In the most recent data release on payroll employment, earnings and hours in Canada for October 2023, the country witnessed a 4.0% increase in average weekly earnings, reaching $1,222.29. However, a closer look reveals a nuanced picture as the number of employees receiving pay and benefits, measured as “payroll employment,” decreased by 44,600 (-0.2%) in October, offsetting the previous month’s increase of 36,200 (+0.2%).
Payroll employment in manufacturing recorded a decline of 6,900 (-0.4%) in October, marking the fourth consecutive monthly decrease. This downturn, which began in July, aligns with a 2.8% decline in manufacturing sales, the third consecutive monthly drop. Transportation equipment manufacturing, chemical manufacturing, and fabricated metal product manufacturing were the hardest-hit sub-sectors, contributing to an overall loss of 16,700 jobs (-1.1%) since July.
The decline in manufacturing employment was notably concentrated in Ontario (-6,100; -0.9%) and Newfoundland and Labrador (-2,100; -17.1%), partially offset by gains in Quebec (+1,400; +0.3%).
Construction payroll employment saw a decrease of 6,700 (-0.6%) in October, following a slight gain in September and a more significant decrease in August. Notably, heavy and civil engineering construction, specialty trade contractors, and construction of buildings recorded declines, contributing to an overall decrease of 16,200 jobs since the peak in July.
The retail trade sector experienced a decline for the second consecutive month, with 6,200 fewer payroll employees (-0.3%) in October. The impact was distributed across sub-sectors, with notable declines in food and beverage retailers and sporting goods, hobby, musical instrument, book, and miscellaneous retailers. However, general merchandise retailers bucked the trend, recording a rise of 1,100 jobs (+0.4%).
Payroll employment in accommodation and food services declined by 5,600 (-0.4%) in October, driven primarily by a 0.7% decrease in full-service restaurants and limited-service eating places. This marks the fourth consecutive monthly decrease in this industry, totaling 12,600 jobs lost since July 2023.
Despite the overall downturn, the health care and social assistance sector saw a notable increase of 11,500 jobs (+0.5%) in October. This marks the third consecutive monthly gain, with general medical and surgical hospitals, child day-care services, and nursing care facilities driving the positive trend.
In contrast to several declining sectors, public administration payroll employment increased by 3,400 jobs (+0.3%) in October, marking the fourth consecutive month of growth. Provincial and territorial public administration and federal government public administration were the leading contributors to the sector’s cumulative gain of 27,200 jobs (+2.1%) since July.
As Canada navigates through these fluctuations in its employment landscape, stakeholders and policymakers will likely closely monitor these sectoral trends to assess the overall health and resilience of the country’s labor market.