the province back to the same level as at the end of 2006. September's employment increase pushed the unemployment rate down 1.1 percentage points to 3.8%, the second lowest in the country after Alberta.
Employment growth in Alberta strongest in 2007
The strongest employment growth over the first nine months of 2007 occurred in Alberta, up 3.4%, with gains across a number of industries. The unemployment rate, at 3.6% in September, remained the lowest in the country.
New Brunswick had the second-strongest employment growth (+2.5%) in the country so far this year. However, the unemployment rate rose by 0.5 percentage points to 8.2% in September, the result of more people looking for work.
British Columbia ranks third in employment growth so far this year (+2.2%), with the largest gains in retail trade as well as construction. With no employment change in September and an increase in the number of people entering the labour force in search of work, the unemployment rate rose 0.3 percentage points to 4.3%.
As of September, there were a number of ongoing labour disputes in British Columbia, including those involving members of unions in 31 coastal forestry companies and municipal workers in Vancouver. Workers on strike or locked out are considered employed according to Labour Force Survey definitions. However, the number of hours lost from work due to labour disputes in the province was substantial. During the survey reference week of September 9, there were 13,000 employees who were not at work because of labour disputes, resulting in a loss of an estimated 476,000 hours, or 37.8 hours per affected employee.
Quebec's employment growth so far this year (+2.0%) has also been above the national average, with gains in part-time employment (+8.0%) outpacing those of full-time work (+0.7%). Increases for the year have been in accommodation and food services; trade; and construction and utilities. Similar to Ontario, Quebec's manufacturing sector employment has also declined in 2007 (-36,000). In September, the unemployment rate returned to its 33-year low of 6.9%, and the employment rate remained at its record high of 61.1% for the fourth consecutive month.
Manitoba's employment growth so far this year, at 1.9%, was led by gains in professional, scientific and technical services as well as construction. The proportion of working-age Manitobans with a job reached 66.5% in September, an all-time high.
Quarterly update on Territories and Aboriginal population in the western provinces living off-reserve
The Labour Force Survey also collects labour market information about the Territories, as well as the Aboriginal population living off-reserve in the western provinces. This information is not seasonally adjusted and is produced in the form of three-month moving averages. Comparisons should only be made on a year-over-year basis.
The Territories
For the 10 largest communities in Nunavut, the employment rate increased to 63.7% in September (three-month average of July, August, and September) from 59.1% one year ago.
In contrast, the employment rate in the Yukon fell from 74.9% in September 2006 to 72.3% in September 2007 (three-month average). In the Northwest Territories, there was little change in the labour market over the past year, with the employment rate at 74.7% this September.
Employment growth for Aboriginal peoples residing in Alberta
The employment rate in September (three-month average) among off-reserve Aboriginal peoples in the western provinces averaged 61.4%, down 0.6 percentage points compared to the same period in 2006. For the non-Aboriginal population in the western provinces, the employment rate increased 0.7 percentage points over the same period to 67.6%.
Alberta, with the strongest labour market in the country, was the only province where the employment rate among off-reserve Aboriginal peoples increased, up from 65.1% in September 2006 to 65.6% in September 2007.
In contrast, between September 2006 and September 2007, the employment rate among Aboriginal peoples living off-reserve declined by 2.1 percentage points in Manitoba, by a full percentage point in British Columbia and was little changed in Saskatchewan.
Note: The Labour Force Survey (LFS) estimates are based on a sample, and are therefore subject to sampling variability. Estimates for smaller geographic areas or industries will have more variability. For an explanation of sampling variability of estimates, and how to use standard errors to assess this variability, consult the "Data quality" section of the publication Labour Force Information (71-001-XWE, free).
Available on CANSIM: tables 282-0001 to 282-0042, 282-0047 to 282-0064 and 282-0069 to 282-0099.
Definitions, data sources and methods: survey number 3701.
A more detailed summary, Labour Force Information (71-001-XWE, free) is now available online for the week ending September 15. From the Publications module of our website, under Free Internet publications, choose Labour. LAN and bulk prices are available on request. The CD-ROM Labour Force Historical Review, 2006 (71F0004XCB, $209) is now available. See How to order our products.
Data tables are also now available online. From the By Subject module of our website, choose Labour.
The next release of the Labour Force Survey will be on November 2.
For general information or to order data, contact Client Services (toll-free 1-866-873-8788; 613-951-4090; labour@statcan.ca). To enquire about the concepts, methods or data quality of this release, contact Vincent Ferrao (613-951-4750) or Danielle Zietsma (613-951-4243), Labour Statistics Division.
Labour force characteristics by age and sex
August 2007 September 2007 August to September 2007 September 2006 to September 2007 August to September 2007 September 2006 to September 2007 Seasonally adjusted
thousands change in thousands % change
Both sexes 15+
Population 26,599.8 26,631.8 32.0 366.3 0.1 1.4
Labour force 17,947.5 17,976.7 29.2 334.6 0.2 1.9
Employment 16,871.9 16,923.0 51.1 410.1 0.3 2.5
Full-time 13,830.7 13,863.2 32.5 311.5 0.2 2.3
Part-time 3,041.2 3,059.9 18.7 98.7 0.6 3.3
Unemployment 1,075.6 1,053.6 -22.0 -75.5 -2.0 -6.7
Participation rate 67.5 67.5 0.0 0.3 ... ...
Unemployment rate 6.0 5.9 -0.1 -0.5 ... ...
Employment rate 63.4 63.5 0.1 0.6 ... ...
Part-time rate 18.0 18.1 0.1 0.2 ... ...
Youths 15 to 24
Population 4,356.8 4,359.8 3.0 31.6 0.1 0.7
Labour force 2,905.2 2,907.0 1.8 37.5 0.1 1.3
Employment 2,593.8 2,582.5 -11.3 64.5 -0.4 2.6
Full-time 1,457.5 1,426.2 -31.3 3.9 -2.1 0.3
Part-time 1,136.3 1,156.3 20.0 60.6 1.8 5.5
Unemployment 311.4 324.5 13.1 -27.0 4.2 -7.7
Participation rate 66.7 66.7 0.0 0.4 ... ...
Unemployment rate 10.7 11.2 0.5 -1.0 ... ...
Employment rate 59.5 59.2 -0.3 1.0 ... ...
Part-time rate 43.8 44.8 1.0 1.3 ... ...
Men 25+
Population 10,865.7 10,880.2 14.5 166.3 0.1 1.6
Labour force 7,982.0 8,000.8 18.8 102.5 0.2 1.3
Employment 7,566.7 7,603.8 37.1 142.6 0.5 1.9
Full-time 7,079.4 7,118.7 39.3 138.6 0.6 2.0
Part-time 487.2 485.2 -2.0 4.1 -0.4 0.9
Unemployment 415.3 397.0 -18.3 -40.0 -4.4 -9.2
Participation rate 73.5 73.5 0.0 -0.2 ... ...
Unemployment rate 5.2 5.0 -0.2 -0.5 ... ...
Employment rate 69.6 69.9 0.3 0.3 ... ...
Part-time rate 6.4 6.4 0.0 0.0 ... ...
Women 25+
Population 11,377.3 11,391.9 14.6 168.5 0.1 1.5
Labour force 7,060.4 7,068.9 8.5 194.6 0.1 2.8
Employment 6,711.4 6,736.7 25.3 203.0 0.4 3.1
Full-time 5,293.8 5,318.3 24.5 169.0 0.5 3.3
Part-time 1,417.6 1,418.4 0.8 33.9 0.1 2.4
Unemployment 349.0 332.1 -16.9 -8.5 -4.8 -2.5
Participation rate 62.1 62.1 0.0 0.9 ... ...
Unemployment rate 4.9 4.7 -0.2 -0.3 ... ...
Employment rate 59.0 59.1 0.1 0.9 ... ...
Part-time rate 21.1 21.1 0.0 -0.1 ... ...
... not applicable
Note: Related CANSIM table 282-0087.
Employment by class of worker and industry (based on NAICS)1
August 2007 September 2007 August to September 2007 September 2006 to September 2007 August to September 2007 September 2006 to September 2007
Seasonally adjusted
thousands change in thousands % change
Class of worker
Employees 14,229.6 14,295.9 66.3 276.3 0.5 2.0
Self-employed 2,642.3 2,627.1 -15.2 133.7 -0.6 5.4
Public/private sector employees
Public 3,273.5 3,332.5 59.0 143.5 1.8 4.5
Private 10,956.1 10,963.5 7.4 132.9 0.1 1.2
All industries 16,871.9 16,923.0 51.1 410.1 0.3 2.5
Goods-producing sector 4,009.3 3,999.8 -9.5 25.8 -0.2 0.6
Agriculture 336.8 350.0 13.2 2.2 3.9 0.6
Natural resources 332.3 329.1 -3.2 -5.6 -1.0 -1.7
Utilities 149.7 141.9 -7.8 20.3 -5.2 16.7
Construction 1,152.1 1,143.7 -8.4 80.2 -0.7 7.5
Manufacturing 2,038.3 2,035.1 -3.2 -71.3 -0.2 -3.4
Service-producing sector 12,862.6 12,923.3 60.7 384.3 0.5 3.1
Trade 2,709.1 2,680.8 -28.3 48.6 -1.0 1.8
Transportation and warehousing 800.2 812.9 12.7 17.0 1.6 2.1
Finance, insurance, real estate and leasing 1,053.8 1,057.9 4.1 11.4 0.4 1.1
Professional, scientific and technical services 1,142.1 1,159.8 17.7 60.4 1.5 5.5
Business, building and other support services 714.9 718.7 3.8 18.9 0.5 2.7
Educational services 1,171.4 1,196.2 24.8 43.1 2.1 3.7
Health care and social assistance 1,847.7 1,832.6 -15.1 29.7 -0.8 1.6
Information, culture and recreation 776.1 784.6 8.5 34.9 1.1 4.7
Accommodation and food services 1,078.9 1,083.5 4.6 52.4 0.4 5.1
Other services 709.2 715.5 6.3 15.0 0.9 2.1
Public administration 859.1 880.6 21.5 52.8 2.5 6.4
1. North American Industrial Classification System.
Note: Related CANSIM tables 282-0088 and 282-0089.
Labour force characteristics by province
August 2007 September 2007 August to September 2007 September 2006 to September 2007 August to September 2007 September 2006 to September 2007
Seasonally adjusted
thousands change in thousands % change
Newfoundland and Labrador
Population 423.2 423.3 0.1 -3.9 0.0 -0.9
Labour force 251.3 250.4 -0.9 -2.9 -0.4 -1.1
Employment 216.9 216.3 -0.6 -1.4 -0.3 -0.6
Full-time 188.7 187.3 -1.4 1.1 -0.7 0.6
Part-time 28.2 29.0 0.8 -2.5 2.8 -7.9
Unemployment 34.4 34.0 -0.4 -1.6 -1.2 -4.5
Participation rate 59.4 59.2 -0.2 -0.1 ... ...
Unemployment rate 13.7 13.6 -0.1 -0.5 ... ...
Employment rate 51.3 51.1 -0.2 0.1 ... ...
Prince Edward Island
Population 113.5 113.6 0.1 1.1 0.1 1.0
Labour force 77.1 77.4 0.3 0.7 0.4 0.9
Employment 69.1 69.2 0.1 0.7 0.1 1.0
Full-time 57.6 57.9 0.3 0.6 0.5 1.0
Part-time 11.5 11.3 -0.2 0.1 -1.7 0.9
Unemployment 7.9 8.1 0.2 -0.1 2.5 -1.2
Participation rate 67.9 68.1 0.2 -0.1 ... ...
Unemployment rate 10.2 10.5 0.3 -0.2 ... ...
Employment rate 60.9 60.9 0.0 0.0 ... ...
Nova Scotia
Population 764.5 764.9 0.4 1.8 0.1 0.2
Labour force 485.3 483.6 -1.7 6.6 -0.4 1.4
Employment 442.2 445.0 2.8 5.0 0.6 1.1
Full-time 359.2 360.1 0.9 0.4 0.3 0.1
Part-time 83.0 84.9 1.9 4.6 2.3 5.7
Unemployment 43.1 38.6 -4.5 1.6 -10.4 4.3
Participation rate 63.5 63.2 -0.3 0.7 ... ...
Unemployment rate 8.9 8.0 -0.9 0.2 ... ...
Employment rate 57.8 58.2 0.4 0.5 ... ...
New Brunswick
Population 613.5 614.0 0.5 2.8 0.1 0.5
Labour force 393.5 395.7 2.2 12.2 0.6 3.2
Employment 363.2 363.1 -0.1 13.4 0.0 3.8
Full-time 306.0 305.4 -0.6 10.7 -0.2 3.6
Part-time 57.2 57.7 0.5 2.7 0.9 4.9
Unemployment 30.3 32.6 2.3 -1.2 7.6 -3.6
Participation rate 64.1 64.4 0.3 1.7 ... ...
Unemployment rate 7.7 8.2 0.5 -0.6 ... ...
Employment rate 59.2 59.1 -0.1 1.9 ... ...
Quebec
Population 6,321.7 6,325.8 4.1 59.2 0.1 0.9
Labour force 4,152.6 4,148.5 -4.1 43.1 -0.1 1.0
Employment 3,859.9 3,864.2 4.3 87.3 0.1 2.3
Full-time 3,146.8 3,131.3 -15.5 41.5 -0.5 1.3
Part-time 713.1 732.9 19.8 45.8 2.8 6.7
Unemployment 292.6 284.3 -8.3 -44.2 -2.8 -13.5
Participation rate 65.7 65.6 -0.1 0.1 ... ...
Unemployment rate 7.0 6.9 -0.1 -1.1 ... ...
Employment rate 61.1 61.1 0.0 0.8 ... ...
... not applicable
Note: Related CANSIM table 282-0087.
Labour force characteristics by province
August 2007 September 2007 August to September 2007 September 2006 to September 2007 August to September 2007 September 2006 to September 2007
Seasonally adjusted
thousands change in thousands % change
Ontario
Population 10,378.4 10,391.0 12.6 131.1 0.1 1.3
Labour force 7,043.6 7,058.1 14.5 112.2 0.2 1.6
Employment 6,594.0 6,623.7 29.7 134.3 0.5 2.1
Full-time 5,403.3 5,440.8 37.5 116.5 0.7 2.2
Part-time 1,190.7 1,182.9 -7.8 17.8 -0.7 1.5
Unemployment 449.5 434.4 -15.1 -22.1 -3.4 -4.8
Participation rate 67.9 67.9 0.0 0.2 ... ...
Unemployment rate 6.4 6.2 -0.2 -0.4 ... ...
Employment rate 63.5 63.7 0.2 0.4 ... ...
Manitoba
Population 900.0 900.6 0.6 7.7 0.1 0.9
Labour force 622.6 624.7 2.1 9.2 0.3 1.5
Employment 596.4 598.7 2.3 10.3 0.4 1.8
Full-time 482.7 488.4 5.7 16.2 1.2 3.4
Part-time 113.7 110.3 -3.4 -5.9 -3.0 -5.1
Unemployment 26.2 26.0 -0.2 -1.1 -0.8 -4.1
Participation rate 69.2 69.4 0.2 0.5 ... ...
Unemployment rate 4.2 4.2 0.0 -0.2 ... ...
Employment rate 66.3 66.5 0.2 0.6 ... ...
Saskatchewan
Population 752.1 753.6 1.5 7.5 0.2 1.0
Labour force 521.1 522.6 1.5 3.0 0.3 0.6
Employment 495.5 502.5 7.0 4.8 1.4 1.0
Full-time 406.5 411.6 5.1 3.6 1.3 0.9
Part-time 89.0 90.9 1.9 1.2 2.1 1.3
Unemployment 25.6 20.0 -5.6 -1.9 -21.9 -8.7
Participation rate 69.3 69.3 0.0 -0.3 ... ...
Unemployment rate 4.9 3.8 -1.1 -0.4 ... ...
Employment rate 65.9 66.7 0.8 0.0 ... ...
Alberta
Population 2,754.5 2,759.9 5.4 97.9 0.2 3.7
Labour force 2,040.8 2,046.2 5.4 95.9 0.3 4.9
Employment 1,968.7 1,973.3 4.6 91.2 0.2 4.8
Full-time 1,663.4 1,660.1 -3.3 73.2 -0.2 4.6
Part-time 305.3 313.2 7.9 18.0 2.6 6.1
Unemployment 72.0 72.9 0.9 4.7 1.3 6.9
Participation rate 74.1 74.1 0.0 0.8 ... ...
Unemployment rate 3.5 3.6 0.1 0.1 ... ...
Employment rate 71.5 71.5 0.0 0.8 ... ...
British Columbia
Population 3,578.4 3,585.2 6.8 61.2 0.2 1.7
Labour force 2,359.8 2,369.5 9.7 54.6 0.4 2.4
Employment 2,265.9 2,266.8 0.9 64.1 0.0 2.9
Full-time 1,816.5 1,820.0 3.5 47.4 0.2 2.7
Part-time 449.4 446.8 -2.6 16.7 -0.6 3.9
Unemployment 93.9 102.6 8.7 -9.6 9.3 -8.6
Participation rate 65.9 66.1 0.2 0.4 ... ...
Unemployment rate 4.0 4.3 0.3 -0.5 ... ...
Employment rate 63.3 63.2 -0.1 0.7 ... ...
... not applicable
Note: Related CANSIM table 282-0087
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