Hi, Guest
06-10-2006, 06:11 AM
Unemployment at lowest level since 1974
Updated Fri. Jun. 9 2006 10:30 AM ET
CTV.ca News Staff
The Canadian economy gained an estimated 97,000 jobs in May, driving the unemployment rate down to 6.1 per cent, the lowest level since December 1974.
That was down from 6.4 per cent in April.
The job gains pushed the overall employment rate to an all-time high of 63.2 per cent and the monthly increase matched a record high reached in January 2002.
The Canadian dollar climbed more than one cent US Friday as the jobless report dramatically exceeded expectations.
The dollar surged on the expectation that positive employment news could bolster tighter interest rates in the coming months, BMO Nesbitt Burns economist Douglas Porter said.
"One single economic report is unlikely to alter the Bank of Canada's stance, but this one could come close," Porter said in a research note.
All of the massive May job gains, which gained an estimated 151,000, came in full-time jobs.
But at the same time, part-time posts declined by about 54,000.
"This jump was due to new entrants to the labour market obtaining full-time employment and coincides with fewer people working part time," the government agency said.
Overall, total employment has grown by 2.3 per cent over the 12-month period, suggesting that many part-time workers may have switched to full-time work and that new labour force entrants are finding full-time work.
While employment growth continued to surge in Alberta, Ontario and Quebec also posted gains in May.
"Strength in the service industries in Ontario and Quebec more than offset continued declines in manufacturing," StatsCan said.
Nationally, the largest job gains were in finance, insurance, real estate and leasing; health care and social assistance; and public administration.
For example, employment in the health care and social assistance industry was up 3.4 per cent in May from the year earlier, with the bulk of increase in hospitals.
Meanwhile, employment rose by an estimated 22,000 in public administration, all at the municipal and provincial levels. Despite the increase in May, there were declines earlier in the year, leaving the rate mostly unchanged from 12 months ago.
In the accommodation and food services industry, there were more than 17,000 more workers in May -- the first reported gain this year, with much of the increase in Alberta.
In fact, Alberta continued to post gains overall.
Employment in the province has grown by 4.2 per cent so far this year - the fastest rate of growth of all the provinces - while the overall employment rate rose to a record high of 71.4 per cent.
"Gains were fuelled by an increase in the population as workers migrated to a province where labour demand is high. In May, the unemployment rate edged down 0.1 percentage points to 3.4 per cent," StatsCan said.
Added employment in Alberta was found mainly in the service industries, such as health care and social assistance; finance, insurance, real estate and leasing and in accommodation and food services.
In Ontario, employment increased by 34,000, driving the unemployment rate down to 5.9 per cent by 0.3 percentage points.
The manufacturing sector continued to drop employees, an estimated 13,000 in May.
However, the province has been able to offset declines in manufacturing thanks to strength in its service sector.
Employment in retail and wholesale trade continued its upward trend, increasing by 26,000 in May.
Professional, scientific and technical services also contributed to May's employment increases with an additional 21,000 workers.
Meanwhile in Quebec, employment rose by 31,000 in May, pushing the unemployment rate down 0.4 percentage points to 7.9 per cent -- marking the second lowest level in the last three decades.
As with Alberta and Ontario, the employment increase was spurred by strength in the service sector which more than offset a decline of 12,000 in manufacturing.
In New Brunswick, the unemployment rate fell to 8.6 per cent in May, a record low for the province. However, the drop of 0.5 percentage point was the result of adult workers leaving the labour force rather than an increase in employment.
Men, women and youth all shared in the job gains. Youth employment rose by 25,000, with most gains in Alberta, while employment for adult women rose by 32,000.
As the jobless rate declined, strength in full-time employment pushed up wages.
The average hourly wage in May was up 3.8 per cent from the year before, compared with a 2.4 per cent jump in inflation.
Meanwhile, average hourly wages jumped by 7.3 per cent in Alberta's labour market.
Updated Fri. Jun. 9 2006 10:30 AM ET
CTV.ca News Staff
The Canadian economy gained an estimated 97,000 jobs in May, driving the unemployment rate down to 6.1 per cent, the lowest level since December 1974.
That was down from 6.4 per cent in April.
The job gains pushed the overall employment rate to an all-time high of 63.2 per cent and the monthly increase matched a record high reached in January 2002.
The Canadian dollar climbed more than one cent US Friday as the jobless report dramatically exceeded expectations.
The dollar surged on the expectation that positive employment news could bolster tighter interest rates in the coming months, BMO Nesbitt Burns economist Douglas Porter said.
"One single economic report is unlikely to alter the Bank of Canada's stance, but this one could come close," Porter said in a research note.
All of the massive May job gains, which gained an estimated 151,000, came in full-time jobs.
But at the same time, part-time posts declined by about 54,000.
"This jump was due to new entrants to the labour market obtaining full-time employment and coincides with fewer people working part time," the government agency said.
Overall, total employment has grown by 2.3 per cent over the 12-month period, suggesting that many part-time workers may have switched to full-time work and that new labour force entrants are finding full-time work.
While employment growth continued to surge in Alberta, Ontario and Quebec also posted gains in May.
"Strength in the service industries in Ontario and Quebec more than offset continued declines in manufacturing," StatsCan said.
Nationally, the largest job gains were in finance, insurance, real estate and leasing; health care and social assistance; and public administration.
For example, employment in the health care and social assistance industry was up 3.4 per cent in May from the year earlier, with the bulk of increase in hospitals.
Meanwhile, employment rose by an estimated 22,000 in public administration, all at the municipal and provincial levels. Despite the increase in May, there were declines earlier in the year, leaving the rate mostly unchanged from 12 months ago.
In the accommodation and food services industry, there were more than 17,000 more workers in May -- the first reported gain this year, with much of the increase in Alberta.
In fact, Alberta continued to post gains overall.
Employment in the province has grown by 4.2 per cent so far this year - the fastest rate of growth of all the provinces - while the overall employment rate rose to a record high of 71.4 per cent.
"Gains were fuelled by an increase in the population as workers migrated to a province where labour demand is high. In May, the unemployment rate edged down 0.1 percentage points to 3.4 per cent," StatsCan said.
Added employment in Alberta was found mainly in the service industries, such as health care and social assistance; finance, insurance, real estate and leasing and in accommodation and food services.
In Ontario, employment increased by 34,000, driving the unemployment rate down to 5.9 per cent by 0.3 percentage points.
The manufacturing sector continued to drop employees, an estimated 13,000 in May.
However, the province has been able to offset declines in manufacturing thanks to strength in its service sector.
Employment in retail and wholesale trade continued its upward trend, increasing by 26,000 in May.
Professional, scientific and technical services also contributed to May's employment increases with an additional 21,000 workers.
Meanwhile in Quebec, employment rose by 31,000 in May, pushing the unemployment rate down 0.4 percentage points to 7.9 per cent -- marking the second lowest level in the last three decades.
As with Alberta and Ontario, the employment increase was spurred by strength in the service sector which more than offset a decline of 12,000 in manufacturing.
In New Brunswick, the unemployment rate fell to 8.6 per cent in May, a record low for the province. However, the drop of 0.5 percentage point was the result of adult workers leaving the labour force rather than an increase in employment.
Men, women and youth all shared in the job gains. Youth employment rose by 25,000, with most gains in Alberta, while employment for adult women rose by 32,000.
As the jobless rate declined, strength in full-time employment pushed up wages.
The average hourly wage in May was up 3.8 per cent from the year before, compared with a 2.4 per cent jump in inflation.
Meanwhile, average hourly wages jumped by 7.3 per cent in Alberta's labour market.
I was the only member on this board with a Yellow Focus Sedan, and a 2002+ Euro Facelift on a sedan.
