Canada Jobless Rate Rises to 6.3% in October


Canada unemployment rate went up 0.1 percentage point to 6.3% in October of 2017, above market expectations of 6.2 percent as more young people joined the labor market. Overall, employment increased by 0.2 percent or 35 000 to 18.489 Million. Employment gains were driven by full-time work (+89,000), while fewer people worked part time (-53,000).

There were 18,000 more youths aged 15 to 24 employed in October, with all of the growth in full-time work. At the same time, their unemployment rate rose 0.8 percentage points to 11.1%, as more of them searched for work. Total employment for core-aged 25- to 54-year-olds held steady in October, while their unemployment rate fell 0.2 percentage points to 5.4%.

The largest employment increase was in Quebec, followed by Alberta, Manitoba, Newfoundland and Labrador, and New Brunswick. At the same time, there was a decline in Saskatchewan.

Employment rose in several industries, led by "other services;" construction; information, culture and recreation; and agriculture.

Employment was up by 21,000 in the "other services" industry in October. Compared with 12 months earlier, employment in this industry was little changed. "Other services" include services such as those related to civic and professional organizations, and personal and laundry services. In construction, employment rose by 18,000 in October. Compared with October 2016, employment in construction was virtually unchanged. There were 15,000 more people working in information, culture and recreation industries in October. On a year-over-year basis, employment in this industry was little changed. In October, employment in agriculture increased by 6,100, reaching a level similar to that observed in October 2016.

Employment in professional, scientific and technical services was little changed in the month, but this industry was the fastest growing on a year-over-year basis, up 85,000 or 6.1%. Much of the year-over-year increase was in computer system design services.

Manufacturing employment edged up in October (+7,800) and was up by 51,000 (+3.0 percent) on a year-over-year basis. Employment in this industry has been on an upward trend since the start of 2017. The increase in the 12 months to October was mostly attributable to subsectors such as electrical equipment, appliance and component manufacturing.

Employment was down by 36,000 in trade, mostly in wholesale. On a year-over-year basis, employment in this industry was up by 47,000 (+1.7 percent).

The number of private sector employees rose by 39,000 in October, while public sector employment was little changed. Compared with 12 months earlier, the number of private sector employees increased by 165,000 (+1.4 percent) and public sector employment rose by 83,000 (+2.3 percent).

Self-employment was little changed in October, but was up by 60,000 (+2.1 percent) on a year-over-year basis.

Statistics Canada |Luisa Carvalho | luisa.carvalho@tradingeconomics.com
11/3/2017 1:07:38 PM