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71-001-XIE
Labour Force Information
August 2004

Commentary
Employment was little changed for the second consecutive month. Job gains over the first eight months of 2004 total 113,000 (+0.7%) with almost all of the growth this year occurring in April and May. In August, the unemployment rate was unchanged at 7.2%.

While there was little change in the number of hours worked in August, hours worked has grown by 2.5% over the first eight months of 2004.

More adult men working but fewer jobs for youths

Employment among adult men rose by 25,000 in August, with gains in full-time jobs. The unemployment rate for this group was 5.8%, the lowest since December 2000. The increase in employment in August brings overall gains so far this year for adult men to 91,000 (+1.3%), all full-time.

For the third consecutive month, employment among adult women was little changed. Employment among adult women is up only 32,000 (+0.5%) since the start of the year. In August, the unemployment rate among adult women increased 0.2 percentage points to 6.2% as more women were looking for work.

Employment among youths declined by 28,000 in August, all in full-time jobs, bringing overall losses over the last two months to 42,000. This recent decrease follows strength in the second quarter of the year. In August, the unemployment rate among youths edged up 0.3 percentage points to 13.7%.

This year’s summer job market weakened for younger teenagers aged 15 to 19 (those who had been attending school full time and who plan to return in the fall) compared to the summer of 2003. The proportion of teenage students with a job fell from 46.3% during the summer of 2003 to 45.2% during the summer of 2004 (average of May to August). Over the same period, the unemployment rate for 15 to 19 year-old students rose slightly by 0.5 percentage points to 19.1%.

In contrast, the summer job market improved marginally for students aged 20 to 24. Despite a decline in August, the share of students aged 20 to 24 who were employed this summer averaged 69.9%, up 0.2 percentage points from the summer before. Over the same period, the participation rate for this group of students increased 0.6 percentage points to 77.8% and this pushed their unemployment rate up slightly by 0.5 percentage points to 10.1%.

Fewer jobs in accommodation and food services

Employment declined by 17,000 in accommodation and food services in August with losses mostly among young people in Ontario. So far this year, overall employment in the sector is down 2.8% (-29,000).

Employment in manufacturing fell by 20,000 in August. This offsets the increase in July and follows a period of little change that began during the fall of 2003. Losses in August were concentrated in transportation equipment manufacturing industries in Ontario. The manufacturing sector has not recovered the job losses incurred from November 2002 to September 2003.

Employment fell by 29,000 in educational services, the second consecutive monthly decline. The decrease in August was at the primary and secondary level in Ontario.

Following little change over the previous three months, employment rose by 27,000 in finance, insurance, real estate and leasing. This month’s increase brings gains since June 2003, when employment growth in the sector began to accelerate, to 77,000 (+8.3%).

There were 14,000 more people working in information, culture and recreation in August with gains in amusement, gambling and recreation industries. Despite losses earlier in the year, employment in the sector is up 2.9% (+21,000) from 12 months ago.

Employment edged up 6,000 in the natural resources sector in August with most of the increase occurring in Alberta and Quebec.

Public sector employment weakens

Following a strong upward trend that began in mid-2003, employment among public sector employees fell for the second consecutive month with a loss of 21,000 in August, mostly in educational services. These recent declines leave public sector employment up 23,000 (+0.8%) over the first eight months of the year.

In the private sector, employment edged up by 14,000 among employees and the number of self-employed was unchanged. Over the first eight months of 2004, the number of private sector employees is up only 50,000 (+0.5%) and the number of self-employed has increased by 39,000 (+1.6%). over the same period.

Provincial focus

In British Columbia, employment fell by 15,000, almost all among youths. Sectors with job losses include retail and wholesale trade, professional, scientific and technical services as well as transportation and warehousing. Job losses earlier in the year, along with the decline in August, offset recent gains and leave employment in the province slightly below the level at the end of 2003. In August, the unemployment rate rose 0.4 percentage points to 7.7%.

Employment in Ontario edged down 19,000 in August mostly among youths. Since the start of the year, employment is up 0.8% (+51,000) with most of the gains occurring in the second quarter of the year. Employment losses in August were concentrated in educational services at the primary and secondary level, transportation equipment manufacturing, and accommodation and food services. A decrease in labour force participation, especially among youths, left the overall unemployment rate unchanged at 6.8%.

Employment declined by 5,000 in Newfoundland and Labrador, offsetting the increase in July. There were job losses in natural resources, retail and wholesale trade, and in manufacturing. This leaves overall employment in the province up 6,000 (+2.6%) since the start of the year. The unemployment rate rose 1.2 percentage points in August to 16.2%.

In August, employment increased in Alberta by 14,000. This offsets the decline in July and leaves employment in the province up only 6,000 (+0.4%) since the start of the year. In August, there were job gains in construction, finance, insurance, real estate and leasing as well as in support activities for mining, oil and gas extraction. Despite the increase in employment in August, the unemployment rate was unchanged at 4.7%, the result of more people participating in the labour force.

Following several months of little change, employment in Quebec edged up 15,000 in August, as a gain of 22,000 in full-time was partly offset by a decline in part-time. Over the first eight months of 2004, employment in the province is up 35,000 (+1.0%) with gains mostly in professional, scientific and technical services, retail and wholesale trade as well as transportation and warehousing. In August, the unemployment rate edged down 0.2 percentage points to 8.0%.

Employment rose by 4,000 in Manitoba, offsetting most of the decline in July. Job gains occurred mainly in manufacturing and accommodation and food services. Employment in the province is now 4,000 (+0.6%) above the level at the end of 2003. Despite more jobs in August, an increase in labour force participation left the unemployment rate unchanged at 5.7%.

There was little change in employment in the other provinces.



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Date Modified: 2004-09-10 Important Notices