National jobless rate dips to 7.2 per cent in July despite slow job growth as fewer workers enter the labour market
Following three consecutive monthly gains, employment held relatively steady in July according to the latest figures from Statistics Canada.
The national unemployment rate edged down 0.1 percentage points in July to 7.2 per cent as fewer people entered the labour market in search of work. Despite a pause during the first quarter of the year, employment has shown strength over the past 11 months with growth of 2.1 per cent (or 325,000 jobs) since August 2003 when the recent upward trend began. (See bottom of page for unemployment rate chart.)
Part-time employment up, full-time work down
An increase of 48,000 part-time jobs was offset by full-time losses of 39,000 jobs. The gain in part-time employment is the first significant increase so far this year and leaves the number of people working part time down 0.7 per cent (22,000 people) since the start of the year.
The decline in full-time employment in July follows a string of 10 consecutive monthly gains totalling 342,000 (up 2.7 per cent) since last August.
Employment among adult men rose by 32,000 in July with gains in full- and part-time jobs. This pushed the unemployment rate among men down 0.3 percentage points to 5.9 per cent, the lowest since February 2001. The increase in employment in July brings overall gains so far this year for adult men to 66,000 (up 0.9 per cent), all in full-time work.
The summer job market improved for students aged 20 to 24 (those who had been attending school full time and who plan to return in the fall). In July, the employment rate for 20 to 24 year-old students rose by 1.9 percentage points to 77 per cent compared with July 2003. Over the same period, the unemployment rate among this group of students edged down 0.1 percentage points to 7.7 per cent.
For younger students aged 15 to 19, the summer job market did not improve. The proportion of teenage students with a job edged down from 51.6 per cent in July 2003 to 51 per cent in July 2004. Compared with a year ago the unemployment rate for 15- to 19-year-old students rose slightly by 0.8 percentage points in July to reach 20.9 per cent.
More factory jobs
Employment in the manufacturing sector rose by 21,000 in July, the first significant increase in more than a year. The increase in July was mostly in Ontario with gains in the province spread across a number of industries. The increase in factory jobs at the national level for July follows a period of little change that began during the fall of 2003. Added manufacturing employment in July coincides with recent strength in shipments and continued accumulation of inventories. Furthermore the most recent Business Conditions Survey for July indicates an improvement in manufacturer's employment prospects. Despite more factory jobs in July, employment in manufacturing has not fully recovered from the losses incurred between November 2002 and September 2003.
Employment in construction increased by 19,000 in July, building on the gains observed over the previous four months. Following a pause earlier in the year, employment in this sector was up 61,000 (up 6.5 per cent) since March, resuming the upward trend that began about three years ago. The employment gain in July was concentrated in Quebec.
The number of people employed in professional, scientific and technical services was up 18,000 in July bringing gains so far this year to 48,000 (up 4.9 per cent). The largest increases in July were in management, scientific and technical services.
Employment in health care and social assistance declined by an estimated 24,000, mostly in hospitals. The overall decrease in July offsets gains observed during the second quarter of the year. Despite this decline, employment in the sector was up 2.7 per cent (46,000 jobs) from 12 months ago.
Employment in July decreased by 20,000 in educational services with the decline spread across most educational groups. The decrease in July was observed in Alberta, Ontario and Saskatchewan. At the national level there has been weakness in this sector over the first seven months of the year and the decline in July leaves employment at about the same level as a year ago.
Agricultural employment declined by 9,000 in July, mostly in crop production in Ontario. This leaves employment in the sector just slightly below the level of July 2003.
Private sector employment up in July
Job gains in July for the private sector totalled 39,000 while employment in the public sector declined by 30,000. The employment increase in the private sector was concentrated among employees as there was little change in the number of self-employed. Job losses in the public sector were mainly in educational services and health care and social assistance.
Despite the decline in July, employment among public sector employees was up 1.5 per cent (45,000 jobs) over the first seven months of the year, while the number of private sector employees had increased at a much slower pace of 0.3 per cent over the same period (36,000 jobs).Year-to-date employment gains among the self-employed were up 1.6 per cent (39,000 jobs).
Provincial focus
Employment increased by 5,000 in Newfoundland and Labrador, bringing total gains since the start of the year to 11,000 (up 5.1 per cent). Several sectors contributed to the increase in July. Over the first seven months of the year the largest gains have been in retail and wholesale trade, construction and manufacturing. The unemployment rate in July fell 1.6 percentage points to 15 per cent.
Employment increased by 1,500 in Prince Edward Island, spread across a number of industries. This pushed the unemployment rate down 0.8 percentage points to 11.2 per cent. July’s gain partly offsets small monthly losses observed earlier in the year and leaves employment in the province at about the same level as at the start of the year.
Employment in Ontario was little changed (up 9,000 jobs) as an increase of 45,000 part-time jobs was partly offset by losses of 37,000 in full-time jobs. Following weakness in the first quarter of the year, employment in the province was up 71,000 (up 1.1 per cent) since last March. The unemployment rate in the province edged down 0.2 percentage points in July to 6.8 per cent.
In Quebec, employment continued to show little change (up 10,000 jobs) in July. Gains in construction, business, building and other support services, as well as in finance, insurance, real estate and leasing were partly offset by losses in public administration and health care and social assistance. Over the first seven months of 2004, employment in the province was up just 0.6 per cent (21,000 jobs). In July the unemployment rate was unchanged at 8.2 per cent.
Employment declined by 13,000 in Alberta and the unemployment rate edged up 0.1 percentage points to 4.7 per cent. The decrease in employment was in educational services, finance, insurance, real estate and leasing, as well as in retail and wholesale trade. The decline in July offsets small monthly gains earlier in the year and leaves employment in the province at about the same level as at the start of the year.
In July, employment fell by 5,000 in Manitoba after several months of little change, leaving employment in the province at about the same level as at the start of the year. Job losses were spread across a number of sectors in July. Despite the decline in employment, the unemployment rate edged down 0.1 percentage points to 5.6 per cent as fewer people were participating in the labour force.
Employment declined by 3,000 in Saskatchewan with losses in educational services and finance, insurance, real estate and leasing. These losses were partly offset by a gain in health care and social assistance. Despite the overall decline in employment, the unemployment rate was unchanged at 5.2 per cent, the result of a decrease in labour force participation.
There was little change in employment in the other provinces.
The national unemployment rate edged down 0.1 percentage points in July to 7.2 per cent as fewer people entered the labour market in search of work. Despite a pause during the first quarter of the year, employment has shown strength over the past 11 months with growth of 2.1 per cent (or 325,000 jobs) since August 2003 when the recent upward trend began. (See bottom of page for unemployment rate chart.)
Part-time employment up, full-time work down
An increase of 48,000 part-time jobs was offset by full-time losses of 39,000 jobs. The gain in part-time employment is the first significant increase so far this year and leaves the number of people working part time down 0.7 per cent (22,000 people) since the start of the year.
The decline in full-time employment in July follows a string of 10 consecutive monthly gains totalling 342,000 (up 2.7 per cent) since last August.
Employment among adult men rose by 32,000 in July with gains in full- and part-time jobs. This pushed the unemployment rate among men down 0.3 percentage points to 5.9 per cent, the lowest since February 2001. The increase in employment in July brings overall gains so far this year for adult men to 66,000 (up 0.9 per cent), all in full-time work.
The summer job market improved for students aged 20 to 24 (those who had been attending school full time and who plan to return in the fall). In July, the employment rate for 20 to 24 year-old students rose by 1.9 percentage points to 77 per cent compared with July 2003. Over the same period, the unemployment rate among this group of students edged down 0.1 percentage points to 7.7 per cent.
For younger students aged 15 to 19, the summer job market did not improve. The proportion of teenage students with a job edged down from 51.6 per cent in July 2003 to 51 per cent in July 2004. Compared with a year ago the unemployment rate for 15- to 19-year-old students rose slightly by 0.8 percentage points in July to reach 20.9 per cent.
More factory jobs
Employment in the manufacturing sector rose by 21,000 in July, the first significant increase in more than a year. The increase in July was mostly in Ontario with gains in the province spread across a number of industries. The increase in factory jobs at the national level for July follows a period of little change that began during the fall of 2003. Added manufacturing employment in July coincides with recent strength in shipments and continued accumulation of inventories. Furthermore the most recent Business Conditions Survey for July indicates an improvement in manufacturer's employment prospects. Despite more factory jobs in July, employment in manufacturing has not fully recovered from the losses incurred between November 2002 and September 2003.
Employment in construction increased by 19,000 in July, building on the gains observed over the previous four months. Following a pause earlier in the year, employment in this sector was up 61,000 (up 6.5 per cent) since March, resuming the upward trend that began about three years ago. The employment gain in July was concentrated in Quebec.
The number of people employed in professional, scientific and technical services was up 18,000 in July bringing gains so far this year to 48,000 (up 4.9 per cent). The largest increases in July were in management, scientific and technical services.
Employment in health care and social assistance declined by an estimated 24,000, mostly in hospitals. The overall decrease in July offsets gains observed during the second quarter of the year. Despite this decline, employment in the sector was up 2.7 per cent (46,000 jobs) from 12 months ago.
Employment in July decreased by 20,000 in educational services with the decline spread across most educational groups. The decrease in July was observed in Alberta, Ontario and Saskatchewan. At the national level there has been weakness in this sector over the first seven months of the year and the decline in July leaves employment at about the same level as a year ago.
Agricultural employment declined by 9,000 in July, mostly in crop production in Ontario. This leaves employment in the sector just slightly below the level of July 2003.
Private sector employment up in July
Job gains in July for the private sector totalled 39,000 while employment in the public sector declined by 30,000. The employment increase in the private sector was concentrated among employees as there was little change in the number of self-employed. Job losses in the public sector were mainly in educational services and health care and social assistance.
Despite the decline in July, employment among public sector employees was up 1.5 per cent (45,000 jobs) over the first seven months of the year, while the number of private sector employees had increased at a much slower pace of 0.3 per cent over the same period (36,000 jobs).Year-to-date employment gains among the self-employed were up 1.6 per cent (39,000 jobs).
Provincial focus
Employment increased by 5,000 in Newfoundland and Labrador, bringing total gains since the start of the year to 11,000 (up 5.1 per cent). Several sectors contributed to the increase in July. Over the first seven months of the year the largest gains have been in retail and wholesale trade, construction and manufacturing. The unemployment rate in July fell 1.6 percentage points to 15 per cent.
Employment increased by 1,500 in Prince Edward Island, spread across a number of industries. This pushed the unemployment rate down 0.8 percentage points to 11.2 per cent. July’s gain partly offsets small monthly losses observed earlier in the year and leaves employment in the province at about the same level as at the start of the year.
Employment in Ontario was little changed (up 9,000 jobs) as an increase of 45,000 part-time jobs was partly offset by losses of 37,000 in full-time jobs. Following weakness in the first quarter of the year, employment in the province was up 71,000 (up 1.1 per cent) since last March. The unemployment rate in the province edged down 0.2 percentage points in July to 6.8 per cent.
In Quebec, employment continued to show little change (up 10,000 jobs) in July. Gains in construction, business, building and other support services, as well as in finance, insurance, real estate and leasing were partly offset by losses in public administration and health care and social assistance. Over the first seven months of 2004, employment in the province was up just 0.6 per cent (21,000 jobs). In July the unemployment rate was unchanged at 8.2 per cent.
Employment declined by 13,000 in Alberta and the unemployment rate edged up 0.1 percentage points to 4.7 per cent. The decrease in employment was in educational services, finance, insurance, real estate and leasing, as well as in retail and wholesale trade. The decline in July offsets small monthly gains earlier in the year and leaves employment in the province at about the same level as at the start of the year.
In July, employment fell by 5,000 in Manitoba after several months of little change, leaving employment in the province at about the same level as at the start of the year. Job losses were spread across a number of sectors in July. Despite the decline in employment, the unemployment rate edged down 0.1 percentage points to 5.6 per cent as fewer people were participating in the labour force.
Employment declined by 3,000 in Saskatchewan with losses in educational services and finance, insurance, real estate and leasing. These losses were partly offset by a gain in health care and social assistance. Despite the overall decline in employment, the unemployment rate was unchanged at 5.2 per cent, the result of a decrease in labour force participation.
There was little change in employment in the other provinces.
| Jurisdiction | June 2004 | July 2004 | % change |
| Canada | 7.3 | 7.2 | -0.1 |
| Newfoundland and Labrador | 16.6 | 15.0 | -1.6 |
| Prince Edward Island | 12.0 | 11.2 | -0.8 |
| Nova Scotia | 8.8 | 8.4 | -0.4 |
| New Brunswick | 10.0 | 10.0 | 0.0 |
| Quebec | 8.2 | 8.2 | 0.0 |
| Ontario | 7.0 | 6.8 | -0.2 |
| Manitoba | 5.7 | 5.6 | -0.1 |
| Saskatchewan | 5.2 | 5.2 | 0.0 |
| Alberta | 4.6 | 4.7 | 0.1 |
| British Columbia | 7.5 | 7.3 | -0.2 |
