Employment Surge and Rising Unemployment Rate in Canada
In November, Canada's labor market experienced a surge with an increase of 51,000 jobs, indicating a 0.2% rise compared to the previous month. This growth was primarily seen in full-time positions, which recorded an increase of 54,000 jobs or a growth of 0.3%. However, as more individuals entered the labor market in search of work, the unemployment rate rose by 0.3 percentage points to 6.8%.
The employment rate remained stable at 60.6%, indicating that job growth progressed at the same rate as population growth. However, on an annual basis, the employment rate showed a decline of 1.2 percentage points.
A significant portion of the employment increase occurred in the public sector, contributing 45,000 new jobs to the overall rise. In contrast, the number of employees in the private sector and self-employed individuals showed very little change during the same period.
The most benefited group from the job growth was men aged 25-54, who gained 45,000 new positions. Conversely, women aged 55-64 experienced a decline in employment, with a loss of 20,000 jobs. The employment rate for men in this prime age group rose to 86.5%, partially recovering from previous declines. Meanwhile, the rate for women aged 55-64 fell to 58.6%.
Industrially, significant job increases were observed in wholesale and retail trade, construction, professional, scientific and technical services, educational services, as well as accommodation and food services. On the other hand, employment declines were noted in the manufacturing, transportation and warehousing, and natural resources sectors.
Regionally, Alberta, Quebec, Manitoba, and Prince Edward Island recorded employment growth. Alberta and Quebec made the most substantial contributions to the national increase. Ontario's employment remained relatively stable, but the provincial unemployment rate rose to 7.6%, reaching its highest level since May 2014, excluding the pandemic years of 2020 and 2021.
The youth unemployment rate also rose to 13.9%, with increases observed for both young men and women. Women in the prime age group experienced a third consecutive monthly rise in unemployment rates, reaching 5.8%.
The average hourly wage for employees increased to $35.68, reflecting a year-on-year rise of 4.1%.
In terms of education, 29.2% of Canadians aged 25-54 completed education outside the formal education system last year, showing a slight decline compared to the previous year. Job-specific training emerged as the most common type, emphasizing employers' roles in facilitating employee development.
Hybrid working arrangements remained steady, with 11.5% of employed Canadians spending some of their hours working from home and the remainder at other locations. Among these hybrid workers, a larger share compared to the previous year spent at least half of their working hours in the field.