Statistics Indicators of strong employment are found in Canada’s most recent Labour Force Survey as the economy of the nation continues to recover from the COVID-19 pandemic.
The number of unemployed people in Canada over the age of 15 divided by the country’s total labor force (people over the age of 15) was constant at 5.5% in the most recent data covering September of 2023, showing little change from the beginning of the year.
The employment rate, which is calculated as the number of people in the labor force divided by the population of Canada aged 15 and over, was also constant throughout the year, coming in at 62% in September. Women and males in the 25 to 54 age group witnessed increases in employment, while employment for those between the ages of 15 and 24 and those over 54 saw little change.
Given the recent rise in the population of the country, these findings are consistent with a tight labor market in Canada (new vacancies are swiftly filled by unemployed employees). Since the beginning of the year, the labor force in Canada has increased by 381,000 people, mostly as a result of immigrants settling down and finding work here. This trend of record-breaking yearly immigration is meant to address labor shortages in important provinces and industries.
Which sectors experienced the biggest shifts in employment?
In September 2023, several industries had job changes, the majority of which were favorable.
September showed a gain of 66,000 employed employment in the educational services sector, making up for the decline of 44,000 in August. By 19,000 positions, employment opportunities in transportation and warehousing also increased.
On the other hand, employment in the following sectors decreased in September:
- 20,000 fewer jobs in the finance, insurance, real estate, rental, and leasing sectors;
- 18,000 jobs are lost in construction; and
- 12,000 jobs are in information, culture, and recreation.
Sectors that are chosen depending on categories
Immigration, Refugees and Citizenship Canada (IRCC) has implemented category-based selection draws to the Express Entry system to address the ongoing labor market shortages in key industries. Candidates with professional experience in these industries may be selected for Canadian immigration with a greater emphasis on their professional qualifications than on their Comprehensive Ranking System (CRS) score. The first year where the results of this new policy might be evaluated is this one. Candidates with experience in labor-intensive industries may succeed in coming to Canada under these particular criteria.
In September 2023, employment in transportation and warehousing increased by 19,000 after rising by 13,000 in August. Transportation and warehousing employment has increased by 82,000 positions since January, making up more than a third (34.4%) of the overall employment gain across all sectors during this time.
A decrease of 18,000 employed positions in the construction industry in September somewhat offset a rise of 34,000 employees in August. Employment in this area has dropped by 3.4%, or 55,000 employees, since its peak in January 2023.
Social assistance and health care employment just slightly changed in September. Despite a 2.5% or 66,000 increase year over year, the rate was in line with the overall average growth rate for the year (+2.8%). According to the most recent Job Vacancy and Wage Survey statistics, the healthcare and social support sector continues to have a high rate of unfilled positions, accounting for 1 in 5 or 19.9% of all open positions.
Which provinces experienced the most employment change?
The number of employed people in Quebec climbed by 39,000 in September, a gain of 0.9% after seven months of barely noticeable fluctuations. At 4.4%, the unemployment rate was essentially unchanged from the previous month. The employment rate increased as a result of employment growth exceeding growth in the working-age population.
British Columbia added 26,000 new jobs last month, the second straight monthly rise for the province. In September, the provincial unemployment rate was 5.4%, essentially unchanged from August. In September, Ontario performed similarly, creating 19,900 new jobs across all sectors.
Contrarily, Alberta had a loss of 38,000 employed positions in September, canceling out the 30,000 positions added over the two preceding months. On a smaller scale, New Brunswick likewise saw an employment decline in September of 2,700 positions, or 0.7% of its labor force.
Other provinces also had increases in employment in September, including Manitoba (+8,800 employed positions), Saskatchewan (+6,000 positions), Nova Scotia (+3,200), and Prince Edward Island (+2,700).
What does all of this mean?
The labour market in Canada is still extremely tight, which is one of the major findings of this month’s Labour Force Survey. This is seen by the country’s employment and unemployment statistics being stable into 2023 despite record-high immigration. This is yet another illustration of how crucial immigration is to solve Canada’s ongoing labor shortages as well as historical ones.
It is crucial to remember that there are currently ongoing labor shortages in this area. Despite being targeted by IRCC as a skilled category for immigration, the huge number of open positions in the healthcare sector is a clear indication that shortages in the industry are still severe and that immigration is necessary.
However, there are encouraging evidence that the new category-based decisions made by the IRCC are having the desired impact. The Canadian construction, transportation, and housing industries have all shown positive signals of rising employment and productivity, and both have experienced sizable workforce increases. These are strong indicators that the IRCC will explore category-based draws in the future, possibly with an eye toward other Canadian industries that require employees (although it is still too early to assess the long-term efficacy of these techniques).
Importantly, while present in all of Canada’s provinces, these shortages tend to be more pronounced in less populous provinces and regions, necessitating immigration to such areas and raising the incidence of
Positive overall economic indicators for labor force growth and participation show that Canada is on track to solve shortages in critical industries.