In January 2024, Canada witnessed a slew of developments in its labor market, as indicated by the latest data from the Survey of Employment, Payrolls, and Hours. The report sheds light on various sectors’ performances, changes in payroll employment, average weekly earnings, and job vacancies across different provinces.
The report unveils a nuanced picture of payroll employment across different sectors. In January, there was an uptick in the number of employees receiving pay and benefits from their employers, with a notable increase of 39,800 (+0.2%). On a year-over-year basis, this figure climbed by 212,900 (+1.2%), indicating steady growth in employment opportunities.
Breaking down the sectoral performance, 13 out of 20 sectors experienced monthly increases in payroll employment. Retail trade, manufacturing, finance and insurance, information and cultural industries, and transportation and warehousing led the surge, underpinning the diversified nature of the job market’s expansion. However, the construction sector witnessed a decline of 3,500 (-0.3%) jobs, reflecting a nuanced landscape with pockets of contraction amid overall growth.
Retail Trade: After facing four consecutive monthly declines, payroll employment in retail trade rebounded with a gain of 9,600 jobs (+0.5%). This resurgence, especially in subsectors like sporting goods, hobby, musical instrument, and general merchandise retailers, suggests a potential recovery in consumer spending and retail activity.
Manufacturing: The manufacturing sector saw a modest increase of 7,300 jobs (+0.5%) in January, with notable gains in food manufacturing, transportation equipment manufacturing, and plastics and rubber products manufacturing. Despite recent fluctuations, the sector maintains its pivotal role in driving economic growth and job creation.
Finance and Insurance: Payroll employment in finance and insurance surged by 6,900 jobs (+0.8%) in January, propelled by substantial gains in securities and commodity contracts intermediation and brokerage. This uptick underscores the resilience and adaptability of financial services amid evolving market dynamics.
Transportation and Warehousing: Following a brief downturn in December, the transportation and warehousing sector bounced back with an increase of 5,200 jobs (+0.6%) in January. Noteworthy gains in general freight trucking and urban transit systems highlight the sector’s integral role in facilitating logistics and supply chain operations.
Construction: Despite overall growth in employment, the construction sector experienced a marginal decline of 3,500 jobs (-0.3%) in January. This dip, particularly in residential building construction, underscores challenges facing the housing market and construction activities.
Average weekly earnings in Canada saw a month-over-month increase of 0.7% to $1,228 in January, following a slight decline in December 2023. On a year-over-year basis, average weekly earnings registered a robust growth of 3.9%, reflecting positive trends in wages and income levels.
Average weekly hours worked remained relatively stable on a monthly basis but exhibited a modest uptick of 0.9% year-over-year, reaching 33.5 hours. This stability indicates a balanced labor market environment conducive to maintaining work-life balance and productivity.
The report also provides insights into job vacancies across different sectors and provinces. While total job vacancies remained largely unchanged from December, there were notable fluctuations in specific sectors. Retail trade witnessed a significant increase in job vacancies, offsetting declines in sectors like manufacturing and wholesale trade.
Regionally, Quebec experienced a substantial increase in job vacancies, while provinces like Alberta, Saskatchewan, and Nova Scotia saw declines. British Columbia continued to lead in terms of job vacancy rate, underscoring its robust labor demand compared to other provinces.
While overall payroll employment and earnings exhibit positive trends, there are nuances in sectoral performances and regional disparities that warrant attention. As Canada navigates through evolving economic conditions, policymakers and stakeholders can leverage these insights to formulate targeted strategies aimed at fostering inclusive growth and addressing emerging challenges in the labor market.