Canada: Unemployment at 33 Year Low

Canadian employment was little changed in May, with full-time employment gains mostly offset by losses in part time work according to figures from Statistics Canada. The Canadian unemployment rate held steady at 6.1 percent, a 33-year low.

Construction, information, culture & recreation, and accommodation & food services have been the main source of employment growth in Canada since the beginning of 2007. These four industries also buoyed employment in May, counteracting the weakness in the trade sector and in natural resources.

Self-employment on the rise
May saw a large increase in the number of self-employed, up an estimated 56,000, while the number of employees in the private sector fell by 58,000. Since October 2006, the number of self-employed has jumped 6.5 percent, well ahead of gains for both public and private sector employees.

British Columbia
Employment increased by an estimated 14,000, bringing year-to-date gains to 45,000 (+2.0%). Employment growth so far in 2007 has been in construction, trade, and information, culture and recreation. The unemployment rate in British Columbia was 4.2 percent.

Alberta
While still well above the national average, Alberta’s employment growth (+1.8%) for the first five months of 2007 has slowed compared to the same period in 2006 (+3.9%). Gains so far this year stem mainly from trade and information, culture and recreation. Alberta’s unemployment rate rose to 3.8 percent.

Manitoba
The participation rate reached a record high of 70 percent, as more people entered the labour market. At the same time, the unemployment rate rose to 5.2 percent. Despite this increase, Manitoba’s unemployment rate remains among the lowest in Canada.

New Brunswick
The year-to-date employment growth (+1.9%) in 2007 was among the strongest in Canada. New Brunswick was also the only Atlantic province to record a significant increase in employment since the beginning of the year, with the largest gains in accommodation and food services, and information, culture and recreation.

Nova Scotia
Employment fell, with losses spread across several sectors. The unemployment rate held steady at 8.0 percent, due to a sharp decline in labour force participation.

Prince Edward Island
Employment losses pushed the unemployment rate up to 10.0 percent.

Quebec
While employment was little changed, the unemployment rate held steady at its historic 33-year low of 7.2 percent. Since the beginning of the year, employment has risen 1.3 percent. So far this year, increases in construction, accommodation and food services, and information, culture and recreation have more than offset losses in the manufacturing sector.

Ontario
Growth so far this year has been hindered by declines in manufacturing and business, building and support services. Despite strength in various service sectors, Ontario’s overall employment growth for the first five months of 2007 continues to lag well behind the national average. The unemployment rate rose to 6.3 percent.