Youth unemployment, quality of jobs a big concern: Georgetti comments on August job numbers

Friday, 6 September 2013    http://www.canadianlabour.ca

OTTAWA ― The President of the Canadian Labour Congress says that youth unemployment and the quality of jobs across the economy remain big concerns in Canada.

Ken Georgetti was commenting on the release by Statistics Canada of its Labour Force Survey for August 2013. There were 1,362,000 unemployed Canadians in August and the overall unemployment rate was 7.1%. In the 15-to-24 age group, official unemployment stood at 14.1%, an increase from 13.9% in July. Fully 48.3% of young workers were employed part-time, up from 47.9% in July. 

“Youth unemployment was too high back in July and it got even higher in August,” says Georgetti, “Most of the new jobs we saw in the entire labour force in August were part-time. People cannot build lives and support families on part-time work.”

Georgetti is calling governments and employers to invest in job creation and training. “There is a crying need for physical infrastructure and good quality social services in Canada and we have unemployed people who would be only too happy to  be working for the country’s benefit.” 

He says that Ottawa has provided billions in corporate tax giveaways in the hope  that companies would invest in job creation and training. “Those companies are  sitting on the cash instead of investing it in job creation and training. They must  put that money to work in the economy.” 

Georgetti adds that the federal government should set a new direction for assisting in job creation when it delivers its Speech from the Throne in October. 

Quick Analysis from CLC Senior Economist Angella MacEwen

There were 1.36 million unemployed workers in Canada in August 2013, and the unemployment rate was 7.1%. Small gains in employment in August offset losses in July, but the gains were concentrated in part-time work and self-employment. Gains in health care and social assistance, information, culture, and recreation, and accommodation and food services offset losses in other areas such as educational services, finance, insurance, real estate and leasing, and other services.
The real unemployment rate for young workers aged 15-24, was 19.1% in August, similar to the past three years in August and five percentage points higher than the pre-recession rate. In comparison, the real unemployment rate for workers over 25 is 8.5%, which is one percentage point higher than the pre-recession rate.
The increase in part time jobs was concentrated among young workers and women over 55. Involuntary part-time remains high at 30% among part-time workers who would like full-time work. This is compared to 25% pre-recession. The part-time rate for young workers rose to 48.3% this August, a full percentage point higher than  in  August 2012. The increase in part-time work among young workers explains why the average hours worked by students this summer fell to 23.7 per week, the first decline in hours worked since 2009.
While there were 246,100 more jobs August 2013 compared to the previous August, the labour force grew by 237,500 over the same period, so unemployment declined by a net of only 8,700 persons. 

The Canadian Labour Congress, the national voice of the labour movement, represents 3.3 million Canadian workers. The CLC brings together Canada’s national and international unions along with the provincial and territorial federations of labour and 130 district labour councils.

Web site: www.canadianlabour.ca
Follow us on Twitter @CanadianLabour

Contacts:  Angella MacEwen, CLC Senior Economist, 613-526-7412.
                 Dennis Gruending, CLC Communications: Tel. 613-526-7431.
Cell-text: 613-878-6040. Email: dgruending@clc-ctc.ca

Labour Force Survey, August 2013

http://www.statcan.gc.ca    Friday, September 6, 2013

PDF version

Previous release

Employment increased by 59,000 in August, mainly in part-time work, and the unemployment rate declined 0.1 percentage points to 7.1%. Over the six months to August, employment gains averaged 12,000 per month, lower than the average of 29,000 observed during the preceding six-month period.

Since August 2012, employment has increased 1.4% (+246,000). At the same time, the number of hours worked has grown 1.3%.

Chart 1
Employment

Line chart – Chart 1: Employment, from August 2008 to August 2013

Chart description: Employment

CSV version of chart 1

Provincially, employment increased in Ontario and Alberta, while it declined in Manitoba.

Employment in health care and social assistance rose in August, offsetting a decline in July. There were also more people working in information, culture and recreation; accommodation and food services; and in construction. At the same time, there were fewer employed in educational services; “other services”; finance, insurance, real estate and leasing; and agriculture.

Employment gains were concentrated among people aged 55 and over, while there was little change among youths and people aged 25 to 54.

The employment rate of returning students aged 15 to 24 was up slightly this summer compared with last summer, but still low compared with rates prior to the 2008/2009 labour market downturn.

Chart 2
Unemployment rate

Line chart – Chart 2: Unemployment rate, from August 2008 to August 2013

Chart description: Unemployment rate

CSV version of chart 2

Employment up in Ontario and Alberta

In Ontario, employment increased by 44,000 in August, mostly in part-time work, and the unemployment rate was 7.5%. Compared with 12 months earlier, employment growth in the province was 2.2%, higher than the national average of 1.4%.

In August, employment in Alberta rose by 15,000, the fourth notable increase in five months. These recent gains have brought year-over-year employment growth to 3.6%. As more people searched for work in August, the unemployment rate rose 0.3 percentage points to 4.8%.

Employment in Manitoba declined for the second consecutive month, down 3,100 in August. At the same time, the unemployment rate decreased by 0.3 percentage points to 5.2% as fewer people were looking for work. Compared with 12 months earlier, employment in the province was little changed.

Despite little change in employment in Quebec, the unemployment rate declined 0.3 percentage points to 7.9% in August as there were fewer people looking for work. On a year-over-year basis, employment was little changed, as gains in the first five months of the period were offset by recent losses.

Industry perspective

In health care and social assistance, employment rose by 60,000 in August, more than offsetting the decline in July. Employment in this industry has been on a long-term upward trend and has increased by 2.5% since August 2012.

Employment increased by 33,000 in information, culture and recreation in August, countering losses over the previous two months. These gains brought employment to a level similar to that of 12 months earlier.

In August, the number of people working in accommodation and food services increased by 26,000. Employment rose by 3.9% compared with 12 months earlier.

Employment in construction rose by 18,000 in August. Following a recent low in August 2012, employment in this industry has increased 9.1%.

Employment in educational services declined by 22,000 in August and has fallen by 2.8% from 12 months earlier.

In August, employment in “other services” fell by 19,000, contributing to a 12-month decline of 4.1% in this industry.

There were 19,000 fewer people working in finance, insurance, real estate and leasing in August. Employment in this industry has been relatively unchanged over the previous 12 months.

Agriculture employment was down by 11,000 in August, bringing employment to the same level as 12 months earlier.

In August, there were 40,000 more people working as employees, mainly within the private sector. Over the previous 12 months, the number of employees increased 1.5% in the private sector, while it was little changed in the public sector. At the same time, self-employment rose 3.6%, driven mostly by gains in early 2013.

Employment gains among people aged 55 and over

In August, employment among people aged 55 and over rose by 52,000, with most of the gains among women. Compared with 12 months earlier, employment for men and women in this age group increased by 146,000 (+4.5%), partly a result of population aging.

Employment among youths aged 15 to 24 was little changed in August, and the unemployment rate was 14.1%. Youth employment has increased 1.7% since August 2012, mainly a result of gains in the first half of the period.

Among people aged 25 to 54, employment was little changed in August. Compared with 12 months earlier, employment for this group was up 0.5% (+61,000), with the gains coming in 2012.

Student summer employment

From May to August, the Labour Force Survey collects labour market data about young people aged 15 to 24 who were attending school full time in March and who intend to return to school full time in the fall. The published data are not seasonally adjusted; therefore, comparisons can only be made on a year-over-year basis.

The average employment rate for May to August for students aged 15 to 24 was 48.6%, up slightly from last summer (47.9%), and the same as the rate in the summer of 2009 (48.6%), when student employment was hard hit by the labour market downturn. In contrast, the rates averaged 54.1% in the summers of 2006 to 2008.

The employment rate for students aged 15 and 16 declined to 24.4% this summer, the lowest rate since comparable data have been available. On the other hand, employment rates rose for students aged 17 to 19 and 20 to 24 compared with last summer.

The average unemployment rate over the summer for students aged 20 to 24 was 11.2%, while it was 17.4% for those aged 17 to 19, and 28.8% for students aged 15 and 16.

The average number of hours worked at all jobs during the summer of 2013 by students aged 15 to 24 was 23.7 hours per week, down from 24.2 hours the previous summer. This was the first decline in hours among these students since the summer of 2009.

Table 1 

Labour force characteristics by age and sex – Seasonally adjusted

Table 2 

Employment by class of worker and industry (based on NAICS¹) – Seasonally adjusted

Table 3 

Labour force characteristics by province – Seasonally adjusted

EI benefits falling faster than unemployment

By Erin Weir  http://rabble.ca        July 19, 2013

Statistics Canada reported this week that 12,290 fewer Canadians received Employment Insurance (EI) benefits in May compared to April. EI benefits are shrinking far faster than unemployment.

In percentage terms, the number of EI recipients declined as much in just the last month as unemployment declined over the past year. Between April and May, the number of unemployed Canadians decreased by only 1 per cent while the number of EI beneficiaries decreased by 2.4 per cent. Compared to May of last year, the number of unemployed workers was down by 2.4 per cent but the number of EI beneficiaries was down by 7.4 per cent.

We already know from the Labour Force Survey that unemployment rose in June. The downward trend in EI is troubling given that more workers will likely need benefits.

The federal government is cutting back EI too quickly given that unemployment is barely decreasing. As Armine Yalnizyan points out, EI coverage is now at its lowest level since World War II.

Erin Weir is an economist with the United Steelworkers union and a CCPA research associate