The latest data from Statistics Canada reveals notable trends in payroll employment, earnings, and job vacancies for May 2024. Average weekly earnings across the country saw a significant year-over-year increase, while job vacancies remained relatively unchanged, highlighting a dynamic but stable labour market landscape.
In May 2024, payroll employment in Canada experienced a modest increase of 41,000 jobs, representing a 0.2% rise from the previous month. This marks the fifth consecutive month of gains, culminating in a total increase of 148,900 jobs since January. The growth in payroll employment was particularly prominent in nine out of 20 sectors.
The health care and social assistance sector led the charge with an addition of 13,800 jobs, reflecting a 0.6% increase. This sector has been on an upward trajectory since September 2022, accumulating a substantial gain of 165,800 jobs, equivalent to a 7.5% rise. Within this sector, general medical and surgical hospitals saw the largest monthly increase, followed by community care facilities and nursing care facilities.
Educational services also posted a notable increase of 8,800 jobs, or 0.6%, continuing a trend that began in February. The retail trade sector added 4,500 jobs, a 0.2% increase, with gains primarily in food and beverage retailers and motor vehicle and parts dealers. Transportation and warehousing employment rose by 4,000 jobs, driven by growth in couriers and messengers, and transit and ground passenger transportation.
Conversely, the public administration sector saw a decline, shedding 4,000 jobs, or 0.3%, in May. Similarly, administrative and support services, waste management, remediation services, and utilities experienced reductions in payroll employment.
Average weekly earnings in Canada reached $1,251.77 in May, marking a 4.2% year-over-year increase. Month-over-month, earnings rose by 0.8%, building on the stable figures from April. The increase in average weekly earnings can be attributed to a combination of higher wages, changes in the composition of employment, hours worked, and base-year effects. Average weekly hours worked remained steady from April but showed a 0.6% year-over-year increase to 33.5 hours.
Job vacancies in May remained relatively unchanged at 559,700, following a decline of 99,700 vacancies from January to April. Compared to May 2023, vacancies were down significantly by 217,100, representing a 28% decrease. The job vacancy rate dropped to 3.1%, just below the pre-pandemic average. This translates to 2.5 unemployed persons for every job vacancy, a slight increase from the previous month.
Three sectors saw notable decreases in job vacancies in May: administrative and support services, arts, entertainment and recreation, and information and cultural industries. On the other hand, the finance and insurance sector recorded a significant increase in vacancies, while the health care and social assistance sector held steady.
Across provinces, job vacancy rates held steady in May, except for New Brunswick, which saw a 21% decrease in vacancies. Saskatchewan reported the highest job vacancy rate at 4.0%, followed closely by British Columbia at 3.8%. Prince Edward Island and Newfoundland and Labrador had the lowest vacancy rates at 1.9% and 2.3%, respectively. Year-over-year, job vacancy rates declined across all provinces, with the most significant drops observed in Prince Edward Island, Quebec, and Newfoundland and Labrador.
Over the past two years, job vacancy rates have decreased across the largest sectors, with the most substantial decline in accommodation and food services. Despite this, the job vacancy rate in health care and social assistance remains above pre-pandemic levels, indicating ongoing demand in this critical sector.
The labour market in May 2024 demonstrates a complex interplay of growth in payroll employment and average weekly earnings, against a backdrop of stable job vacancies. The health care and social assistance sector continues to show robust growth, reflecting broader trends in the labour market. As job vacancy rates normalize, the data suggests a stabilizing economy, with targeted sectoral and provincial differences highlighting areas of strength and ongoing challenges. However, there are still many individuals continuing to struggle to find jobs that match their educational backgrounds and and provide sufficient income to support their lives.