More jobs but unemployment still on the rise in mid-2024

Canadian jobs gains and losses by sector

When it comes to losing jobs the biggest loser was the construction sector with the loss of almost 30,000 jobs in May. Transportation and warehousing also suffered with a drop of 21,000 job, while utilities suffered a 3.5% job loss.

On the bright side, healthcare and finance sectors added jobs in May — 30,000 and 29,000, respectively. Manufacturing also started a rebound with the addition of 8,000 new positions, although factory payrolls dipped in the last 12 months, overall.

Only three provinces reported job gains in May, with Ontario's gain of 49,500 jobs leading the pack. Keep in mind, almost all of these new jobs were in part-time positions (about 48,400 out of 49,500).

The two smaller prairie provinces were the only others witnessing growth, with Manitoba and Saskatchewan adding 7,800 and 5,400 jobs, respectively. Both also saw their jobless rates tick lower.

Alberta suffered the most with a loss of 20,400 jobs and a two-tick hike in the unemployment rate to 7.2%. British Columbia also reported a significant drop of 7,900 jobs, and a big 0.6% growth in its jobless rate, which now sits at 5.6%.

Unemployment rates are trending up across all major demographic groups over the previous 12 months, with those aged 15 to 24 recording the biggest increases.

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Employment trends

This May, 13.2% of employed Canadians aged 15 to 69 were working exclusively at home – not seasonally adjusted – and 10.3% had a hybrid work arrangement.

In Ontario, the involuntary part-time rate was 18.2% in May, up from 15.4% observed 12 months earlier. That is the proportion of part-time workers who could not find a full-time job or who worked part-time due to poor business conditions.

Furthermore, across Canada, the increase of involuntary part-time workers was up on a year-over-year basis among certain demographic groups. It rose 2.9 points to 22.6% among women aged 25 to 54, and 2.4 points to 10.4% among women aged 55 and older.

However, average hourly wages rebounded, popping back up to a 5.1% year-over-year increase from 4.7% in April.

“…The Bank will note the rising slack in the job market — the steady climb in the jobless rate… and conclude that it's a matter of time before wage growth relents,” Porter writes.

What should Canadians take from this economic snapshot?

While some sectors grow and other face job cuts, it's best if Canadians consider smart, strategic ways to maintain employability. This could mean investing in yourself — a strategy Warren Buffett is very keen on, particularly during tougher economic times. It could also mean finding a profitable side hustle or looking for ways to trim the spending budget.

If your goal is to invest in your job skills and knowledge, check out LinkedIn Learning. The fully online resource can help you discover and develop the most in-demand business, tech and creative skills with personalized recommendations and more than 14,000 courses taught by industry experts. Plus, you can try it before you buy it with a free month. Try LinkedIn Learning.

If your goal is to trim extraneous expenses from your monthly budget, consider using a budget app, such as YNAB. Customers claim an average savings of $600 over the first two months just by switching to YNAB and tracking how and what they spend. Try YNAB for free for the first 34 days .

Another option to supplement your income? Try investing

Sometimes, a full- or part-time gig may not fully cut it when trying to make ends meet or hit certain savings goals. Moreover, getting a side hustle, especially one which does not require much active participation, can seem more like a fantasy rather than reality.

With investing, especially through robo-advisor services, you can reap the benefits of building a solid portfolio through more passive means. Better yet, robo-advisors are government-regulated and must register as portfolio managers, which means that they have a legal obligation to act as fiduciaries on behalf of its clients.

Wealthsimple is likely one of the first options to come up. It was the first robo-advisor on the scene here in Canada. It's a user-friendly investment tool with little human interaction, where your investment can accrue wealth slowly over time by choosing amongst eight to 10 exchange-traded funds (ETFs) and whether your portfolio will be conservative, balanced or focused on growth. Sign up for Wealthsimple and select where to place your investments, be it a Registered Retirement Savings Plan (RRSP), Tax-Free Savings Account (TFSA) or others.

Moka is known for its streamlined, effective approach to investing. It's designed for hassle-free investing, automating contributions to the S&P 500, known for its solid average annual return of 10% over 65 years. With a flat fee of just $15 monthly, it's much more cost-effective compared to traditional managed funds, translating to significant savings over time. If you're a beginner or prefer a 'set and forget' investment approach, be sure to sign up for Moka and enjoy the benefits long-term growth.

Sources

1. Statistics Canada: Labour Force Survey, May 2024 (June 7, 2024)

2. BMO EconoFACTS: Canadian Jobs: E-Day (June 7, 2024)