The Canadian labour market in August remained relatively steady, with employment seeing a marginal increase of 22,000 jobs, translating to a modest 0.1% rise. However, the overall employment rate dipped slightly by 0.1 percentage points, settling at 60.8%. At the same time, the unemployment rate crept up to 6.6%, marking a notable 0.2 percentage point increase from July and the highest level since May 2017, excluding the pandemic years.
This slight growth in employment was primarily driven by part-time positions, which saw a boost of 66,000 jobs (+1.8%), while full-time employment contracted by 44,000 (-0.3%). Despite the gains, August marked the fourth consecutive month of little change in overall employment, as the labour force faces continued challenges amid evolving economic conditions.
Employment Changes by Sector August 2024
| Sector | Employment Change | Percentage Change |
|---|---|---|
| Educational Services | +27,000 | +1.7% |
| Health Care and Social Assistance | +25,000 | +0.9% |
| Finance, Insurance, Real Estate, Rental and Leasing | +11,000 | +0.8% |
| Other Services | -19,000 | -2.3% |
| Professional, Scientific, and Technical Services | -16,000 | -0.8% |
| Utilities | -6,800 | -4.5% |
| Natural Resources | -6,500 | -1.8% |
The unemployment rate’s rise to 6.6% comes as no surprise, continuing an upward trend that began in April 2023. Since then, the unemployment rate has climbed by 1.5 percentage points, reflecting ongoing struggles in various sectors and demographic groups. In total, 1.5 million Canadians were unemployed in August, an increase of 60,000 from July and a staggering 22.9% rise compared to the same time last year.
For many, finding work has become increasingly difficult. Only 16.7% of those unemployed in July managed to secure employment in August, a significant drop from 23.2% in the same period in 2023, suggesting that the labour market may be becoming more competitive or that opportunities are harder to come by.
The youth unemployment rate, in particular, continues to present a concern. The unemployment rate for youth aged 15 to 24 jumped 3.2 percentage points to 14.5%, with young men seeing a larger increase (+3.8 percentage points to 16.3%) compared to young women (+2.6 percentage points to 12.6%).
Unemployment Rates by Age Group
| Age Group | Unemployment Rate (August 2024) | Change from August 2023 |
|---|---|---|
| Youth (15-24 years) | 14.5% | +3.2 percentage points |
| Young Men | 16.3% | +3.8 percentage points |
| Young Women | 12.6% | +2.6 percentage points |
| Core-aged (25-54 years) | 5.4% | +0.9 percentage points |
| Men (25-54 years) | 5.7% | +0.9 percentage points |
| Women (25-54 years) | 5.1% | +0.9 percentage points |
Some sectors saw promising job growth in August, particularly in educational services, which added 27,000 jobs (+1.7%). This marked the first increase in the sector since January, bringing the total year-over-year growth to 5.1%, or 75,000 additional jobs. The rise in educational employment may be linked to preparations for the new academic year and a broader expansion of educational programs.
Similarly, the healthcare and social assistance sector recorded a notable increase of 25,000 jobs (+0.9%), continuing its upward trajectory. Over the past year, healthcare and social assistance have seen the largest employment growth of any sector, adding 157,000 jobs, which accounts for nearly half of the country’s overall employment gains. With a rapidly aging population and increasing demands for healthcare services, the sector’s expansion is expected to remain strong.
Conversely, other services (which includes personal and repair services) experienced a sharp decline in August, shedding 19,000 jobs (-2.3%). The professional, scientific, and technical services sector also saw a contraction, with 16,000 fewer jobs (-0.8%). However, despite the monthly drop, the sector remains up by 47,000 jobs (+2.5%) over the past year.
Provincial employment trends were mixed in August, with Alberta leading the way with an increase of 13,000 jobs (+0.5%). This follows a period of stagnation in the province, where employment had previously held steady in June and July. However, Alberta’s unemployment rate rose by 0.6 percentage points to 7.7%, suggesting that more residents are actively seeking work amid a sluggish economic recovery.
Employment Changes by Province
| Province | Employment Change | Percentage Change | Unemployment Rate |
|---|---|---|---|
| Alberta | +13,000 | +0.5% | 7.7% |
| Nova Scotia | +5,000 | +1.0% | 6.7% |
| Manitoba | +4,400 | +0.6% | 5.8% |
| Prince Edward Island | +900 | +1.0% | 8.2% |
| Newfoundland and Labrador | -2,400 | -1.0% | 10.4% |
Nova Scotia and Prince Edward Island both recorded a 1.0% increase in employment, adding 5,000 and 900 jobs, respectively. Similarly, Manitoba saw a rise of 4,400 jobs (+0.6%), though the unemployment rate remained relatively stable at 5.8%. Newfoundland and Labrador was the only province to experience a decline in employment, losing 2,400 jobs (-1.0%) and pushing its unemployment rate to 10.4%, an increase of 0.8 percentage points.
In Ontario, employment remained mostly unchanged after an increase in July. However, the province’s unemployment rate rose by 0.4 percentage points to 7.1%, as more people entered the job market in search of work. Quebec also saw minimal change in employment, with its unemployment rate holding at 5.7%, though the number of job seekers has grown significantly over the past year.
The Labour Force Survey also shed light on the difficulties faced by students seeking summer employment. From May to August 2024, the unemployment rate for returning students (those aged 15 to 24 who intended to return to school in the fall) averaged 16.7%, the highest rate since 2012, excluding the pandemic summer of 2020.
For young men, the rate surged to 18.1%, while young women saw an increase to 15.5%. The racialized youth population faced even greater challenges. Among Black students, the unemployment rate jumped by 10.1 percentage points to 29.5%. Chinese and South Asian students also experienced sharp increases, with their unemployment rates reaching 22.4% and 21.5%, respectively.
This troubling trend highlights the difficulties young people, particularly those from racialized communities, face in accessing summer employment opportunities. The sharp increases in student unemployment signal broader issues within the youth labour market, where job competition has intensified, and employers may be hesitant to hire inexperienced workers during economic uncertainty.
On a positive note, the average hourly wage for employees rose by 5.0% on a year-over-year basis in August, climbing by $1.69 to $35.16. This followed a 5.2% wage growth in July. However, total hours worked remained largely unchanged from the previous month, showing a slight 0.1% decline but still reflecting a 1.4% increase compared to a year earlier.
As the Canadian labour market enters the fall, economists remain cautious about the outlook. While certain sectors, like healthcare and education, continue to show strength, others are grappling with declines. The unemployment rate’s steady climb over recent months, coupled with ongoing challenges for youth and part-time workers, paints a complex picture of a labour force in transition.