Ottawa, ON -- Employment in Canada increased by an estimated 97,000 in
May 2006, matching the high reached in January 2002, Statistics Canada
reports in its latest Labour Force Survey. This increase drove the
unemployment rate down 0.3 percentage points to 6.1%, the lowest since
December 1974.
The sizeable gain in employment pushed the employment rate to an
all-time high of 63.2%. Over the first five months of the year,
employment has increased by 1.4% (+220,000).
All of May's employment increase was in full time, up 151,000, the
largest increase on record. This jump was due to new entrants to the
labour market obtaining full-time employment and coincides with fewer
people working part time.
While employment growth continued to surge ahead in Alberta, there were
also large increases in Ontario and Quebec in May. Strength in the
service industries in Ontario and Quebec more than offset continued
declines in manufacturing.
At the national level, employment fell in manufacturing as well as in
educational services. However, there were large increases in a number
of industries. The largest gains in May came in finance, insurance,
real estate and leasing; health care and social assistance; and public
administration. Employment is up in almost every industry over the last
12 months.
Men, women and youths shared in May's employment gains. The healthy
showing from youths is a continuation of the strong trend that began in
September 2005.
With strength in full-time employment and a falling unemployment rate,
wages continue to rise. The average hourly wage in May was up 3.8% from
12 months ago, compared to the most recent 2.4% increase in the
Consumer Price Index. Average hourly wages jumped by 7.3% in Alberta's
tight labour market.
WIDESPREAD INDUSTRY GAINS
Employment increased sharply in finance, insurance, real estate and
leasing in May, up 31,000, bringing gains since the start of the year
to 55,000 (+5.5%). The increase this month was concentrated in Quebec.
In May, 23,000 more people were working in health care and social
assistance. Compared to 12 months ago, employment in the industry is up
3.4%, with the bulk of the increase in hospitals.
Employment rose by an estimated 22,000 in public administration, all at
the municipal and provincial levels. Despite the increase in May, there
were declines earlier in the year, leaving employment in the industry
little changed from 12 months ago.
In May, there were also more workers in accommodation and food services
(+17,000), the first increase so far this year. Most of the gain
occurred in Alberta.
There was a decline of 22,000 in manufacturing in May, with losses
spread between Ontario and Quebec. Since the end of 2002 when the
downward trend for the industry began, employment has fallen by 8.0%
(-187,000).
ALBERTA BOOM CONTINUES
In Alberta, employment rose by 32,000 in May, pushing the employment
rate to a record high of 71.4%. Gains were fuelled by an increase in
the population as workers migrated to a province where labour demand is
high. In May, the unemployment rate edged down 0.1 percentage points to
3.4%.
Alberta's added employment was primarily in the service industries,
particularly in health care and social assistance; finance, insurance,
real estate and leasing and in accommodation and food services.
Employment also increased in construction. Natural resources was little
changed in May, but has jumped by 14.0% since last December. Employment
in Alberta has grown by 4.2% so far this year — the fastest rate of
growth of all the provinces.
Following moderate growth in the first four months of the year,
employment in Ontario increased by 34,000 in May, pushing the
unemployment rate down 0.3 percentage points to 5.9%.
The manufacturing sector in Ontario continued to shed employees, with a
decline of 13,000 in May. Since the start of the year, employment in
manufacturing in Ontario has declined by 2.8% (-30,000). Ontario,
however, has been able to weather declines in manufacturing thanks to
strength from the service sector. Employment in retail and wholesale
trade continued its upward trend, increasing by 26,000 in May.
Professional, scientific and technical services also contributed to
May's employment increases with an additional 21,000 workers. In
contrast, employment was down in educational services (-17,000), yet
remains 3.4% above the level from 12 months ago.
Employment increased by 31,000 in Quebec in May, pushing the
unemployment rate down 0.4 percentage points to 7.9%, the second lowest
rate in the last 30 years. As with Alberta and Ontario, the employment
increase was spurred by strength in the service sector which more than
offset a decline of 12,000 in manufacturing. The largest increases were
found in finance, insurance, real estate and leasing, up 20,000 as well
as information, culture and recreation (+16,000).
In New Brunswick, the unemployment rate fell to 8.6% in May, a record
low for the province. The 0.5 percentage point decline in the
unemployment rate, however, was the result of adult women and men
leaving the labour force rather than an increase in employment.
RECORD FULL-TIME GAINS IN MAY
Full-time employment jumped by 151,000 in May, well in excess of the
previous record increase. These gains were widespread, but were most
pronounced in Ontario where full-time work increased by 80,000.
In both Alberta and Quebec, nearly all of the employment increase in
May came from full time (+28,000 and +27,000, respectively). While
full-time employment in Alberta has grown by 5.0% since the start of
the year, in Quebec, full time remains largely unchanged.
Nationally, full-time employment has grown by 3.1% from 12 months ago.
At the same time, part-time employment declined by 1.2%. Overall, total
employment has grown by 2.3% over the period, suggesting that many
part-timers may have switched to full-time work and that new labour
force entrants are finding full-time employment.
YOUTHS DRIVE EMPLOYMENT GROWTH IN ONTARIO
In May, employment among youths (aged 15 to 24) in Canada increased by
25,000 (+1.0%). The bulk of this increase for youths was in Ontario
where they contributed the lion's share of the overall employment
increase (+24,000). So far this year, employment growth among youths in
Ontario has been strong, up 2.6%. The same is true for Alberta, where
youth employment has jumped by 5.4% since the start of the year.
Despite a decline in May for youths in British Columbia, youth
employment has been on an upward trend for 22 months. Since August
2004, youth employment in British Columbia has grown by 16.3%
(+49,000). At the same time, their participation rate increased by 5.4
percentage points to 66.4% in May.
(Note: From May to August, the Labour Force Survey collects labour
market information about people aged 15 to 24 years who were attending
school full-time in March and intending to return to school in the
fall. Survey results for May give an early indication of the summer job
market for older students aged 20 to 24, however, many students aged 15
to 19 are not yet out of school for the summer. Survey results for
June, July and August will provide further insight into the summer job
market. The published estimates are not seasonally adjusted, therefore
comparisons can only be made on a year-over-year basis.)
Older students aged 20 to 24 encountered a similar summer job market
this May compared to May 2005. The employment rate edged down slightly
(-0.3 percentage points) to 61.9% from the 15-year high reached last
May.
EMPLOYMENT AMONG ADULT WOMEN STRENGTHENS
In May, employment for adult women (aged 25 and over) increased by
32,000 with full-time gains more than offsetting declines in part time.
So far this year, employment has grown at a faster pace for this group
than for adult men. Overall, employment among adult women was up by
2.0% (+126,000), while for adult men, it increased by 0.7% (+52,000).
Following a decline in the participation rate among adult women in
2005, participation has rebounded 0.5 percentage points since February
2006, hitting 61.3% in May.
One concept that I try to incorporate into my life on a continual basis is the 80/20 rule. It just makes so much sense. Stating that 80% of the profit of anything comes from 20% of the work or effort, this concept is also known as Pareto's Principle and is named after the Italian Economist who discovered it. It closely holds true in many different contexts:
