Ontario sheds 36,000 jobs in July
Statistics Canada finds that unemployment rate increased to 6.9 per cent, up 0.1 percentage point
Ontario lost 36,000 jobs last month in the first decline since September 2015, Statistics Canada said Friday in a jobs report that highlighted Canada’s weak labour market.
In a report full of contrasts, the July Labour Force Survey found the Canadian economy shed a worsethan-expected 31,000 jobs from June to July. The unemployment rate ticked up 0.1 percentage point to 6.9 per cent. It was the fourth straight month of contraction in the jobs market.
There were few bright spots in the report that saw a decline in the number of jobs for youth, for full-time workers, for public sector workers and for Ontario, Newfoundland and Labrador and other provinces.
Some of the job losses however were partially offset by gains in employment among workers aged 55 and up and among private sector workers, as well as an increase in private sector jobs and in provinces such as New Brunswick and British Columbia.
Here’s a look at some of the dichotomies at play: Canada vs. U.S. Canada’s negative jobs report comes after three months of little change. It is a sunnier picture south of the border, where the economy added a better than expected 255,000 jobs.
The unemployment rate fell to 4.9 per cent, a full two percentage points below Canada’s.
The U.S. gains were broad-based and included significant increases in manufacturing, health care and retail.
It also saw wages climb more than anticipated, good news that could increase consumer spending in that country.
That could also prove to be positive for Canada’s economy in the second half of the year.
“Mitigating the sombre start to the quarter was a healthy employment gain south of the border,” said TD economist Leslie Preston.
“With exports expected to help lift Canada’s growth in the coming quarters it is good news that the U.S. is proving resilient to global headwinds.” Younger vs. older workers Young workers fared worst in July, typically a month when students are working summer jobs.
The report pointed to a reduction of 28,000 jobs for those aged 15 to 24 in July — all of which were part-time jobs. The youth unemployment rate stands at 13.3 per cent, nearly twice the national average. On an annual basis, there are 66,000 fewer jobs for that demographic than there were last July, a decrease of 2.7 per cent. Employment among older stu- dents aged 20 to 24 and younger students aged 15 and 16 was unchanged from a year ago, but declined among students aged 17 to 19.
Meanwhile, older workers aged 55 and up saw employment gains, largely due to a swell in that population as the boomers age. Employment among that demographic has risen by 105,000 jobs or by 6.6 per cent over the past year. Full time vs. part time The decline in full-time jobs is an ongoing trend, suggesting the country faces a widespread problem of underemployment.
About 71,000 full-time jobs were lost in July, which was only partially offset by a 40,000 uptick in part-time labour.
The trend toward more part-time jobs points to more volatile work without benefits or guaranteed hours and lower incomes.
Fewer women were working full time in July, with a 39,000 drop in full-time jobs in July, largely offset by a 38,000 gain in part-time employment.
The economy has added 71,000 jobs since last July, an increase of 0.4 per cent — but all of that growth has been entirely due to part-time hiring. Ontario vs. B.C. Ontario’s loss was the most notable decline in almost a year. Still, the province’s unemployment rate was unchanged at 6.4 per cent as fewer people were looking for work.
B.C. added 12,000 positions in July, continuing a streak that has lasted since spring 2015. The province’s unemployment rate, at 5.6 per cent, is the lowest rate in the country.
British Columbia has also logged the fastest rate of growth in jobs among all provinces over the past year. The province’s healthy job market could help to explain its booming housing market.
Meanwhile, in neighbouring Alberta, which has been pummelled by the oil price crash since June 2014, the number of jobs was essentially unchanged. However as more people searched for work, the unemployment rate rose 0.7 percentage points to 8.6 per cent, the province’s highest since 1994. Alberta has lost 49,000 jobs in the past year, sending the unemployment rate up 2.4 percentage points. Public vs. private sector Public-sector jobs fell by 42,000 in July, but there was little change among those working in the private sector and self-employed workers.
Year-over-year, the public sector has lost some 40,000 jobs while the private sector has added 103,000 and self-employment was little changed.
Economists at CIBC, however, are skeptical about the true impact of that drop in public sector jobs.
“Although some provinces are undergoing belt tightening, we find it unlikely that the public sector has indeed shed 1.1 per cent of its workforce over the past year, and 1.2 per cent in any single month,” they wrote in a report.
“Federal fiscal stimulus, and the regular see-saw in the LFS’s data, would suggest that this particular category is headed for a rebound ahead.”