The unemployment rate in Canada stabilized at 6.1%, and this new reading is better than currency market expectations, which indicated a rise to 6.2%. The previous reading of the unemployment rate in Canada was about 6.1% last March.
The unemployment rate measures the proportion of unemployed people searching for jobs out of the total labor force within Canada. Although the index data is collected cumulatively, the numbers of unemployed people are considered an indication of the health of the Canadian economy; Because consumer spending is closely linked to labor market conditions. In addition, these numbers are considered a factor influencing the Monetary Policy Committee decisions of the Bank of Canada.
In April, the labor market saw jobs rise by 90,000 jobs, representing a 0.4% increase, but the unemployment rate saw no change and remained steady at 6.1%. The employment rate stabilized at 61.4% after six consecutive months of declines.
During April, the core age group of people wanting to work (25 to 54 years old) saw employment increase by 0.6%, with men rising by 41,000 and women by 27,000. Young males aged 15 to 24 also saw a 2.8% increase, while working women aged 55 and over saw a 0.8% decrease, and the numbers remained steady among young men and women in the same age group.
April employment gains were coupled with an increase in part-time employment of 50,000 jobs, or 1.4%.
In terms of sectors, the Professional, Scientific and Technical Services sector saw an increase of 26,000 jobs (+1.3%), the Accommodation and Food sector increased by 24,000 jobs (+2.2%), and the Health Care and Social Assistance sector increased by 17,000 jobs (+0.6%). As well as an increase in the natural resources sector by 17,000 jobs (+0.6%). While the utilities sector saw a decrease of 5,000 jobs (-3.1%).
The employment rate has not changed
In terms of regions, Ontario, British Columbia, Quebec and New Brunswick saw employment increases in April, while the other provinces saw no significant change.
Total hours worked rose 0.8% in April and were up 1.2% compared to the same period last year. Regarding wages, average hourly earnings rose 4.7% (+$1.57 to $34.95) year-over-year in April, following 5.1% growth in March. Elsewhere, more than one in four workers (28.4%) have to come to work or call in to work on short notice at least several times a month. In April, we saw employment rise as the number of jobs increased by 90K (+0.4%), after little change in March.
Despite this rise, the employment rate – that is, the proportion of the population aged 15 and over who is working – was unchanged at 61.4% in April, and this comes after a series of continuous declines for six months. Notably, year-on-year, employment declined by 0.9 percentage points, as growth in the population aged 15 and over in the Labor Force Survey (+3.3%; +1.1 million) outpaced employment growth (+1.9%; +377,000). .
Employment gains in April were mainly achieved by part-time hiring (+50,000; +1.4%). On a yearly basis, part-time employment saw a rise of 2.9% (+104,000) in April, while full-time employment saw a rise of 1.7% (+273,000).
Over the past 12 months, unemployment rates have been rising in all major demographic groups. While the overall unemployment rate was unchanged from March to April 2024, it fell by 0.1 percentage point among people ages 25 to 54, and rose by 0.2 percentage points among people ages 55 and older. The unemployment rate changed little among young people.
The unemployment rate among people ages 55 and older rose year over year
Compared to 12 months ago, unemployment rates were higher among all major demographic groups, with the greatest increase among young people. Their unemployment rate rose by 2.9 percentage points to 12.8%, the highest youth unemployment rate since July 2016, excluding 2020 and 2021, during the COVID-19 pandemic. On an annual basis, the unemployment rate rose for both young women (+3.5 percentage points to 12.6%) and young men (+2.3 percentage points to 13.0%).
The unemployment rate among people aged 55 and over also rose year on year. The proportion increased for women aged 55 and over (+1.0 percentage points to 4.7%) compared to men (+0.4 percentage points to 4.7%). Over the past 12 months, unemployment rates in all of Canada’s major ethnic groups among people of prime working age (25 to 54 years) have risen on an annual basis.
In the period through April, the unemployment rate rose by 4.4 percentage points for prime-age Black Canadians, by 2.1 percentage points for South Asians, and by 1.3 percentage points for older Chinese Canadians. By comparison, the unemployment rate rose by 0.3 percentage points for people of prime working age who were not racialized.
In terms of increased employment in service-producing industries, employment in professional, scientific and technical services increased by 26,000 jobs (+1.3%) in April. Employment in accommodation and food services increased by 24,000 jobs (+2.2%), and employment in health care and social assistance increased by 17,000 jobs (+0.6%) in April 2024.
One in four workers face pressure to show up for work or call work on short notice at least several times a month. This situation highlights the importance of work-life balance and striving to achieve quality of life in the work environment.
The need for physical presence at the healthcare worksite
In April 2024, 28.4% of workers — ages 15 to 69 — indicated they face this pressure. It is noted that a larger percentage of men (30.5%) find themselves forced to do this compared to women (26.2%).
While salaried workers may enjoy more flexibility, at the same time they are more vulnerable to pressure to show up for work or call work on short notice. An estimated 43.8% of them find themselves in this situation.
Among occupations, there is an increased need for physical presence at the work site in health care. For example, 39.2% of professionals in health treatment and counseling services indicated the need to come to work or call their employer on short notice several times a month or more. It is noted that the percentage of registered nurses actually present on site is higher than the general average for all employees.
Time management and providing work-life balance can play a crucial role in workers’ well-being and productivity, and this aspect seems to hold great importance in today’s work environment.
