Canada jobs rebound with 230,700 added, but all in part-time work

The number of jobs in Canada rose by 230,700 month over month in June to almost 18.8 million, following a cumulative decline of about 275,000 over the previous two months, Statistics Canada reported today citing seasonally adjusted data. Jobs are up by 1.4 million compared to June 2020.

However, employment growth in June was entirely in part-time work and concentrated among youth aged 15 to 24, primarily young women. Part-time work rose by 264,000 following combined losses of 132,000 over the previous two months, and the overall level of part-time employment was essentially the same as in February 2020, prior to the Covid-19 pandemic.

Total hours worked were little changed and were 4.0% below their pre-pandemic level.

On a year-over-year basis, full-time employment rose by 860,000 jobs in June and part-time employment rose by 544,200.

The unemployment rate fell to 7.8% from 8.2% in May.

Overall, the number of people working in services-producing industries grew by 279,000, the largest increase since March. In contrast, the number of people working in goods-producing industries fell by 48,000 in June, the second consecutive monthly decline.

Industries adding the most jobs in June included accommodation and food services, up 101,000; retail trade, up 75,000; and “other” services, up 24,000.

Employment also rose in educational services; health care and social assistance; professional, scientific and technical services; as well as business, building and other support services.

June’s jobs gain beat analyst expectations of 195,000, as public health restrictions were eased in several regions, Reuters reported. The unemployment rate was just over expectations of 7.7%. “But with virus containment measures continuing to ease, more sizeable labor market improvements are expected in months to come,” said Nathan Janzen, senior economist at RBC Economics, in a note.

Looking at just Ontario, the province added 116,900 jobs in June following two months of losses as strict public health measures began to ease. Its unemployment rate fell to 8.4% from 9.3% in May.

The original article can be found at: Staffing Industry Analysts