Canadian employment in August exceeded expectations with a greater increase, while the unemployment rate remained steady.

Highlights

• The growth of employment by 40,000 is overshadowed by a significant increase in the population.
• Individuals in the core working-age group witness significant growth in employment.
• The unemployment rate remains steady at 5.5% in the month of August.

Employment Increase

In August, Canadian employment saw a rise of 40,000 jobs, reflecting a 0.2% increase. However, this growth was overshadowed by a population surge of 103,000, leading to a decline in the employment rate by 0.1 percentage points to settle at 61.9%. It is notable that the decline in the employment rate indicates that job growth has not kept pace with population expansion.

Demographic Shifts in Employment

The employment trends varied among different age groups. Core-aged individuals (aged 25-54) experienced notable job gains, with men witnessing an increase of 33,000 jobs and women seeing a rise of 21,000 jobs. Conversely, employment declined for women aged 55 and above by 27,000 jobs. The situation for youth employment was mixed, as female youth employment surged by 32,000 jobs while male youth faced a decline of 29,000 jobs.

Industry Landscape

August demonstrated positive employment growth in sectors such as professional, scientific, and technical services (+52,000) and construction (+34,000). However, the educational services and manufacturing sectors saw declines, losing 44,000 and 30,000 jobs respectively. Regionally, Alberta, British Columbia, and Prince Edward Island observed employment growth, while Nova Scotia experienced a decline.

Unemployment Stability with Varied Patterns

The unemployment rate remained static at 5.5% in August, similar to the previous month. However, there were variations among different demographic groups. Core-aged women experienced a decrease in unemployment by 0.4 percentage points, whereas male youth saw an increase by 2.5 percentage points. Comparatively, over the past year, the unemployment rate for male and female youth rose by 1.6 and 1.9 percentage points respectively.

Forecast

Monitoring Economic Indicators: The steady unemployment rate and the overshadowing effect of population growth on employment gains require close monitoring. The current dynamics indicate potential challenges in achieving a balance between population growth and job creation. While there are positive trends in certain sectors and demographics, attention is needed to ensure a well-balanced economy. Short-term sentiment remains cautiously optimistic due to the diverse employment patterns across demographics and sectors.