Key Insights from the June 2024 Labour Force Survey
The Canadian Labour Market: June 2024 Insights
The latest Labour Force Survey from Statistics Canada, released on July 5, 2024, offers a comprehensive look at the employment trends and challenges currently shaping the Canadian economy. Here, we delve into the key highlights and their implications for business owners and job seekers alike.
Employment Overview
In June 2024, the Canadian employment landscape remained relatively stable, with a slight decrease of 1,400 jobs, leaving the employment rate at 61.1%. However, the unemployment rate ticked up by 0.2 percentage points to 6.4%, reflecting a rising trend since April 2023. This increase highlights ongoing challenges in the labour market as businesses and individuals navigate post-pandemic economic adjustments.
Demographic Shifts in Employment
Youth Employment: The employment rate for young men aged 15 to 24 fell by 13,000 jobs (-0.9%). In contrast, employment among core-aged women (25 to 54) increased by 19,000 jobs (+0.3%). This shift underscores the differing impacts of economic conditions on various demographic groups.
Sectoral Changes: Significant employment changes were noted across different sectors:
Transportation and Warehousing: Employment decreased by 12,000 jobs (-1.1%).
Public Administration: Saw a decline of 8,800 jobs (-0.7%).
Accommodation and Food Services: Increased employment by 17,000 jobs (+1.5%).
Agriculture: Gained 12,000 jobs (+5.5%).
Provincial Employment Trends
Quebec: Experienced a decline of 18,000 jobs (-0.4%), highlighting regional disparities in employment growth.
New Brunswick: Noted an increase of 3,000 jobs (+0.8%).
Newfoundland and Labrador: Added 2,600 jobs (+1.1%).
Wage Growth
Average hourly wages grew by 5.4% year-over-year in June, a slight increase from the 5.1% growth seen in May. This wage growth reflects ongoing adjustments in the labour market as employers strive to attract and retain talent in a competitive environment.
Challenges for Returning Students
Returning students aged 15 to 24 faced a challenging job market. Their employment rate of 46.8% in June was the lowest since June 1998 (excluding the pandemic year of 2020). The unemployment rate for this group rose to 15.9%, indicating significant difficulties in securing summer employment.
Long-Term Unemployment
The proportion of long-term unemployed individuals (those unemployed for 27 weeks or more) increased to 17.6% in June. This trend was particularly pronounced among older individuals, with 22.0% of unemployed persons aged 55 and older being long-term unemployed.
Sectoral Employment Insights
The survey highlights notable sector-specific employment trends:
Transportation and Warehousing: Continued decline in employment for the second consecutive month.
Accommodation and Food Services: Marked the third consecutive month of employment gains.
Agriculture: Recorded the first employment increase since July 2023 despite a year-over-year decline.
Implications for Business Owners
For high-net-worth business owners and investors, these insights emphasize the need for strategic workforce planning and investment in sectors showing growth potential. Understanding these trends can help in making informed decisions about where to allocate resources and how to navigate the shifting economic landscape.
Conclusion
The June 2024 Labour Force Survey provides valuable insights into the current state of the Canadian labour market. As employment patterns continue to evolve, staying informed about these changes is crucial for businesses and job seekers alike. By understanding the underlying trends and demographic shifts, stakeholders can better prepare for the future and capitalize on emerging opportunities.
For more detailed information and data, you can access the full report [here].
By monitoring these developments closely, Lekadir LLP aims to provide its clients with up-to-date information and strategic advice to help them effectively navigate the ever-changing economic environment.
