April 07, 2017LABOUR MARKET TRENDS - MARCH 2017 LABOUR MARKET TRENDS - March 2017
Nova Scotia's seasonally adjusted employment increased by 4,600 to 450,500 in March 2017. This marks a return to growth following a decline in February.
Compared to February, Nova Scotia’s labour force increased by 8,200 to 493,200 in February. With labour supply increasing at a faster pace than the labour demand, the net result was a 0.5 percentage point increase in the seasonally adjusted unemployment rate to 8.6 per cent in March. With the increase in the labour supply and growth in the working age population (+300) the participation rate climbed 1.0 percentage points to 62.4 per cent for the month. With more jobs, March’s employment rate increased to 57.0 per cent.
In March, the growth in employment reflects increases of both full-time employment (1,900) and part-time employment (2,600).
During the first quarter of 2017 compared to the first quarter of 2016, there was an increase of 4,800 jobs (1.1 per cent) in the average employment level. Average full time employment was down 3,100 while there were 7,900 more part-time workers. The labour force was up 1,000 for the first quarter of 2017. With labour demand increasing at a faster pace than the labour supply, the net result was a drop in the average unemployment rate by 0.8 percentage points to 8.1 per cent. The labour force participation rate decreased 0.1 percentage points to 62.0 per cent. The employment rate climbed by 0.4 percentage points to 56.9 per cent.
AGE COHORTS (January-March 2017 vs. January-March 2016)
The labour force survey population estimate of 15-24-year age group declined by 1,500 comparing the first quarter of 2017 to the first quarter of 2016. The age group saw a decline of 3,600 in the labour force and 3,100 in employment during this period as the number of unemployed decreased. The unemployment rate increased 0.1 percentage points to 15.5 per cent for the first quarter of 2017 over the same period in 2016. The larger decline in employment compared to the decline in population led to a 2.1 percentage point decline in the employment rate to 53.0 per cent.
For Nova Scotians aged 25 to 54, the labour force declined 900 while employment increased 2,900 in the first quarter of 2017 compared to the first quarter of 2016. With strong growth in labour demand and falling labour supply, the net result was a 1.3 percentage points drop in the unemployment to 6.6 per cent. The labour force participation rate climbed 0.5 percentage points to 86.2 per cent and the employment rate rose 1.6 percentage points to 80.6 per cent for this age group.
For those Nova Scotians aged 55 and over, the population, labour force and employment have all increased comparing the first quarter of 2017 to the first quarter of 2016. Employment increased by 4,900, slower than the rise in the labour force of 5,600, resulting in an increase in unemployment of 700 and an increase the unemployment rate of 0.3 percentage points to 7.8 per cent. The participation rate and employment rate both increased for this age group, rising to 35.0 per cent and 32.3 per cent.
SECTORS (January-March 2017 vs. January-March 2016)
Comparing the first quarter of 2017 to the first quarter of 2016, employment in goods-producing sectors decreased by 1,600 jobs. Employment gains in agriculture, utilities and construction were not enough to offset a loss of 2,700 net jobs in the manufacturing sector.
There was a net gain of 6,300 jobs in service-producing sectors. Strong employment gains in wholesale/retail trade, health, professional services, and public administration were enough to override the job losses in financial services, educational, accommodation/food services and transportation and warehousing sector.
The increase in employment for the first quarter of 2017 over the same period in 2016 occurred with employees increasing by 3,700 and the self-employed increasing by 1,000. The gain in employees occurred with a gain of 1,900 jobs in both the private and public sector employees.
Regions (3 month moving average, January-March 2017 vs. January-March 2016)
For the first quarter 2017 compared to the first quarter of 2016, the Halifax, Cape Breton and North Shore regions reported employment growth that outpaced labour force growth, resulting in lower average unemployment rates. The Annapolis Valley economic region unemployment rate increased due to slightly faster fall in labour demand than labour supply. The Southern region saw the unemployment rate fall as the labour force (labour supply) declined at a faster pace than labour demand.
The Cape Breton region reported an increase in employment of 2,800 (6.5 per cent) for the first quarter of 2017 over the first quarter of 2016. The labour force climbed by 1,200 (2.2 per cent) for the same period. With labour demand increasing at a faster pace than labour supply, the result was a 3.4 percentage point decrease in the unemployment rate to 15.2 per cent.
For the North Shore region, employment increased 1,300 (1.4 per cent) for the first quarter of 2017 over the same period in 2016. Labour supply increased by 900 (1.2 per cent) for the same period. The increase in labour demand resulted in a 0.7 percentage point decline in the unemployment rate to 8.8 per cent.
The Annapolis region experienced a decline in employment of 800 (-1.5 per cent) followed by a fall in the labour force of 700 (-1.2 per cent) for the first quarter of 2017 over the first quarter of 2016. The net result was an increase of 0.3 percentage points in the average unemployment rate to 8.6 per cent.
The Southern region saw employment fall by 600 (-1.2 per cent) and the labour force had a decline of 800 (-1.6 per cent) for the first quarter of 2017 over the first quarter of 2016. The unemployment rate was down 0.4 percentage points to 11.0 per cent.
Comparing the first quarter of 2017 to the first quarter of 2016, Halifax (HRM) experienced an increase in employment of 1,200 (0.5 per cent) along with a fall of 200 (-0.1 per cent) in the labour supply. With labour market demand increasing at a faster pace than labour supply, the net impact was 0.6 percentage point decrease in the unemployment rate to 6.5 per cent.
Provincial Comparisons
Employment increased 1.6 per cent in Canada comparing January-March 2017 with January-March 2016. Employment grew on a year-to-date basis in eight provinces with the largest gains in British Columbia (+3.5%) and Quebec (+2.2%). Two provinces had declines, Newfoundland and Labrador (-2.1%) and Alberta (-0.1%).
The Nova Scotia unemployment rate was 8.6 per cent in March 2017. In March of last year, the Nova Scotia unemployment rate was 9.0 per cent. Eight provinces have lower unemployment rates compared to last year with New Brunswick (-1.8 percentage points) having the steepest declines. The unemployment rate was higher in Newfoundland and Labrador and Alberta. The lowest unemployment rate among the provinces in March 2017 was in British Columbia at 5.4 per cent while the highest was in Newfoundland and Labrador at 14.9 per cent.
National Comparisons: Cities
The seasonally adjusted unemployment rate for the Halifax Census Metropolitan Area was 6.5 per cent. Victoria (3.8%) had the lowest unemployment rate for a CMA this month while the highest was in Calgary (9.3%)
The seasonally adjusted employment rate for the Halifax Census Metropolitan Area was lower than last month at 62.9 per cent in March 2017.
The three month average employment ending in March for the Halifax CMA declined 0.1 per cent compared to the three month period ending in February. The largest gain among CMAs was in Barrie, Ontario were employment rose 2.9 per cent.
Note: Seasonally adjusted, 3 month average.