As public health restrictions begin to ease across the country Canadian employment made a small increase after a significant wave of job losses from April – May. Although any increase in employment is positive for Canadians, Statistics Canada reports the employment growth in June was entirely in part-time work and concentrated among youth aged 15 to 24. Meanwhile after falling by 143,000 over the previous two months, full-time work was little changed.
With some good news to report, the Canadian unemployment rate fell by 61,000 while the labour force grew by 170,000 in June. Additionally, employment rates for youth, women aged 55 and older, newcomers to Canada and Indigenous Peoples all had a small, yet significant, increase. The unemployment rate still remains over two per cent higher than pre-pandemic levels and 0.3 per cent higher than the post-pandemic low of 7.5 per cent recorded in March 2021.
Looking forward, Statistics Canada predicts further easing of public health restrictions and creation of new opportunities for both workers and employers. This should result in an increase in the level of labour market churn, or the number of workers becoming newly employed, changing jobs or leaving the labour force to pursue other interests.
Highlights
Employment rebounds in June
- Employment rose by 231,000 (+1.2%) in June, following a cumulative decline of 275,000 over the previous two months.
- Employment growth was entirely in part-time work and concentrated among youth aged 15 to 24.
- After falling by 143,000 over the previous two months, full-time work was little changed.
- The number of employed people working less than half their usual hours fell by 276,000 (-19.3%).
- The number of self-employed workers fell by 63,000 (-2.3%); down 7.2% compared with February 2020.
- In the three months ending in June, the employment rate for Indigenous people was 55.8%, little changed from February 2020 (56.2%) (not seasonally adjusted).
- Total hours worked were little changed and were 4.0% below their pre-pandemic level.
- The number of Canadians working from home fell by nearly 400,000 to 4.7 million.
- Employment increased in Ontario, Quebec, British Columbia and Nova Scotia.
Unemployment rate falls while the labour force expands
- The unemployment rate was 7.8%, as the total number of unemployed Canadians fell by 61,000 (-3.7%).
- The number of people in the labour force—either employed or unemployed—increased by 170,000 (+0.8%).
- The labour force participation rate increased 0.6 percentage points to 65.2%.
- The unemployment rate among visible minority Canadians aged 15 to 69 fell 1.3 percentage points to 10.1% (not seasonally adjusted).
Youth employment grows as public health restrictions are eased
- Employment among youth aged 15 to 24 rose by 164,000 (+7.1%), the largest single-month increase for this age group since July 2020.
- The number of unemployed youth aged 15 to 24 fell by 50,000, with declines among both young women and young men.
- In June, the employment rate for returning students aged 20 to 24 was 67.5%, up from 51.0% in May.
Employment rises in several industries providing in-person services
- The number of people working in accommodation and food services rose by 101,000 (+11.8%).
- In the accommodation and food services industry, workers earned an average of $17.35 per hour; the all-industry average was $29.70.
- With restrictions on non-essential stores eased in many provinces, employment in retail trade rose by 75,000 (+3.4%).
- The number of people working in goods-producing industries fell by 48,000, the second consecutive monthly decline.
- Employment in the construction industry fell by 23,000 (-1.6%) and in natural resources by 9,800 (-2.9%).
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