Labour Force Survey

View the most recent version.

Employment growth resumed in June, up an estimated 35,000, following little change in April and May. Despite this gain, the national unemployment rate remained at 6.1% for the fifth consecutive month, as more people entered the labour force in June in search of work.

The rise in employment in June brings overall gains for the first half of 2007 to an estimated 197,000 (+1.2%), similar to the growth observed over the same period in 2006.

For the second straight month, full-time work increased while part-time employment fell. Adult women accounted for most of June's increase in full-time and all of the decline in part-time employment.

There were more people working in Quebec, Alberta and New Brunswick in June. Over the first half of 2007, the provinces with employment growth above the national average (+1.2%) were: New Brunswick (+3.1%), Alberta (+2.5%), British Columbia (+1.9%), Quebec (+1.8%) and Manitoba (+1.6%). In contrast, there were employment declines over the first half of 2007 in Newfoundland and Labrador as well as in Saskatchewan.

Ontario, which accounts for nearly 40% of total employment in Canada, registered growth of only 0.4% over the past six months. Employment growth since the start of 2007 in Nova Scotia and Prince Edward Island was also below the national average.

The largest employment increases in June were in retail and wholesale trade; business, building and other support services; and educational services. Manufacturing employment, however, continued its downward trend.

Over the first half of 2007, manufacturing employment plummeted by 4.3%. However, there has been robust growth in a number of industries, including information, culture and recreation; accommodation and food services; construction; utilities; and trade.

During the second quarter of 2007, average hourly wages rose by an estimated 3.2% from the same three-month period last year. According to the most recent comparable figures, the Consumer Price Index increased by 2.2%.

More workers in sales but fewer on the factory floor

Employment in retail and wholesale trade in June jumped by an estimated 31,000. Nearly all of this increase occurred in Quebec.

The gain in trade was offset by a continued slump in manufacturing employment, which was down 31,000 in June, mainly in Ontario. Over the last 12 months, factory employment fell by an estimated 103,000 nationally. Losses were widespread across the sector, with transportation equipment manufacturing affected the most.

In June, employment increased by 15,000 in business, building and other support services, mainly in Ontario and Alberta. Educational services were up 14,000 for the month, with the largest gains in Quebec.

The number of people working in natural resources declined by an estimated 7,000 in June, mostly in Ontario and Newfoundland and Labrador. This leaves employment in the industry slightly below the level at the start of 2007, but still well above the level in June 2006.

Full-time employment growth among adult women

For the second consecutive month, there was growth in full-time employment while the number of part-time workers declined. In June, full-time employment increased by an estimated 63,000, partly offset by a decrease of 28,000 in part-time work.

The increase in full-time employment in June affected mainly adult women aged 25 and over. In fact, this was the only group to experience a significant employment gain in June, up an estimated 15,000, as the number of adult women working part time fell but was more than offset by gains in full-time employment. Overall employment among adult men and youths was little changed.

The unemployment rate in June stood at 4.7% for adult women and 5.4% for adult men. In July 2006, the unemployment rate for both men and women was matched at 5.4%. Since then, the unemployment rate for men has remained relatively stable, while the rate for women has been steadily declining, resulting in a widening gap. Over the last 12 months, employment growth among adult women (+2.9%) has been much stronger than for adult men (+1.3%).

Self-employment trend is up

Although the number of self-employed edged up only 12,000 in June, self-employment has followed a strong upward trend since October 2006 with gains since then totalling 174,000 (+7.0%). Several industries have increased their number of self-employed workers, including accommodation and food services; educational services; "other" services; and finance, insurance, real estate and leasing.

Over this same eight-month period, the number of employees has grown more slowly, up 99,000 (+0.7%) with gains of 62,000 in the private sector and 37,000 in the public sector.

Quebec leads the country in employment growth for June

Employment in Quebec increased by an estimated 22,000, all in full-time work, pushing the unemployment rate down 0.3 percentage points to 6.9%, the lowest in 33 years. With June's employment increase, the employment rate reached an all-time high of 61.1%. So far in 2007, employment in the province has increased by 70,000 (+1.8%) with the largest gains in accommodation and food services; trade; and construction. There have been declines, however, in factory employment.

In June, there were 12,000 more workers in Alberta, bringing total gains for the province during the past six months to 47,000 (+2.5%). Increases over the first half of 2007 occurred in a number of industries, including trade; business, building and other support services; construction; and natural resources. Despite the employment gain in June, the unemployment rate was unchanged at 3.8% as more people entered the labour force. The participation rate for the province, at 74.2%, attained a new record in June and continued to be above that of all other provinces.

Employment also increased in New Brunswick, up 4,000, bringing the unemployment rate for the province to a 33-year low of 6.8%. Over the first half of 2007, the number of employed New Brunswickers increased by 3.1% (+11,000), the strongest rate of growth in the country. Just over half of this gain occurred in information, culture and recreation as well as in educational services. The employment rate rose 0.7 percentage points in June to 59.6%, the highest rate ever for this province.

Employment growth cools for Saskatchewan

There were an estimated 4,000 fewer employed people in Saskatchewan in June, leaving employment in the province down 1.1% (-6,000) from the beginning of 2007. This is in contrast to the robust gains observed throughout 2006, when employment grew by 4.9%. Despite recent employment losses, the unemployment rate of 4.4% in June remains among the lowest in the country.

Employment also declined in Newfoundland and Labrador in June (-3,000), leaving employment in the province slightly below the level of December 2006. The unemployment rate edged up 0.2 percentage points in June to 13.1%.

While employment in Ontario was little changed in June, growth continued to be dampened by employment losses in manufacturing, down 19,000 in June and 50,000 over the first half of 2007. Despite strength in various service industries, Ontario's employment growth for the first six months of 2007 (+0.4%) continues to lag well behind the national average.

Although employment in British Columbia was little changed in June, it has grown by 1.9% so far in 2007 with the largest increases in retail and wholesale trade as well as in construction. A substantial increase in the number of people working part time in June was offset by a decline in full-time employment.

The North

The Labour Force Survey (LFS) also collects labour market information about the North. This information is not seasonally adjusted and is produced in the form of three-month moving averages. Comparisons should only be made on a year-over-year basis.

The proportion of people aged 15 and over who are working remained high in Canada's three northern territories. For the 10 largest communities in Nunavut, the employment rate increased to 64.8% in June (three-month average of April, May and June), up from 59.6% a year earlier.

In contrast, the employment rate in the Yukon fell from 73.5% in June 2006 to 70.0% in June 2007 (three-month average). In the Northwest Territories, there was little change in the labour market over the past year, with the employment rate at 73.3% this June.

Summer employment promising for 15- to 16-year-olds and 20- to 24-year-olds

From May to August, the LFS collects labour market information about young people aged 15 to 24 who were attending school full time in March and who intend to return to school in the fall. Survey results for May and June give an early indication of the summer job market for older students aged 20 to 24. However, many students aged 15 to 19 were not yet out of school for the summer during those months. Survey results for July and August will provide further insight into the summer job market for younger students. The published estimates are not seasonally adjusted, therefore comparisons can only be made on a year-over-year basis.

The employment rate for students (those aged 15 to 24 who were studying full time in March and who plan to return to their studies in September) reached a 17-year June high of 52.4%, up 1.5 percentage points from June 2006.

A higher share of students aged 15 to 16 were employed in June (31.6%), up 3.1 percentage points from June 2006. This is the highest June employment rate these students have experienced since June 1991. The increase in employment was all in part-time work. This is not surprising since these teenagers were still preoccupied with school and exams in mid-June, while those with jobs nearly all worked part time. Compared with June 2006, the unemployment rate for this group decreased 2.5 percentage points to 16.8%.

Students aged 20 to 24 also found more employment opportunities in June (72.1%) compared with June 2006 (69.7%). However, the employment rate was still far from the all-time high reached in June 1989 (79.7%). The increase in employment was all in full-time work.

The only students to experience little change in their employment rate were those aged 17 to 19. With more of this group entering the labour force in search of work, their unemployment rate increased to 12.3% in June from 10.3% 12 months earlier.

Note: The LFS estimates are based on a sample, and are therefore subject to sampling variability. Estimates for smaller geographic areas or industries will have more variability. For an explanation of the sampling variability of estimates, and how to use standard errors to assess this variability, consult the "Data quality" section of the publication Labour Force Information (71-001-XWE, free).

Available on CANSIM: tables 282-0001 to 282-0042, 282-0047 to 282-0064 and 282-0069 to 282-0099.

Definitions, data sources and methods: survey number 3701.

Available at 7:00 a.m. online under The Daily module of our website.

A more detailed summary, Labour Force Information (71-001-XWE, free), is now available online for the week ending June 16. From the Publications module of our website, under Free Internet publications, choose Labour. LAN and bulk prices are available on request. The CD-ROM Labour Force Historical Review, 2006 (71F0004XCB, $209) is now available.

Data tables are also now available online. From the By Subject module of our website, choose Labour.

The next release of the Labour Force Survey will be on August 10.

For general information or to order data, contact Client Services (toll-free 1-866-873-8788; 613-951-4090; labour@statcan.gc.ca). To enquire about the concepts, methods or data quality of this release, contact Vincent Ferrao (613-951-4750) or Jane Lin (613-951-9691), Labour Statistics Division.

Table(s).