In May 2024, Canada’s labour market showed mixed signals, with modest employment gains but a slight uptick in the unemployment rate, according to Statistics Canada.
In May, employment in Canada saw a marginal increase of 27,000 jobs, translating to a 0.1% rise. Despite this, the employment rate dipped by 0.1 percentage points to 61.3%, continuing a downward trend observed over the past eight months. The unemployment rate edged up to 6.2%, a 0.1 percentage point increase from April and a notable 0.9 percentage points higher than a year ago. This suggests that employment growth has not kept pace with population growth, leading to higher unemployment.
The survey revealed divergent employment trends among different age and gender groups. Young women aged 15 to 24 experienced a significant employment increase of 48,000 jobs (+3.7%), while women aged 55 and older saw an increase of 21,000 jobs (+1.1%). Conversely, core-aged women (25 to 54) and young men (15 to 24) faced employment declines, losing 40,000 (-0.6%) and 23,000 (-1.6%) jobs, respectively. These shifts underscore varying labour market dynamics and challenges across demographic segments.
Employment gains were observed in several sectors, including health care and social assistance (+30,000; +1.1%), finance, insurance, real estate, rental and leasing (+29,000; +2.0%), and accommodation and food services (+13,000; +1.1%). However, significant job losses occurred in construction (-30,000; -1.9%), transportation and warehousing (-21,000; -1.9%), and utilities (-5,400; -3.5%). These changes reflect the ongoing adjustments within Canada’s economic landscape as different sectors respond to evolving market conditions.
Employment trends varied across provinces. Ontario led the gains with an increase of 50,000 jobs (+0.6%), followed by Manitoba (+7,800; +1.1%) and Saskatchewan (+5,400; +0.9%). In contrast, Alberta experienced a significant decline, losing 20,000 jobs (-0.8%). Employment also decreased in Newfoundland and Labrador (-2,100; -0.9%) and Prince Edward Island (-1,100; -1.2%). These regional disparities highlight the localized impacts of broader economic trends.
May saw a rise in part-time employment by 62,000 jobs (+1.7%), while full-time employment decreased slightly by 36,000 jobs (-0.2%). On an annual basis, part-time employment grew by 3.8% (+140,000), outpacing the growth of full-time employment, which rose by 1.6% (+263,000). The increase in part-time employment, particularly involuntary part-time work, may indicate underlying economic challenges and a potential rise in underemployment.
The employment rate for returning students aged 20 to 24 was 61.0% in May, down 2.9 percentage points from the previous year. Male returning students saw a sharp decline in their employment rate, which fell 6.6 percentage points to 57.3%. The youth employment rate remained virtually unchanged at 55.6% but was on a downward trend compared to pre-pandemic levels, indicating ongoing difficulties for young Canadians in securing stable employment.
Average hourly wages increased by 5.1% year-over-year, reaching $34.94. This follows a 4.7% increase in April, reflecting rising wage pressures in the labour market. The proportion of workers working exclusively from home continued to decline, reaching 13.2% in May 2024, down from 18.7% in May 2022. The hybrid work arrangement remained relatively stable, suggesting a gradual shift back to traditional work environments post-pandemic.
The employment rate among core-aged Inuit in Nunavut fell to 51.8% in 2023, down 5.7 percentage points from the previous year. Employment rates for First Nations and Métis also showed declines, particularly among youth and older demographics, highlighting persistent employment challenges within Indigenous communities.