‘Data for Business’ is an effort of the Langley Chamber, in partnership with the Canadian Chamber, to bring our members reports, stats, and analysis on economic and business data to help inform business and investment decisions. Read our latest update below:

Statistics Canada recently released the results of the June Labour Force Survey. Canadian employment declined slightly (-1.4K) in June, which was a significant disappointment in light of expected gains of 25K jobs. The unemployment rate increased by 0.2 percentage points in June, for an unemployment rate of 6.4%. The youth unemployment rate also rose 0.9 percentage points to 13.5% in June, which was the highest rate since September 2014, excluding 2020 and 2021 during the pandemic.

June job growth was driven by gains in part-time employment (+1.9K), while full-time employment saw a decline (-3.4K). This is consistent with an ongoing trend where part-time roles outpace full-time roles. Job gains were concentrated in Accommodation and Food Services, Agriculture, and Education. Declines were largest in Transportation, Culture and Recreation, and Retail and Wholesale.

British Columbia and Quebec reported the largest declines in employment in June. However, BC’s unemployment rate (5.2%) remains below the national average.

The overall unemployment rate for youth (aged 15 to 24) rose 0.9 percentage points to 13.5% in June. This was the highest rate since September 2014, outside the pandemic.

More significantly, the employment rate for returning students (ie: summer jobs) was 46.8%, the lowest rate since June 1998.   The unemployment rate among returning students was 15.9% in June, and was up 3.8% from a year earlier, indicating that of those students wanting summer jobs many are finding it harder to secure one.

The Canadian Chamber of Commerce expects a continuing weakening of the labour market as population growth outpaces job creation.  National unemployment is projected to approach 7% by year-end. Despite rising unemployment, average hourly wage growth accelerated to 5.4% year-over-year in June, an increase from 5.1% in May.

The combination of increasing wage growth and stagnant employment is problematic.

“The acceleration in wage growth is concerning and reinforces the cautious stance the Bank (of Canada) will take at their next meeting. They’re in a serious dilemma with both the unemployment rate and wages rising. Today’s report doesn’t bode well for markets hoping for a faster cutting cycle from the Bank, which unfortunately could put economic progress in the first half of this year at risk.”
- Andrew DiCapua, senior economist at the Canadian Chamber of Commerce

Read more:
Business Data Lab Commentary
Statistics Canada Commentary
BC Minister’s Statement on June Labour Force Survey