Analysis — May 2011

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Employment rose by 22,000 in May, bringing gains over the previous 12 months to 273,000 (+1.6%). The employment increase in May, combined with a decline in the number of people looking for work, pushed the unemployment rate down 0.2 percentage points to 7.4%.

Employment increased in Quebec, Alberta and Saskatchewan in May. At the same time, employment declined in Newfoundland and Labrador, while there was little change in the remaining provinces.

In May, employment gains were in retail and wholesale trade as well as in information, culture and recreation. There were also declines in educational services and manufacturing.

The number of private sector employees and self-employed workers rose in May. At the same time, there were declines among public sector employees.

Full-time employment increased by 33,000 in May. Over the past 12 months, full time rose by 224,000 (+1.6%) while part time was up 50,000 (+1.5%).

Employment was up mainly among men aged 25 to 54 in May, while it changed little among the other demographic groups.

The unemployment rate for students aged 20 to 24, at 15.0%, was lower in May 2011 compared to May 2010.

Gains driven by retail and wholesale trade

In May, employment in trade increased by 34,000, offsetting declines in the previous two months. Compared to 12 months earlier, employment in this industry was down 0.7% or 19,000.

There were also employment gains in information, culture and recreation in May, up 15,000. Employment in this industry has risen by 41,000 (+5.5%) in the past 12 months.

Following steady increases in the first four months of the year, employment in educational services declined by 27,000 in May. Most of the declines occurred in post-secondary institutions.

In May, manufacturing employment was down 23,000, following little change in the previous four months. Despite this decline, employment in this industry has risen by 25,000 or 1.4% since May 2010.

Employment in construction was little changed in May, although it has increased by 3.3% (+41,000) over the past 12 months.

Despite little change in public administration in May, this industry was up 1.8% over the previous 12 months. May's employment gains from the 2011 census activities were offset by declines in other sectors of the federal administration.

In May, there were employment gains of 37,000 among private sector employees and 30,000 among self-employed workers. At the same time, employment fell by 44,000 among public sector employees.

Over the past 12 months, employment in the private sector has grown by 178,000 (+1.6%), compared to 48,000 (+1.4%) in the public sector and 48,000 (+1.8%) among the self-employed.

Increases in Quebec, Alberta and Saskatchewan

Employment in Quebec rose by 25,000 in May, bringing total gains over the past 12 months to 74,000 (+1.9%). The unemployment rate fell 0.5 percentage points to 7.3% in May, the lowest since October 2008.

In May, employment increased in Alberta (+8,500). The unemployment rate fell to 5.4%, down 0.5 percentage points from the previous month. Over the previous 12 months, employment grew by 2.8%, the fastest growth rate in the country.

In Saskatchewan, employment increased by 2,500 in May, yet was little changed compared to May 2010 (+0.2%). The unemployment rate, at 5.0%, was unchanged from the previous month and was the lowest in the country.

Following an increase the previous month, employment declined in May by 2,700 in Newfoundland and Labrador. At the same time, the unemployment rate rose to 11.9% (+0.8 percentage points). This province has the second fastest employment growth rate over the previous 12 months, up 2.1% (+4,700).

Employment edged down in Ontario in May (-16,000). Over the past 12 months, employment growth at 1.7% (+116,000) was slightly above the national average, and all in full-time work. The unemployment rate remained unchanged at 7.9% in May.

Employment growth primarily among core-aged men

In May, employment rose by 21,000 among core-aged men (25 to 54 years), while it held steady among the other demographic groups.

Compared to 12 months earlier, employment increased at the fastest pace among workers aged 55 and over, with growth of 6.6% (+86,000) among women and 4.1% (+67,000) among men. Over the same period, employment among core-aged men increased by 2.0% (+118,000), while it was little changed for core-aged women and youths.

Student summer employment

From May to August, the Labour Force Survey 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. The May survey results provide the first indicators of the summer job market, especially for students aged 20 to 24, as students aged 15 to 19 are not yet out of school for the summer. The data for June, July and August will provide further insight into the summer job market. The published estimates are not seasonally adjusted, and therefore comparisons can only be made from one year to another.

The employment rate or the proportion of students aged 20 to 24 who were employed in May was 60.8%, higher than the May 2010 rate of 58.9%. It was also 4.5 percentage points higher than that of May 2009 (56.3%), when students were especially affected by the labour market downturn.

The unemployment rate for the students aged 20 to 24 was 15.0% in May, lower than the 16.5% in May 2010.