June saw little changes in the Canadian labor market, as employment remained virtually unchanged, while the unemployment rate rose significantly. Here is a comprehensive look at these changes and the most prominent influencing factors.
Employment flat, employment declines:
Employment remained virtually unchanged in June, with a slight decline of 1,400 jobs, or just 0.0%. This stability comes after a notable increase in May of 27,000 jobs, or 0.1%.
Employment rate:
The employment rate, which expresses the proportion of the working population over the age of 15, decreased by 0.2 percentage points to 61.1%. This decline is the eighth of its kind in the past nine months, reflecting a continuing decline since its recent high of 62.4% in January and February 2023.
Increase in Unemployment Rate Unemployment Rate:
The unemployment rate rose 0.2 percentage points to 6.4% in June. Since April 2023, the unemployment rate has increased by 1.3 percentage points.
Sectoral and regional changes Sectors:
The transportation and warehousing sector saw a significant decline in employment amounting to 12,000 jobs (1.1%), as did public administration, which lost 8,800 jobs (0.7%). On the other hand, the accommodation and food services and agriculture sectors saw notable increases of 17,000 jobs (1.5%) and 12,000 jobs (5.5%), respectively.
Provinces:
Employment in Quebec decreased by 18,000 jobs (0.4%), while New Brunswick and Newfoundland and Labrador saw increases of 3,000 jobs (0.8%) and 2,600 jobs (1.1%), respectively.
Demographic Changes:
Young Males: Employment among young males ages 15-24 decreased by 13,000 jobs (0.9%).)
Women of primary working age: Employment among women of primary working age (25 to 54 years) increased by 19,000 jobs (0.3%).
Total working hours and wages
Hours worked: Total hours worked decreased by 0.4% in June, and year-on-year total hours worked increased by 1.1%.
Wages: Median hourly wages among employees rose 5.4% in June year over year, after 5.1% growth in May.
Student Employment: Returning Students: The employment rate for returning students ages 15-24 was 46.8% in June, down from 51.7% the previous year. This represents the lowest rate since June 1998, excluding June 2020 during the first year of the pandemic.
These numbers may reflect general stability in the labor market with clear variations between different sectors, regions and age groups. High student unemployment indicates ongoing challenges in finding summer job opportunities. It is important to monitor these trends to identify policies to support affected groups and improve labor market conditions.
Employment stabilized in June with slight changes in the labor market: The Canadian labor market witnessed stability in employment during the month of June, as it did not record major changes, indicating a relative balance in this sector. Here is a comprehensive look at the most notable developments:
Employment numbers stabilize Employment: The number of employees remained almost unchanged in June, seeing a slight decrease of 1,400 jobs, equivalent to 0.0%. This stability comes after a slight increase in May of 27,000 jobs (0.1%).
Employment Rate: The employment rate, which is the proportion of the population aged 15 and over who is working, decreased by 0.2 percentage points to 61.1%. This is the eighth decline in the past nine months, reflecting a decline since the January-February 2023 high of 62.4%.
Year-on-Year Pay Increases in June Year-over-year, average hourly wages for employees rose 5.4% (+$1.79 to $34.91) in June, following 5.1% growth in May. Average hourly earnings rose 5.2% (+$1.62 to $32.57) among women in June
Annual growth in employment
Year-over-year increase: On a year-over-year basis, employment increased by 1.7% (+343,000) in June 2024.
Public sector versus private sector:
Employment growth in the 12 months to June was faster in the public sector (+4.3%; +183,000) than in the private sector (+0.8%; +106,000).
Self-employment: Self-employment rose in June year-on-year (+2.1%; +55,000), but remained below its average from 2017 to 2019 (-4.3%; -121,000), before the COVID-19 pandemic.
Sectoral and regional changes:
Affected sectors: Employment decreased in the transportation and storage sector by 12,000 jobs (1.1%) and in public administration by 8,800 jobs (0.7%). On the other hand, the accommodation and food services and agriculture sectors saw notable increases of 17,000 jobs (1.5%) and 12,000 jobs (5.5%), respectively.
Regional Changes:
Employment in Quebec decreased by 18,000 jobs (0.4%), while New Brunswick and Newfoundland and Labrador saw increases of 3,000 jobs (0.8%) and 2,600 jobs (1.1%), respectively.
Hours of Work and Wages Hours of Work: Total hours worked decreased by 0.4% in June. On an annual basis, total hours worked increased by 1.1%. Wages: Median hourly wages among employees rose 5.4% in June year over year, after 5.1% growth in May.
Student Employment:
Returning Students: The employment rate for returning students ages 15-24 was 46.8% in June, down from 51.7% the previous year, and the lowest rate since June 1998, excluding June 2020 during the pandemic.
Student Unemployment Rate:
The unemployment rate among returning students rose to 15.9% in June 2024, an increase of 3.8 percentage points from the previous year. The numbers may reflect relative stability in the Canadian labor market, with some slight changes across different sectors and age groups. These indicators can be considered useful for evaluating future policies and improving working conditions for affected groups.
Low employment rate among youth and working-aged men
The employment rate among young men aged 15-24 declined in June (-1 3,000; -0.9%), while it remained steady for young women. The overall youth employment rate has been on a strong downward trend since April 2023, falling by 4.4 percentage points to 54.8% in June 2024.
For men aged 25-54, employment was little changed (-1 4,000; -0.2%) in June, and the employment rate fell by 0.5 percentage points to 86.6%. This extended a downward trend in the employment rate from a recent high of 88.2% in June 2023. The rate in June 2024 was similar to the pre-pandemic average of 86.5% observed from 2017 to 2019.
For women aged 25-54, the employment rate increased in June 2024 (+19,000; +0.3%) and the employment rate remained steady at 80.6%. The employment rate of women of primary working age trended down from a record high of 82.0% in January and March 2023, but remained higher than the pre-pandemic average recorded from 2017 to 2019 (79.3%). The employment rate for people aged 55 to 64 was little changed in June 2024. On a yearly basis, the employment rate for people in this age group rose 0.9 percentage points to 69.8% for men and was little changed at 60.4% for women.
