Canada’s unemployment rate dropped to a new record low of below 5 percent during June, as its labour market tightened up like never before.

The Canada jobs Labour Market Survey showed that, despite employment falling by 43,000, unemployment still fell by 0.2 percentage points to 4.9 percent, as fewer people searched for work.

Unemployment was below 5 percent in six out of 10 provinces, and even below 4 percent in Saskatchewan and Manitoba.

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In the core-aged working population of 25 to 54-year-olds, unemployment fell to 4.1 percent, another new record low.

Men in the age-group recorded an unemployment rate of 4 percent, while women were 4.2 percent unemployed.

What Are The Labour Force Survey Highlights?

Unemployment rate (%) 4.9
Employment rate (%) 61.7
Labour force participation rate (%) 64.9
Number unemployed 1,003,500
Number working 19,597,100
Youth (15-24) unemployment rate (%) 9.2
Men (over 25) unemployment rate (%) 4.3
Women (over 25) unemployment rate (%) 4.0

Source: Statistics Canada

Young people saw similar declines, with those aged 15 to 24 recording unemployment of 9.2 percent, a fall of 0.6 percentage points. Women in the age-group were 7.1 percent unemployment, and men 11.1 percent.

Among older workers followed the same pattern. Unemployment for women aged 55 and older fell 0.5 percentage points to 3.6 percent, while men in the same age-group recorded an unemployment rate of 5.2 percent.

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Provincial Canada Jobs Picture

Provincially, the provinces to record the lowest unemployment rates were Manitoba and Saskatchewan.

In Manitoba, unemployment fell 0.9 percentage points to 3.8 percent, nearing the record low of 3.7 percent seen in June 2006. Employment rose by 4,000 job in the province.

Saskatchewan, meanwhile, recorded unemployment of 3.9 percent after losing 300 jobs in June, as fewer people searched for work.

Employment in Quebec also fell by 27,000 jobs in June, although unemployment held steady at 4.3 percent. Losses in natural resources, as well as information, culture and recreation in the French-speaking province were offset by gains in professional, scientific and technical services, as well as manufacturing.

Unemployment Rates In Canada’s Provinces

Jobs change in last month Unemployment rate (%)
British Columbia 6,100 4.6
Alberta 2,000 4.9
Saskatchewan -300 3.9
Manitoba 4,000 3.8
Ontario -24,700 5.1
Quebec -27,000 4.3
New Brunswick -700 6.1
Nova Scotia 100 7.0
Prince Edward Island 1,600 4.9
Newfoundland & Labrador -4,300 9.9
CANADA -43,200 4.9

Source: Statistics Canada

Canada Jobs Picture By Industry

In the services sector, jobs fell by 76,000, which was offset by gains in the goods-producing sector.

The largest decline was in retail trade, which lost 58,000 jobs to erase gains made earlier in the year. Compared with 12 months earlier, there were 67,000 more people working in retail trade.

Employment also fell in health care and social assistance (-20,000), information culture and recreation (-14,000), and educational services (-14,000) in June. Employment was up in public administration (+15,000).

The goods-producing sector added 33,000 jobs, including 23,000 in construction and 26,000 in manufacturing.

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