Statistics Canada has released the employment report for May 2024, revealing that the total number of employed people saw little change, with an increase of 27,000 jobs (+0.1%). This follows a significant rise of 90,000 jobs (+0.4%) in April. On a year-over-year basis, employment grew by 402,000 (+2.0%) in May.
The employment rate, which measures the proportion of the population aged 15 and older who are employed, declined by 0.1 percentage points to 61.3% in May. This marks the seventh decrease in the past eight months. Since its recent high of 62.4% in January and February 2023, the employment rate has dropped by 1.1 percentage points, as population growth continues to outpace employment growth.
Many Canadian workers opt for part-time employment (fewer than 30 hours per week) by choice, but a significant number do so involuntarily. An increase in the involuntary part-time rate often indicates underemployment and can result from unfavorable business or economic conditions.
In May 2024, the involuntary part-time rate rose to 18.2%, up from 15.4% a year earlier. This suggests a growing number of workers are unable to find full-time positions or are working part-time due to poor business conditions.
From May to August, the Labour Force Survey (LFS) gathers labor market data from students who attended school full-time in March and plan to return full-time in the fall. May serves as the first indicator of the summer job market, particularly for students aged 20 to 24, many of whom are still in school.
For returning students aged 20 to 24, the employment rate in May 2024 was 61.0%, down 2.9 percentage points from 63.9% in May 2023. Comparatively, the average employment rate for May in 2017, 2018, and 2019 was 62.2% (not seasonally adjusted).
Average hourly wages for employees saw a significant year-over-year increase of 5.1% (+$1.69), reaching $34.94 in May. This follows a 4.7% growth in April (not seasonally adjusted), indicating a positive trend in wage growth amidst the evolving labor market conditions.
For more detailed statistics and analysis, visit Statistics Canada’s official website.