(Revised)

Released at 8:30 a.m. Eastern time in The Daily, Friday, August 15, 2014

In July, employment increased by 42,000 as a result of an increase in part-time work (+60,000). Unemployment rate declined by 0.1 percentage points to 7.0%.

In the 12 months to July, employment rose by 157,000 or 0.9%. Most of the growth was reported in part-time work. The total hours worked went up slightly (+0.3%) compared with July 2013.

Among age groups 15-24 and 25-54, employment increased in July, whereas it fell for people aged 55 and over.

Among provinces, Ontario, Labrador and Newfoundland saw an increase in employment, while Nova Scotia and Brunswick witnessed a decline.

In July, more people were employed in educational services and in information, culture and recreation. However, employment declined in construction, health care and social assistance.

Employment in the private sector increased in July. There was a decline in the number of self-employed.

The unemployment rate in Canada was 6.1% in July, after being adjusted to the concepts used in the US. In the US, the unemployment rate for July was 6.2%.

Gains among age groups 15-24 and 25-54

Among people aged 25-54, employment increased by 38,000 in July. Their unemployment rate declined by 0.1 percentage points to 6.0%. Employment for this age group has changed little when compared to 12 months earlier.

Among youth aged 15-24, employment increased by 34,000 in July. However, their unemployment changed little and stood at 13.1% as more youths participated in the labour market. Despite the increase in employment in July, the overall employment levels were little changed from 12 months before.

Among people aged 55 and above, employment fell by 30,000, partly offsetting the increase in June. Compared with 12 months before, employment increased by 151,000 (+4.5%). These gains were mainly due to a 3.2% growth in the population of this age group.

Provincial summary

In Ontario, employment increased by 40,000 in July, offsetting the decline witnessed in the previous month. As more people participated in the labour market, the unemployment rate remained stable at 7.5%. Employment in Ontario was up by 60,000 (+0.9%) compared with July 2013.

After witnessing three consecutive months of decline, Newfoundland and Labrador saw an employment increase of 4,700 in July.

The unemployment rate did not see much change and stood at 12.4% as more people participated in the labour market. Despite the July increase, employment in the province came down by 5,000 (-2.2%) compared with 12 months before.

In Nova Scotia, employment reduced by 3,900. Thus unemployment rate rose up 0.7 percentage points to 9.4%.

Employment in the province was down 10,000 (-2.2%), on a year-over-year basis.

In New Brunswick, employment declined by 3,400 in July. The unemployment rate was little changed from a month back and stood at 10.0%, as fewer people participated in the labour market. Employment in the province was virtually unchanged, compared with a year earlier.

In Saskatchewan, there was little change in employment in July. But there was a decline in the number of people searching for work which brought down the unemployment rate by 0.7 percentage points to 3.2%, the lowest rate seen by the province since 1976 when comparable data became available. Employment in Saskatchewan was up 8,200 (+1.5%) compared with a year earlier.

Industry perspective

In July, employment in educational services increased by 46,000. The increase was mainly in primary and secondary schools in Ontario.

There were 17,000 more people employed in information, culture and recreation in July. Employment in this industry has increased by 55,000 (+7.3%), compared with a recent low in July 2013.

The number of people employed in construction declined by 39,000 in July, offsetting an increase in the previous month. Compared with 12 months earlier, employment in this industry was down by 46,000 (-3.4%), the result of declines in the fall of 2013.

There was a decline of 26,000 in employment in the health care and social assistance services in July. Most of it was in the social assistance sector in Quebec. Employment in this industry was up by 90,000 (+4.2%), compared with a recent low in July 2013.

Employment in the private sector increased by 55,000 in July. Whereas the number of employees in public sector went up only slightly and the number of self-employed people declined by 37,000. Compared with 12 months earlier, the number of employees increased both in the private sector (+1.2% or +141,000) and the public sector (+1.9% or +69,000).

Over this 12-month period, self-employment was down 2.0% (-54,000).

Summer employment for students

From May to August, the Labour Force Survey collects labour market data about young people aged 15 to 24 who were attending school full time in March and who intend to return to school full time in the fall. The published data are not seasonally adjusted; therefore, comparisons can only be made on a year-over-year basis.

As a result of an increase in part-time work, employment among age group 2-24 increased by 32,000 compared with July 2013. The unemployment rate for this group changed little at 71.1%, since employment and the number of returning students was increasing at a similar pace. The unemployment rate for this group was 8.1%, little changed compared with a year earlier.

For students aged 17-19, the employment rate was 58.8% in July, little changed from 12 months earlier. Their unemployment rate was also little changed at 17.0%.

Employment was 29.1% among students aged 15-16, virtually unchanged compared with July 2013. Their unemployment rate was also little changed at 28.6%.

Canada-United States comparison

In July, Canada had an unemployment rate of 6.1% compared with 6.2% in the US, after adjusting to US concepts. In the 12 months to July, the rate of unemployment in Canada fell by 0.2 percentage points, while it went down 1.1 percentage points in the US.

The employment rate in Canada in July (after adjusting to US concepts) was 62.1%, compared with 59.0% in the US.

Attorney Colin Singer Commentary:

Recent developments seem to follow the improving US labour market.  Canadian employers across Canada are expressing increasing concerns about labour shortages.  This is especially the case in Alberta, Saskatchewan and British Columbia.  It favours those interested in applying for entry to Canada under a work permit or Canadian permanent residence (Alberta immigration, Saskatchewan immigration and British Columbia immigration programs).

Source: Statistics Canada