Canadian Employment and Unemployment Report for June

In June, the labor market showed slight stability with notable changes in some sectors and regions:

Employment and Unemployment: Total employment: remained almost unchanged (-1,400 jobs; -0.0%), with the employment rate falling by 0.2 percentage points to 61.1%. Unemployment: The unemployment rate rose by 0.2 percentage points to 6.4%, and has increased by 1.3 percentage points since April 2023.

Breakdown by age group and gender: Young males (15-24 years): Employment decreased by 13,000 jobs (-0.9%). And women of prime working age (25-54 years): Employment increased by 19,000 jobs (+0.3%).

Sectoral changes decrease: Transportation and storage sector: -12,000 jobs (-1.1%). Public administration: -8,800 jobs (-0.7%).

HIGH: Accommodation and food services: +17,000 jobs (+1.5%). Agriculture: +12,000 jobs (+5.5%).

Geographic changes Decrease: Quebec: -18,000 jobs (-0.4%). And rising: New Brunswick: +3,000 jobs (+0.8%). Newfoundland and Labrador: +2,600 jobs (+1.1%).

Hours and wages: Total hours worked: decreased by 0.4% in June, and increased by 1.1% year-on-year. Hourly wages: rose 5.4% in June year over year, after 5.1% growth in May (not seasonally adjusted)

Employment of Returning Students: Employment rate for returning students (15-24 years): reached 46.8% in June, down from 51.7% the previous year (not seasonally adjusted). These data may show stability in the labor market with some movements in specific sectors and geographic regions. . The slight increase in the unemployment rate and changes in wages and working hours reflect shifts in the economy that require continuous monitoring and analysis to understand future trends.

Employment remained virtually unchanged in June Employment remained virtually unchanged (-1,400 jobs; -0.0%) in June, after little change in May (+27,000 jobs; +0.1%). The employment rate, which represents the proportion of the population ages 15 and older who is working, fell 0.2 percentage point to 61.1% in June, the eighth decline in the past nine months

Annual growth of employment

On an annual basis, employment rose by 1.7% (+343,000 jobs) in June 2024. The public sector saw faster growth (+4.3%; +183,000 jobs) than the private sector (+0.8%; +106,000 jobs). The number of self-employed workers also rose by 2.1% (+55,000 jobs) year-on-year, but remained below its 2017-2019 average (-4.3%; -121,000 jobs), before the Covid-19 pandemic.

Employment rate declines among young men and working-age men: The employment rate among young men aged 15-24 declined in June (-1 3,000; -0.9%), while it remained steady for young women. The overall youth employment rate has been on a strong downward trend since April 2023, falling by 4.4 percentage points to 54.8% in June 2024.

For men aged 25-54, employment was little changed (-1 4,000; -0.2%) in June, and the employment rate fell by 0.5 percentage points to 86.6%. This extended a downward trend in the employment rate from a recent high of 88.2% in June 2023. The rate in June 2024 was similar to the pre-pandemic average of 86.5% observed from 2017 to 2019.

On an annual basis, employment rose by 1.7% (+343,000 jobs) in June 2024. The public sector saw faster growth (+4.3%;

Employment rate of students returning to college is at its lowest level since June 1998 From May to August, the Labor Force Survey collects labor market information from students who entered school full-time in March and who intend to return to school full-time in the fall.

In June, the employment rate for returning students ages 15-24 was 46.8%, the lowest rate since June 1998, excluding June 2020 during the first year of the pandemic (not seasonally adjusted). This represents a significant decline from the recent high of 53.7% in June 2022.

Increasing unemployment rate among students

The unemployment rate among returning students was 15.9% in June 2024, up 3.8 percentage points from the previous year. This indicates that students face more difficulties in finding work when they enter the summer job market.

Gender disparities: In June, the employment rate for returning male students was 44.4%, down 5.5 percentage points from the previous year. Among returning female students, 49.0% were employed in June, down 4.4 percentage points from the same period.

Increasing Part-Time Employment: Returning students who were employed in June 2024 were more likely to be working part-time (68.0%) than those in June 2023 (66.9%) and June 2022 (63.9%).

These numbers show a deterioration in labor market conditions for students returning to university, reflecting significant challenges in finding summer job opportunities. Gender differences in employment rates and declines in full-time employment indicate a need to focus on improving employment opportunities for this age group.

Wages rose year-on-year in June On a year-over-year basis, median hourly wages for employees rose 5.4% (+$1.79 to $34.91) in June, after 5.1% growth in May. Median hourly wages for employees rose 5.2% (+$1.62 to $32.57) among women in June and 5.5% (+$1.92 to $37.13) among men.

Wage growth has remained relatively spread across the wage distribution. On an annual basis, median hourly earnings for employees in the bottom 25% of the wage distribution rose 4.2% (to $17.74 per hour) in June, while for those in the top 25% of the wage distribution it rose 6.9% to $61.27 per hour. In general, annual growth in average hourly wages can reflect a range of factors, including changes in wages, employment composition, and base year effects.

Employment in the transportation and warehousing sector decreased for the second month in a row

Employment in the transportation and warehousing sector fell by about 12,000 jobs (-1.1%) in June, after a decline of 21,000 jobs (-1.9%) in May. Employment in this sector did not change much year on year.

In public administration, employment fell by 8,800 (-0.7%) in June, the first decline since August 2023. On an annual basis, employment in public administration rose by 24,000 (+2.0%).

Employment rose by 17,000 jobs (+1.5%) in accommodation and food services in June, marking the third straight monthly increase, bringing total increases to 54,000 jobs (+4.9%) since March.

In agriculture, employment rose by 12,000 (+5.5%) in June, the first increase since July 2023. Despite this increase, employment in agriculture fell by 18,000 (-7.2%) year over year in June 2024.

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