Canada: Employment Growth Continues

Canadian employment growth continued in February with gains estimated at 43,000, pushing Canada’s employment rate to a new record high (63.9 percent). For the second month in a row, the unemployment rate held steady at its 33-year low of 5.8 percent. Employment growth over the last 12 months stands at 361,000 (+2.2 percent).

Similar to January, employment growth in February was entirely attributable to an increase in full time workers. Over the past 12 months, full-time work has grown at three times the pace of part-time employment.

Employment growth in February was mainly in construction; public administration; and professional, scientific and technical services. These gains were partly offset by declines in manufacturing and natural resources.

In February, for the second consecutive month, strength in employment came from private sector employees. Overall employment growth over the past 12 months, however, has been the result of gains in the public sector.

Almost all of February’s employment growth was realised in Ontario. Large gains in construction; business, building, other support services and public administration were partly offset by the continued decline in manufacturing employment.

Wage growth remained strong in February, with a year-over-year increase in average hourly wages estimated at 4.9 percent. This was well above the most recent increase of 2.2 percent in consumer prices. February also marked the seventh consecutive month with a year-over-year increase in average hourly wages at, or above, 4 percent.

Ontario labour market strengthens in February
Ontario recorded strong employment growth in February, nearly all in full-time work. These latest gains pushed the overall unemployment rate in the province down 0.2 percentage points to 6.1 percent. Over the last 12 months, employment growth in Ontario stands at 2.0 percent, just slightly below the national average (+2.2 percent).

Although manufacturing in Ontario continued to lose workers in February, these declines were more than offset by strength in construction, business, building and other support services, as well as public administration.

Quebec
While employment in Quebec was little changed in February, over the last 12 months employment growth was above the national average. Despite weakness in manufacturing, employment in the province has grown steadily since February 2007 in other industries of the goods sector and in services. In February, the unemployment rate, at 7.0 percent, continued to hover around its 33-year low.

Labour market remains robust in Western Canada
In February, employment in Saskatchewan increased by 3,300, bringing total gains since last September, when the current upward trend began, to an estimated 12,000 (+2.5 percent). The unemployment rate in February, at 4.1 percent, was among the lowest in the country.

Alberta
Although little changed in February, employment in Alberta was up 3.0 percent from a year earlier, while the unemployment rate, at 3.5 percent, remained below that of all other provinces. Meanwhile, the province’s participation rate (the share of the working-age population that is working or looking for work) remained at a record high of 74.5 percent for the second consecutive month, the highest in Canada.

British Columbia
Employment in British Columbia was unchanged in February. Since February 2007, however, employment has increased by 2.3 percent (+52,000), driven by strength in construction. This growth has been somewhat tempered by a decline in manufacturing over this period, most notably in wood products. At 4.1 percent in February, the unemployment rate was unchanged from a month earlier and remains among the lowest in Canada.

New Brunswick’s labour market continues to grow
New Brunswick was the only province in Atlantic Canada to experience a notable employment gain in February. At the same time, the participation rate reached a record high of 65.0 percent. February’s increase in employment extends an upward trend that began in October 2006, with gains over this period totalling an estimated 17,000 (+4.8 percent). Nearly half of this increase has been in the past 12 months, all in the service sector, most notably in professional, scientific and technical services.

Nova Scotia
Employment in Nova Scotia fell by an estimated 3,800 in February and the unemployment rate edged up to 7.7 percent. This decline leaves overall employment in the province at about the same level as 12 months earlier. Figures from Statistics Canada