../Morning Post
Posted September 10 , 2010

Employment increased by 36,000 in August 2010.

Statscan - At the same time, the unemployment rate edged up 0.1 percentage points to 8.1%, as more people entered the labour force.

Monthly gains in employment averaged 13,000 in July and August, compared with an average monthly increase of 51,000 during the first six months of the year.

Employment in educational services increased by 68,000 in August, rebounding from a decline of a similar magnitude the previous month. Similar offsetting movements in employment have occurred in this sector in recent summers (see Note to readers). With this gain in August, employment in this industry is back to levels observed during the first six months of the year. There were also increases in professional, scientific and technical services and in natural resources in August.

These gains, however, were dampened by losses in manufacturing; business, building and other support services; and information, culture and recreation.

The most notable employment gains in August were in Quebec, Saskatchewan and Newfoundland and Labrador, while employment was little changed in the other provinces.

In August, full-time employment rose by 80,000 while part-time declined by 44,000. However, since the start of the upward trend in employment in July 2009, growth in part-time employment (+4.1%) has outpaced that of full-time (+2.2%).

August's employment increase was among both men and women aged 25 and over.

The average hourly wage for employees rose by 2.3% in August compared with the same month a year earlier.

Gains driven by service sector in August

With increases of 68,000 in August, employment in educational services rebounded from a decline of a similar magnitude the previous month. Large monthly movements in educational services employment have been seen in recent summers (see Note to readers).

There were also gains in professional, scientific and technical services in August (+28,000). This industry recorded the highest growth rate of all major industry groups since July 2009, at 9.9% (+119,000).

Construction employment (+12,000) edged up in August, continuing the upward trend started in July 2009. Over this period, employment in this industry has grown by 9.6% or 109,000, the second highest growth rate of the major industry groups.

Natural resources posted employment gains of 9,000 in August, bringing total gains since July 2009 to 27,000 (+8.4%).

Manufacturing employment declined by 26,000 in August, offsetting the increase the previous month. Employment in this industry has been stable since July 2009.

In August, employment fell by 19,000 in business, building and other support services and by 18,000 in information, culture and recreation.

There were increases in the public sector (+58,000) and in self-employment (+18,000) in August, while there were declines among private sector employees (-40,000). Since July 2009, employment has grown by 4.3% in the public sector, 2.9% in the private sector, while self-employment edged down by 0.8%.

Notable gains in Quebec, Saskatchewan and Newfoundland and Labrador

Quebec posted employment gains of 19,000 in August. The unemployment rate remained unchanged at 8.2%, as more people entered the labour force. Since July 2009, employment growth of 3.0% (+115,000) in this province has been above the national average of 2.6%.

In Saskatchewan, employment rose by 5,400 in August, pushing the unemployment rate down 0.3 percentage points to 4.8%, the lowest in the country. Employment gains since July 2009 have totalled 13,000 (+2.4%).

In August, there were gains of 3,600 in Newfoundland and Labrador and the unemployment rate fell by 1.0 percentage point to 14.0%. This province has had the fastest rate of employment growth of all provinces since July 2009, at 5.0% (+11,000).

Employment in Ontario was little changed in August. The unemployment rate in this province was 8.8%, up 0.3 percentage points from the previous month, the result of an increase in the number of people in the labour force. Since July 2009, employment has increased by 2.7% (+178,000).

Employment up among adult workers in August

All of the employment gains in August were among workers aged 25 and over, up 20,000 for women and 18,000 for men. The unemployment rate was little changed for both groups, at 6.3% for women, and 7.4% for men.

There was little employment change among youths in August. The unemployment rate for 15 to 24 year-olds increased by 0.5 percentage points to 14.6%, as more youths looked for work.

Since July 2009, employment has increased at a much faster pace for workers aged 55 and over (+6.2%) than for youths (+1.9%) and workers aged 25 to 54 (+1.8%).

Summer labour market challenging for students

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

The 2010 summer labour market was challenging for students aged 15 to 24, with an average unemployment rate of 16.8% from May to August. Although an improvement from the summer of 2009, when the unemployment rate was 19.2%, it remains high compared with that of the summer of 2008, when the rate was 13.6%.

Older students fared better than their younger counterparts during the summer of 2010. The percentage of 20 to 24 year-olds employed averaged 66.5% in the summer of 2010, compared with 63.0% in the summer of 2009. In contrast, the percentage of 15 to 19 year-olds working declined slightly, from 42.8% to 42.5%.

The average number of hours worked during the summer of 2010 by students was 23.6 hours per week, among the lowest since data were first collected in 1977.

Note to readers

The Labour Force Survey (LFS) estimates are based on a sample, and are therefore subject to sampling variability. Estimates for smaller geographic areas or industries will have more variability. For an explanation of sampling variability of estimates, and how to use standard errors to assess this variability, consult the "Data quality" section of the publication Labour Force Information (71-001-X, free).

Seasonal adjustment and educational services

Unless otherwise stated, this release presents seasonally adjusted data, which facilitates comparisons by removing the effects of seasonal variations.

The LFS seasonal adjustment process removes the "average" seasonal pattern in the monthly data, according to trends seen in the previous seven years. While there have been large movements in educational services employment in July and August in recent years, there has not been a consistent pattern in the direction or magnitude of these changes over the seven-year period.

Submit press release to pressrelease@exchangemagazine.com - Editor Jon Rohr - Content published on this site represents the opinion of the individual/organization and/or source provider of the Content. ExchangeMagazine.com is non-partisan, online journal. Privacy Policy. Copyright of Exchange produced editorial is the copyright of Exchange Business Communications Inc. 2010/*.*. Additional editorials, comments and releases are copyright of respective source(s) and/or institutions or organizations.


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