Canada is seeing a decline in wage employment while job vacancies remain stable

Statistics Canada reported a decline in payroll jobs for June, as the number of workers receiving wages and benefits from their employers fell by 47,300, a decrease of 0.3 percent.

The decrease comes after five consecutive months of growth from January to May, in which 147,600 jobs were added, representing an increase of 0.8 percent. However, year-over-year, payroll employment still shows a positive trend, with a gain of 110,400 jobs, or 0.6 percent.

In June, job vacancies remained steady at 554,000, although they were significantly lower than the same period last year, down 190,500, or 25.6 percent.

A decline in wage employment was seen in 11 of the 20 sectors.

The most notable drops occurred in retail trade (down 15,100 jobs or 0.8 percent), manufacturing (down 10,600 jobs or 0.7 percent), construction (down 7,700 jobs or 0.7 percent percent), and management and support, waste management and repair. services (down 6,600 jobs or 0.8 percent).

The mining, quarrying, and oil and gas sector was the only sector to see growth, adding 2,500 jobs, a 1.2 percent increase. Other sectors showed little change.

The retail trade sector, which is declining from its peak in February 2023, saw another decline in payroll jobs in June, with a loss of 15,100 jobs, or 0.8 percent. In the period from February 2023 to June 2024, the sector experienced a net loss of 39,300 jobs, or 1.9 percent.

Seven of the nine sectors declined, with the biggest losses in sporting goods, hobbies, musical instruments, books and sundries (down 3,500 jobs or 1.7 percent). , clothing and accessories retailers (down 3,400 jobs or 1.6 percent). ), and general merchandisers (down 2,200 jobs or 0.8 percent).

In the manufacturing sector, payroll employment fell by 10,600 jobs, or 0.7 percent, in June, reversing the slight increase of 2,600 jobs, or 0.2 percent, seen in May. Annually, this sector lost 18,000 jobs, which is 1.1 percent.

Nine of the 21 industries reported declines, with the largest declines in wood products production (down 1,200 jobs or 1.3 percent), non-metallic mineral products production (down 1.3 percent 1,100 or 2.1 percent), and furniture and related products (down 900 jobs or 1.4 percent).

These losses were offset by gains in the production of computer and electronic products (up 700 jobs or 1.2 percent) and electrical appliances, equipment and parts (up 400 jobs or 0.9 percent ).

The construction sector saw a decline in payroll jobs in June, losing 7,700 jobs, or 0.7 percent, after little change in May and an increase in April. Despite this month-on-month decline, the sector had a net gain of 5,900 jobs, or 0.5 percent, from January to June 2024.

June’s reductions were reported in eight of the ten construction industries, with the biggest drops in other specialty trade contracting (down 2,600 jobs or 1.9 percent), hardware system construction (down by 1,400 jobs or 1.9 percent), and residential construction (down 1,100 jobs or 0.6 percent).

Construction materials contracting was the only industry in the sector to see growth, adding 500 jobs, or 0.1 percent.

In the administration and support, waste management and repair services sector, payroll employment continued to decline, falling by 6,600 jobs, or 0.8 percent, in June. The decline follows a decline of 2,800 jobs, or 0.3 percent, in May, and 3,000 jobs, or 0.4 percent, in April.

The biggest losses in June were employment services (down 3,600 jobs or 1.8 percent), research and security services (down 1,400 jobs or 1.0 percent), and facilities building and housing services (down 1,300 jobs or 0.6 percent).

However, the travel and reservation services industry saw a slight increase of 500 jobs, or 1.4 percent.

Average weekly earnings in June remained steady compared to the previous month, standing at $1,253. This follows an increase of 0.7 percent in May. On a year-over-year basis, average weekly earnings rose 4.0 percent in June, which is slightly less than the 4.1 percent growth reported in May.

Average weekly hours worked were unchanged from last month but increased by 0.6 percent year-on-year to 33.5 hours.

Job vacancies were steady in June at 554,000, and the employment rate remained at 3.1 percent, down from 4.2 percent in June 2023. The ratio of jobless to job vacancies increased slightly. up to 2.6, from 2.5 in May, continuing the upward trend in unemployment related to job vacancies from July 2022.

Five sectors reported increases in job vacancies in June:

• Administration and support, waste management, and repair services: up 4,200 jobs (16.0 percent)
• Transportation and warehousing: up 3,800 jobs (12.4 percent)
• Educational services: up 3,200 jobs (16.3 percent)
• Information and culture industries: up 2,600 jobs (54.6 percent)
• Arts, entertainment and entertainment: up 1,100 jobs (16.3 percent)

However, job vacancies decreased in accommodation and food services (down 7,300 jobs or 10.8 percent), finance and insurance (down 4,900 jobs or 20.9 percent), and other services and public administration (down 4,900 jobs or 18.6 percent).

The lodging and food services sector reported the lowest number of job vacancies since January 2021, with 59,900 vacancies in June, a decrease of 7,300 vacancies, or 10.8 percent, from the previous month. This represents a drop of 33,100 jobs, or 35.6 percent, compared to June 2023.

Total employment in this sector also fell by 8,000 jobs, or 0.6 percent, in June, and fell by 36,500 jobs, or 2.6 percent, year over year.

The job vacancy rate in this sector decreased by 0.5 percent to 4.4 percent in June, which reduced the annual decline of 2.2 percent.

As a result, the health care and social services sector, with a vacancy rate of 4.8 percent, overtook lodging and food services as the sector with the highest unemployment rate. activities in June.

In the transportation and warehousing sector, job vacancies increased by 3,800 jobs, or 12.4 percent, to 34,400 in June, reversing the decline from March to April. Year over year, job vacancies in this sector decreased by 4,800 jobs, or 12.2 percent.

The employment rate in transportation and warehouses rose 0.4 percent to 3.9 percent in June but remained 0.6 percent higher than in June 2023.

The health care and social services sector saw job vacancies remain steady at 119,500 in June, after little change in the previous two months. Vacancies in this sector remain high compared to pre-pandemic levels, accounting for 21.6 percent of all vacancies in June.

The employment rate in this sector remained unchanged at 4.8 percent in June, although it was down 1.1 percent from June 2023.

In June, three provinces saw increases in job vacancies: Manitoba (up 4,300 to 24,800), New Brunswick (up 1,800 to 10,400), and Prince Edward Island (up 1,100 to to 2,600).

On the other hand, Saskatchewan experienced a decrease in job vacancies, down by 2,600 to 17,700. Six other provinces saw little change. Manitoba reported the highest employment rate at 3.9 per cent in June, followed by British Columbia at 3.6 per cent and Prince Edward Island at 3.5 per cent.

Manitoba also has the lowest unemployment rate of any province at 5.1 per cent, as well as the lowest unemployment rate at 1.6.