The Canadian job market showed signs of cooling in May as unemployment ticked higher and employment was little changed.
The unemployment rate rose to 6.2% from 6.1% in April, Statistics Canada reported Friday. The number of unemployed people increased by 28,000 to 1.4 million, a jump of 2.1% on a month over month basis. Three provinces meanwhile saw declining employment figures during the month, which includes Prince Edward Island, Newfoundland and Labrador, and Alberta.
Total employment was essentially flat last month, rising by just 27,000 or 0.1%, while the employment rate declined 0.1% to 61.3% in May. That followed a 90,000 gain in April. A bigger concern here is that the gains were seen in part-time employment, which increased by 62,000, while full time employment fell 0.2%, or by 36,000 jobs.
The share of part-time workers who would prefer a full-time job jumped to 18.2% from 15.4% a year ago, indicating more underemployment. Long-term unemployment is also increasing, with 18.2% of the unemployed out of work for 27 weeks or longer.
Information for this briefing was found via Statistics Canada. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
