June job growth in Canada led by Ontario, Nova Scotia and Newfoundland
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Canada saw a net increase in employment of 60,000 positions filled in June, up 0.3 percent from the previous month as young and middle-aged men are much more likely to work full-time jobs in Canada.
Women fared less well, even though a total of 110,000 full-time jobs were added.
“Job growth in June was concentrated among young men ages 15 to 24, an increase of 31,000 jobs, and men ages 25 to 54, an increase of an additional 31,000 jobs,” reports Statistics Canada.
“Employment rates among women of all ages changed little in June.”
Wholesale and retail trade accounted for 33,000 jobs, manufacturing for 27,000, health and social assistance for another 21,000 and transport and warehousing for 10,000 jobs, according to the June labor force survey.
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“Meanwhile, declines were recorded in construction, which saw the loss of 14,000 jobs, 14,000 jobs in education services and 6,000 jobs in agriculture,” notes Statistics Canada.
The net increase in employment in June was the biggest improvement for workers in Canada since January, enough to raise the employment rate, the share of the population aged 15 and over who are employed, by 0.1 percentage point to 62 .2. percent in June.
“June employment gains were all in full-time work, which saw an increase of 110,000 jobs as the number of people working part-time fell by 50,000,” notes Statistics Canada.
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Median hourly wages rose a relatively modest 4.2 percent in June, or $1.32 to $33.12 year-over-year.
“This was the slowest annual growth in median hourly wages since May 2022,” notes Statistics Canada. “From February to May 2023, the year-over-year growth in average hourly wages fluctuated between 5.1 percent and 5.4 percent.”
Even as more workers entered the workforce – and more full-time jobs – the Canadian labor market also saw a rise in unemployment in June.
Unemployment rises to 5.4%
“The unemployment rate rose 0.2 percentage point to 5.4 percent in June, after a similar increase of 0.2 percentage point in May,” notes Statistics Canada.
“The increase took the rate to its highest level since February 2022 when it was also 5.4 percent. There were 1.1 million people unemployed in June, an increase of 54,000 or 4.9 percent in the month.”
Despite the rise in unemployment, that rate remained below the pre-COVID-19 pandemic average of 5.7 percent recorded in the 12 months leading up to February 2020, Statistics Canada reports.
On the unemployment lines, men and women in the core age, those between the ages of 25 and 54, do equally well, while both men and women feel the pinch of an unemployment rate of 4.4 percent.
After rising 0.7 percentage point in May, the unemployment rate of young women aged 15 to 24 rose by a full percentage point in June to 10.5%, the highest level since October 2022.
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Among teens and younger adults, ages 15 to 24, young men fare worse, with an unemployment rate of 12.5 percent in June for young men, while the comparable rate for young women was 10.5 percent. However, the situation for young women has worsened in recent months, with their unemployment rate rising 0.7 percent in May and rising by a full percentage point in June.
Those June employment numbers for June are partly a reflection of the fact that students are slower to get summer jobs this year than they were last year.
Last year, 56.7 percent of teenage girls and young women planning to return to school had found a job by June. This year, only 53.4 percent of them did, down from the pre-pandemic average of 54.3 percent for the month.
“The decline in June follows a slow start to the summer job season for young women in May,” Statistics Canada reports.
Female students received fewer summer jobs in June of this year
“On an annualized basis, the employment rate of female returning students aged 15 to 24 had fallen by 4.4 percentage points to 49.1 percent in May 2023.”
Teenage boys and young men returning to school did not see a drop in their employment rates in June, but their employment rates were already significantly lower than their female counterparts.
“The employment rate among male returning students aged 15 to 24 was little changed at 49.9 percent year-on-year in June,” notes Statistics Canada. “The rate was slightly above the pre-pandemic average of 48 percent for the month of 2017 to 2019.”
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