The latest Labour Force Survey (LFS) released on January 5, 2024, unveils a job market that saw virtually no change in employment in December 2023, with a 0.0% increase. Despite the stability, the unemployment rate remained at 5.8%, shedding light on broader trends within the Canadian labor force.
The employment rate witnessed a 0.2 percentage point decrease to 61.6%, as the population aged 15 and older grew by 74,000. Employment dynamics varied across age groups. Core-aged men (25-54) experienced a 0.4% increase, while employment declined among men aged 55 and older (-1.1%). Notably, young women aged 15 to 24 saw a positive shift (+1.0%), but young men experienced a stagnation.
Professionals in technical services saw a significant increase (+2.4%), along with growth in health care and social assistance (+0.6%) and “other services” (+1.5%). However, wholesale and retail trade (-0.7%) and manufacturing (-1.0%) recorded declines.
While employment rose in British Columbia (+0.6%), it declined in Ontario (-0.6%). Total hours worked increased by 0.4% in December, showing a positive trend on a year-over-year basis, along with a 1.7% rise.
Average hourly wages rose by 5.4% year-over-year to $34.45 in December, indicating positive momentum in compensation.
The unemployment rate remained steady at 5.8%, but it increased for the majority of the demographic groups, especially for the youth aged 15 to 24 (+1.7 percentage points to 11.3%).
The participation rate fell by 0.2 percentage points to 65.4%, mainly driven by a 2.1 percentage point drop in the youth participation rate.
Employment increased in British Columbia, Nova Scotia, Saskatchewan, and Newfoundland and Labrador but declined in Ontario. Quebec recorded little change in employment but experienced a drop in the unemployment rate.
Widespread strikes in Quebec’s public sector, particularly in educational services, affected over 162,000 employees, with more than one-third losing work hours.
The report highlighted a rise in unemployment rates for racialized groups, with core-aged Black Canadians experiencing a 1.6 percentage point increase to 8.5% from December 2022 to December 2023.
The gig economy saw a substantial uptick, with 135,000 Canadians providing ride or taxi services through apps, marking a 48.1% increase from 2022. Additionally, 272,000 individuals provided delivery services through app-based platforms, rising by 19.2%.
Landed immigrants constituted a significant portion (57.5%) of those providing app-based services, and racialized groups accounted for 70.5%, with South Asian and Black Canadians being the largest contributors.
The December 2023 Labour Force Survey underscores a complex and evolving employment landscape in Canada, marked by demographic shifts, regional variations, and the growing prominence of the gig economy. As the country navigates these challenges, policymakers and businesses are called upon to adapt strategies that address the diverse needs of the workforce.