Canada Unemployment Rate Drops To 5.1%

December 2 – New Statistics Canada data shows that the unemployment rate decreased by 0.1 percentage points to 5.1% in November, and employment rate barely changed (+10,000).

Province wise unemployment rates

Provinces	Unemployment rate	Monthly changes (in pts)
Ontario	5.5%	-0.4
Alberta	5.8%	0.6
British Columbia	4.4%	0.2
Quebec	3.8%	-0.3
Manitoba	4.4%	-0.2
Saskatchewan	4.2%	-0.4
New Brunswick	7.3%	0.6
Nova Scotia	6.0%	-0.7
Prince Edward Island	6.8%	1.4
Newfoundland and Labrador	10.7%	0.4

Source: Statistics Canada

Statistics Canada’s new report discusses the changes in employment activities in November 2022. Below, you can find the summary of these changes.

Summary of changes in employment rates

In terms of industries, finance, insurance, real estate, renting and leasing, manufacturing, information, culture, and recreation all saw increases in employment. But, concurrently, it declined in other areas, including construction, wholesale and retail trade.

However, nearly one in ten (11.2%) workers worked in the retail trade business in November 2022. The Employee hourly wage growth stayed above 5% for the sixth consecutive month in November, increasing 5.6% (+$1.71 to $32.11) over November 2021.

Following a 0.7% increase in October, total hours worked were little changed in November. However, total hours worked increased by 1.8% over the previous year.

Additionally, employment increased in women between the ages of 25 and 54. However, it decreased for young men between the ages of 15 and 24. There was little change among the other major demographic groups.

Nevertheless, in November, the employment rate for women in the core working age range surpassed its previous high by 81.6%.

While comparing provinces, employment in Quebec increased but fell in five other provinces, including Alberta and British Columbia.

Over the last year, one-third (33.5%) of Canadian workers aged 25 to 54 participated in training outside the formal school system, such as courses, seminars, conferences, or individual lessons.

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Industries experiencing a significant change in employment

In November, the number of people working in finance, insurance, real estate, rental, and leasing increased by 21,000 (+1.6%), with the growth extending throughout the provinces. From February to October, there was no net employment growth; this increased the industry’s gains year over year to 34,000 (+2.5%).

In addition, manufacturing employment increased (+19,000; +1.1%) in November, adding to the 24,000 (+1.4%) growth in October. The industry’s employment did not change significantly from year to year. Provinces such as Quebec (+10,000; +2.1%) and Alberta (+5,900; +4.7%) saw the largest share of the monthly rise.

Employment increased by 16,000 (+1.9% in November) in the information, cultural, and recreation sector. Since public health restrictions were lifted in February 2022 due to the pandemic’s fifth wave, this was the first growth in the industry. As a result, employment in the sector increased by 35,000 (+4.5%) compared to a year ago.

In other industries, such as construction, employment declined by 25,000 (-1.6%) in November, offsetting the rise recorded in October. Most losses occurred in Alberta (-13,000; -5.5%) and British Columbia (-9,200; -3.8%).

However, construction employment increased by 84,000 (+5.9%) year on year, owing completely to gains from December 2021 to March 2022.

According to the most recent Statistics Canada data, investment in new construction fell 0.6% in September, owing primarily to a drop in the residential sector.

Moreover, for the fourth time in six months, employment in the wholesale and retail sectors decreased by 23,000 (-0.8%) in November. Employment in this sector fell by 131,000 (-4.4%) overall since May 2022, when it peaked, with most of the losses occurring in Ontario (-62,000; -5.4%) and Alberta (-32,000; -8.1%). The only sector with a net decrease in employment throughout this time was wholesale and retail trade.

Additionally, for the first time since October 2021, fewer people were employed in professional, scientific, and technical services in November, falling by 15,000 (-0.8%). However, despite this decline, the sector was responsible for more than half (+282,000) of the net job increases (+523,000) seen since February 2020.

The ability of employers and employees to work remotely during the pandemic has contributed to sustained growth. For example, 64.3% of industry employees typically worked from home, either entirely or in part, as of November 2022.

Other changes in November 2022

Employment increased by 10,000 (+0.1%) in November, followed by 108,000 (+0.6%) in October. The overall total employment remained stable due to balancing shifts in several industries.

Similarly, increases in employment in Quebec (+28,000; +0.6%) were countered by decreases in five other provinces, including Alberta and British Columbia.

Employment among those aged 25 to 54 increased by 38,000 (+0.3%) in November, marking the third consecutive monthly gain. Most of the November rise was due to core-aged women (+25,000; +0.4%).

Additionally, in November, total employment among youth aged 15 to 24 changed slightly monthly and year-over-year. However, young men and women trends have differed during the last 12 months.

For example, employment among young males declined by 23,000 (-1.7%) monthly in November, while the employment rate barely changed ((56.4%).

In addition, full-time workers increased by 51,000 (+0.3%) in November. Since November 2021, when full-time employment first exceeded its pre-COVID-19 pandemic level, full-time employment has risen by 460,000 (+2.9%), with growth concentrated among core-aged males (+212,000; +3.5%) and women (+169,000; +3.4%).

Moreover, full-time employment increased by 49,000 (+6.8%) among young men aged 15 to 24. In the year to November, the share of full-time workers increased by 0.8 percentage points to 81.9%.

The number of employees in the public and private sectors remained stable in November. However, employees in the public and private sectors increased at a comparable rate during the last year.

Similarly, the number of self-employed people remained stable in November. As a result, self-employment increased slightly from October 2021 to May 2022, but there has been minimal net growth in recent months.