Unemployment rate rises on dip in full-time workers

After three months of little change, employment declined by 31,000 (-0.2%) positions in July, raising the unemployment rate 0.1 percentage points to 6.9%, Statistics Canada data showed on Friday.

The drop was far short of a consensus forecast for growth of 10,000 jobs in the month. Full-time employment fell by 71,000 from June to July, while part-time work was up by 40,000.

On the upside, compared with 12 months earlier, total employment increased by 71,000 or 0.4%, with all of the growth in part-time work. Over the same period, the total number of hours worked rose by 0.4%.

Fewer youths working

In July, employment declined by 28,000 among those aged 15 to 24 years old, with all of the losses in part-time work. The youth unemployment rate was 13.3%. Compared with 12 months earlier, employment for this age group was down by 66,000 (-2.7%), while its population fell by 45,000 (-1.0%).

Among people aged 25 to 54, employment was little changed in July. However, for women in this age group, there were decreases in full-time employment (-39,000), which were mostly offset by gains in part-time employment (+38,000). The unemployment rate for those aged 25 to 54 was 5.9%. On a year-over-year basis, employment was little changed.

Employment for July was also little changed for men and women aged 55 and older. Compared with the same month a year earlier, employment rose by 105,000 (+6.6%) for women and 37,000 (+1.8%) for men. Employment gains for this age group were driven by population growth.

Regional statistics

Employment in Ontario decreased by 36,000 in July, the first notable decline since September 2015. The unemployment rate in the province was unchanged at 6.4%, as fewer people participated in the labour market.

Further, employment declined by 5,000 in Newfoundland and Labrador, and the unemployment rate increased 0.8 percentage points to 12.8%. In the 12 months to July, employment in the province fell 4,300 (-1.8%).

In British Columbia, employment actually rose by 12,000 in July, extending an upward trend that began in the spring of 2015. The unemployment rate in the province declined 0.3 percentage points to 5.6%, the lowest rate in the country. In the 12 months to July, employment gains in British Columbia totaled 85,000 or 3.7%, the fastest growth rate among the provinces.

Employment in New Brunswick also increased, by 5,000 in July, and the unemployment rate fell 0.6 percentage points to 9.7%. Compared with 12 months earlier, employment in the province grew by 6,700 (+1.9%).

In Quebec, employment was little changed, and the unemployment rate held steady at 7.0%. Employment levels in the province have been relatively stable since the summer of 2015.

For a second consecutive month, employment in Alberta was essentially unchanged. However, with more people searching for work, the unemployment rate in the province rose 0.7 percentage points to 8.6%, the highest rate since September 1994. In the 12 months to July, employment in Alberta fell by 49,000 (-2.1%), with losses in full-time employment totaling 104,000 (-5.4%). Over the same period, the unemployment rate was up 2.4 percentage points.

Industry perspective

Employment in public administration decreased by 24,000 in July, with most of the declines at the local, municipal and regional level. On a year-over-year basis, employment in public administration was unchanged.

There were 28,000 more people employed in health care and social assistance in July, bringing year-over-year gains to 64,000 (+2.8%). The monthly increase occurred primarily in Quebec and British Columbia.

Public sector employment fell by 42,000 in July, while there was little change among private sector employees and self-employed workers. The public sector includes all employees in public administration, most employees in utilities, and some employees in education, health care and social assistance, transportation and warehousing, and other industries.

Compared with 12 months earlier, public sector employment edged down 40,000 (-1.1%), while the number of private sector employees increased by 103,000 (+0.9%). Over the same period, the number of self-employed workers was little changed.