Unemployment rate dips to 7.4 per cent

With the exception of the manufacturing sector, 2003 was a strong year for job growth: Statistics Canada


The national unemployment rate edged down 0.1 percentage points to 7.4 per cent in December, according to the latest figures from Statistics Canada.

An estimated 53,000 jobs were created last month, mostly full-time. Over the last four months, 219,000 jobs have been added to the Canadian economy, four times the increase of 52,000 jobs seen over the first eight months of 2003.

The proportion of the working-age population holding a job (known as the employment rate) rose to an all-time high of 62.7 per cent in December. Similarly, the labour force participation rate reached a record level, rising to 67.7 per cent.

Weakness in the manufacturing sector hurts 2003 numbers

In 2003, total employment grew by 1.7 per cent (271,000 jobs), down from the 3.7 per cent (560,000 jobs) growth rate observed in 2002. Statistics Canada laid the blame for the slowdown in 2003 on job losses in the manufacturing sector.

Since November 2002, the number of manufacturing jobs has declined by 82,000 (down 3.5 per cent). Almost all of the decline in manufacturing occurred in Quebec and Ontario. The industries hardest hit were computer and electronic products and electrical equipment and appliance manufacturing.

Employment gains for adult women

For a fourth straight month, the number of jobs increased for both adult women and adult men. In December, employment increased by 33,000 among adult women, bringing gains over the year to 145,000 (up 2.4 per cent). Their unemployment rate fell 0.2 percentage points in December to 6.0 per cent.

In December, employment among adult men grew by 20,000. Their unemployment rate fell 0.4 percentage points to 6.1 per cent, the result of a large decrease in the number of adult men looking for work. With gains at the beginning and at the end of the year, employment among adult men increased by 112,000 (up 1.6 per cent) over 2003.

In contrast to 2002, labour market conditions remained weak for youth throughout 2003. Youth employment was little changed in December and finished the year up only 0.6 per cent, well below the growth rate of 4.6 per cent in 2002. As more youth were looking for work, their unemployment rate jumped 0.7 percentage points to 14.0 per cent.

Gains in health care, social assistance and construction

In December, employment rose in health care and social assistance (28,000 new jobs), management of companies and administrative and other support services (25,000 jobs), transportation and warehousing (13,000 jobs) and agriculture (8,000 jobs.)

During 2003, four sectors were the main engines of employment growth. Health care and social assistance posted the largest increase, adding 77,000 jobs (up 4.7 per cent) since the start of the year. Employment in this sector has been rising since 2001, according to Statistics Canada.

Over the past two years, low interest rates and a robust housing market continued to fuel strong employment growth in construction. Despite little change in December, the number of construction jobs is up 45,000 (up 5.0 per cent) since the start of 2003. The finance, insurance, real estate and leasing sector also gained from the real estate boom, adding 53,000 jobs (up 5.9 per cent) since the start of 2003.

After little change in 2002, employment in public administration grew in the first eight months of 2003. This sector now has 47,000 more jobs (up 6.0 per cent) than a year ago.

Following strong growth in 2002, employment in the professional, scientific and technical services sector remained flat for much of 2003. The sector ended the year on a negative note, with a decrease of 15,000 jobs in December. This decline brings losses for the year to 36,000 (down 3.5 per cent), mainly in computer systems design and legal services.

Public and private sectors both post gains

In December, the private sector increased by 40,000 employees, bringing gains since the start of the year to 106,000 (up 1.0 per cent). The public sector added 18,000 employees in December, bringing year-over-year gains to 107,000 (up 3.6 per cent.)

As a result of the strength of the construction sector, the number of self-employed workers grew by 58,000 (up 2.5 per cent) in 2003, with most of the increase in the first eight months of the year.

Unemployment rates by jurisdiction

JurisdictionNovemberDecember% change
Canada7.57.4-0.1
Newfoundland and Labrador17.418.00.6
Prince Edward Island11.110.1-1.0
Nova Scotia10.19.0-1.1
New Brunswick10.29.9-0.3
Quebec9.19.40.3
Ontario6.86.7-0.1
Manitoba5.45.0-0.4
Saskatchewan5.75.70.0
Alberta5.04.9-0.1
British Columbia7.66.8-0.8

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