Region’s June jobless rate steady at 6.9%
The National Capital Region’s unemployment rate in June remained steady compared to May, at 6.9 per cent, as the increase in jobs (2,300) was matched by the rise in the number of people seeking work, Statistics Canada reported Friday.
Nevertheless, the overall average disguised some profound shifts in key economic sectors.
Detailed data from June, which is not adjusted for seasonal influences, suggest the number of jobs increased by 6,700, to a record 721,600 for the economies of Ottawa and Gatineau.
Most of the net rise was accounted for by high-tech and health services. Statistics Canada estimated that high-tech employment rebounded to 44,500 in June — up 3,200 from May and the highest total in nearly 18 months. Employment in the health sector in June reached 102,200 — up 2,800 from May.
The region’s single biggest job sector remains public administration, which employed 143,000 workers in June. That was a net decline of 2,800 from May.
More revealing is the shift in the past year, during which hospitals and other health-services organizations expanded by 10,400 workers.
Other government-financed sectors are doing well. Over the past year, the number of jobs in education has jumped by nearly 10,000, to 62,900. Year over year, even the number of public administration jobs rose, albeit at a modest clip.
Combined, these three government intensive sectors had 22,200 net new jobs in Ottawa and Gatineau — a jump of nearly eight per cent since June 2015. The region’s other sectors saw a net drop of 15,500 jobs year-over-year, down 3.6 per cent.
Canada could be in for a long stretch of slow or even no-growth employment.
That pattern already appears to be solidifying in economically critical provinces like Ontario and Alberta.
For now and likely many months to come, British Columbia stands alone as the country’s consistent source of job creation.
So it’s not surprising to see last month’s data showing a flat labour picture overall, one with few employment opportunities and fewer people even bothering to look for work.
June’s jobs report showed little movement: a net loss of 700 positions, accompanied by a slight decline — 6.8 per cent from 6.9 per cent — in the unemployment rate, Statistics Canada reported Friday.
In May, about 14,000 jobs were added to the economy — a bigger number, but not a statistically significant move.
“It is typically considered a good thing when a country ’s unemployment rate falls, but that is not the case for Canada in June,” Brian DePratto of TD Economics said in a research note.
“Beneath the effectively zero change in hiring lies weaker details.”
There was a decline of 40,100 full-time positions in June, Statistics Canada said, but that was offset slightly by a gain of 39,400 part-time workers.
At the same time, the public sector shed 27,000 jobs in June and private positions fell by 10,500. As well, 37,700 more people said they were now self-employed compared to the previous month.
Economists had forecast a gain in overall employment of at least 5,000 last month, but with the jobless rate rising to seven per cent.
“In terms of growth, I think it’s all about B.C. at this point. And, of course, that’s really been arguably the main regional story over the last year,” said Douglas Porter, chief economist at BMO Capital Markets.
“Looking ahead to the second half of the year, it’s pretty tough to see the job market making much significant headway — given the clouds that are surrounding the global outlook, whether it’s Brexit or Italian banks or the upcoming U.S. federal election.”
Also continuing to suffer from weak employment was Ontario, which shed 4,200 positions. Meanwhile, British Columbia’s labour market added 16,000 jobs in June.