Unemployment rate in Canada recorded low, and employment rate increased by 1.1 million - May Report

Unemployment rate in Canada recorded low, and employment rate increased by 1.1 million - May Report

Highlights of Employment rate in Canada

• Employment rate in Canada increased by 0.2 percent offering 1.1 million job vacancies
• Unemployment rate in Canada recorded 5.1 percent
• Total working hours changed in May
• The average hourly wages increased up to 3.9 percent

Employment in Canada in May increased up to 40,000 and the unemployment rate went down up to 5.1 percent. The employment rate rose because of an increase in full-time work among young women. The increase in the employment rate has affected several industries positively. Total working hours also changed in May. Average hourly wages also increased by 3.9 percent.

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Unemployment rate in Canada declined to 5.1%

Employment growth through full-time work

Total employment growth increased in May by 0.2 percent because of growth in full-time work up to 0.9 percent. Part-time jobs have seen a drop and the drop percentage is 2.6 percent.

Employment grew in May due to women of all age groups

The employment rate grew because of the women of all three main groups. The table below will tell about the rise in full-time employment and fall in part-time ones.

Age Group	Type of employment	Increase	Decrease
25 to 54	Full-time	1.2 percent	NA
25 to 54	Part-time	NA	4.0 percent
15 to 24	Full-time	10 percent	NA
15 to 24	Part-time	NA	4.8 percent
55 to 64	Full-time	1.0 percent	NA

Employment rate due to diverse group

Since May 2021, the employment was increased by 1.1 million which is +5.7 percent and in May 2022, it increased more by 2.6 percent, which is more than the pre-COVID period. The table below will show the increase in job through diverse groups.

Diverse Group	Increase in employment rate in 2022	Total increase in May 2022
First Nations women	10.4 percent	70.1 percent
South Asian Women	6.3 percent	75.2 percent
Metis Men	4.9 percent	84.1 percent
Filipino men	4.0 percent	91.4 percent

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Employment in Public Sector

The rise of the number of employees in the public sector went up to 2.6 percent as more people were employed in educational services, healthcare, and social assistance. The number of employees in private sector has decreased by 0.7 percent as very few employees are working in manufacturing. Since the beginning of 2022, the increase in public sector increased up to 2.7 percent and the private employees rose up to 2.5 percent.

Unemployment rate decreased and made another record

The unemployment rate decreased up to 5.1 percent. The decrease in unemployment rate according to different provinces can be found in the table below:

Provinces	Rate of unemployment
British Columbia	4.5 percent
New Brunswick	7.1 percent
Prince Edward Island	7.8 percent
Newfoundland and Labrador	10 percent

The unemployment rate for the people in the age group of 25 to 54 was In April 2022, the unemployment rate for men was 4.3 percent and for women, it was 4.2 percent. Decrease in unemployment rate for the diverse group can be found in the table below:

Diverse Group	Percentage decrease of unemployment rate	Total decrease of unemployment rate
First Nations women	9.3 percent	7.3 percent
Southeast Asian women	6.3 percent	4.1 percent
Filipino Men	4.1 percent	3.4 percent

The unemployment rate for the people aged 55 and older dropped by 0.5 percent and the total drop was 5.0 percent. For the women in this age, the total drop in the unemployment rate is 4.1 percent. The unemployment rate for the male youth under the age group of 15 to 24 was 11.4 percent while for the women in the same age group, it was 8.1 percent.

Adjusted unemployment rate also went up to record low

In March, the ratio of unemployed people to jobs was 1.2 percent. According to a report, the number of workers who are not actively participating but are willing to work was 409,000. This number went down up to 4.2 percent in April. The adjusted unemployment rate includes the people who want a job but are not seeking it has fallen up to 0.2 percent.

Long-term unemployment change on national level but falls in Alberta

In May 2022, the number of people searching for jobs or having temporary layoffs for 27 weeks was 208,000. The long-term unemployment has increased up to 19.7 percent. The long term unemployment depends on different types of factors. In May 2022, the total unemployment rate ranged from 9.7 percent in Prince Edward Island to 25.3 percent in Newfoundland and Labrador. Drop has been seen up to 31.8 percent in Alberta in April to 23.2 percent in May.

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High participation of core-aged people

The proportion of the people aged 15 years and above remained at 65.3 percent, whether they are employed or unemployed. The participation for the core aged women rose up to 85 percent while the participation of men rose up to 91.9 percent. Labour force participation for the people aged from 15 to 24 for men has changed to 64.4 percent and for women, it was 56.0 percent.

Participation for the age group of 55 to 64 went down

The participation rate of the people aged 55 and above dropped by 0.4 percent in May 2022 and it went up to 41.9 percent. For the women in the same age group, the participation rate was 31.7 percent. The labour force is aging so the participation rate of people aged 55 to 64 is an important aspect of labour supply. The participation of the women of this age group is 60.4 and for men, it fell up to 71.9 percent. The participation rate of the people aged 55 to 64 ranged

• 7% among First Nations people and 55.4% among Southeast Asian Canadians
• Black Canadians, 78.7% Arab Canadians, and 82.3% Filipino Canadians

Employment came down in the goods-producing sector but increased in services-producing sector

Employment in the services-producing sector grew up to 81,000 in May. The profits also increased in several industries. The rise of employment in each sector is provided in the table below:

Industry	Increase in percentage	Increase in number
Accommodation and food services	1.9 percent	20,000
Professional, scientific, and technical services	1.2 percent	21,000
Educational Services	1.6 percent	11,000
Retail Trade	1.5 percent	34,000

The rise of employment in each sector is provided in the table below:

Industry	Decrease in percentage	Decrease in number
Transportation and warehousing	2.4 percent	25.000
Finance, insurance, real estate, rental and leasing	1.4 percent	19,000

  In the goods-producing sector, the overall declination is 1.0 percent in May. There was a rise in this sector from October 2021 to March 2022 but it started decreasing after that. The decrease was seen in the manufacturing sector, which went up to 2.4 percent in May. Monthly decreases in this field have been seen in six provinces. The three provinces that are badly affected are:

Province	Decrease in percentage	Decrease in number
British Columbia	5.8 percent	11,000
Ontario	2.0 percent	16,000
Quebec	1.5 percent	7,700

  In the construction field, employment was steady in May though it declined in April. From November 2021 to March 2022, the employment rate rose and in May 2022, it went up to 5.3 percent. In the case of natural resources, there was a rise of 2.5 percent in employment in May 2022.

Employment in Alberta and two Atlantic provinces

Employment increased in Alberta, Prince Edward Island, and Newfoundland and Labrador. Decrease in employment occurred in New Brunswick and slight changes occurred in all other provinces. The employment in Newfoundland and Labrador rose up to 1.8 percent. But the rate of unemployment was 10.0 percent in all these provinces. The increase in employment was also seen in Prince Edward Island in May which went up to 1.3 percent while the unemployment rate was at 7.8 percent. In Alberta, the growth of employment was 1.2 percent and the unemployment rate was 5.3 percent. The industries that contributed to increase in employment in Alberta are Professional, scientific and technical services (11,000; 5.5%) and transportation and warehousing (8,000; 6.6%). New Brunswick saw a drop in employment which was 1.0 percent. The unemployment rate in the province was 7.1 percent. Employment rate in Quebec changed a little in May. In Ontario, the unemployment and the employment rate was 5.5 percent.

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Employment comparison between Canada and United States

The Canadian data can be adjusted to the US concepts and comparison of the labour market of both countries can be compared. If the unemployment rate of Canada is adjusted to the US concepts, it is 4.1 percent in May and is 0.5 percent higher than the United States. If the employment rate is adjusted to the US concepts, it was 62.4 percent in Canada while in the United States it was 60.1 percent in May. If the labour force is adjusted to US concepts, it was 65.1 percent in Canada and 62.3 percent in the United States. The participation of people in the age group range of 25 to 54 was 87.7 percent in Canada while in the US it was 82.6 percent.

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Wage growth, student employment, and work location

The rise in inflation and tightening of the labour market has given importance to the wage indicators. These indicators show whether the paycheques given to Canadians are in the same pace as the rising costs of goods and services. The average hourly wages have risen up to 3.9 percent on the basis of year-over-year in May. It was 3.3 percent in April.

Range of indicators shows full picture of wage dynamics

• The wage gains from March 2019 to March 2022 was 16.5 percent
• Half of the businesses expect that inflation rate will be high in 2022

Record high start of summer job season for students

The LFS keeps an eye on the labour market for the youth aged 15 to 24. This information helps in knowing about the work experience of these students.

• In May 2022, employment was given to 49.8 percent students
• In May 2021, employment was given to 39.5 percent students
• The employment rate for the female students was 53.3 percent while the unemployment rate was 10.2 percent in May 2022
• The employment rate for male students was 45.8 percent while unemployment rate was 12.0 percent

Flexibility in choosing a work location

• In May 2022, 10.2 percent employees told that they are working from home
• The percentage of hybrid workers was 6.3 percent
• 9 percent employees reported that they have the flexibility of choosing the work location.

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