June 09, 2017LABOUR MARKET TRENDS - MAY 2017 Nova Scotia's seasonally adjusted employment increased by 200 to 450,200 in May 2017. This follows a slight decline in April after strong growth in March.
Compared to April, Nova Scotia’s labour force decreased by 2,200 to 488,600 in May. With labour supply falling at a faster pace than the labour demand, the net result was a 0.4 percentage point decrease in the seasonally adjusted unemployment rate to 7.9 per cent in May. With the decrease in the labour supply and growth in the working age population (+400) the participation rate declined 0.3 percentage points to 61.7 per cent for the month. With just a small change in employment level, there was no change in the employment rate at 56.9.
In May, the increase in employment was solely due to 200 more full-time jobs.
During the first five months of 2017 compared to the first five months of 2016, there was an increase of 4,000 (0.9 per cent) in the average employment level. Average full time employment was down 2,000 while there were 6,000 more part-time workers. The labour force was up 1,600 for the first five months of 2017. With labour demand increasing at a faster pace than the labour supply, the net result was a decline in the average unemployment rate by 0.5 percentage points to 8.1 per cent. The labour force participation rate decreased 0.1 percentage points to 61.9 per cent. The employment rate increased by 0.3 percentage points to 56.9 per cent.
AGE COHORTS (January-May 2017 vs. January-May 2016)
The labour force survey population estimate of the 15-24-year age group declined by 1,400 comparing the first five months of 2017 to the first five months of 2016. The age group saw a decline of 3,000 in the labour force and 2,500 in employment during this period as the number of unemployed decreased. The unemployment rate decreased 0.1 percentage points to 15.1 per cent for the first five months of 2017 over the same period in 2016. The larger decline in employment compared to the decline in population led to a 1.6 percentage point decline in the employment rate to 53.5 per cent.
For Nova Scotians aged 25 to 54, the labour force increased by 600 and employment increased 2,700 in the first five months of 2017 compared to the first five months of 2016. With strong growth in labour demand and falling labour supply, the net result was a 0.7 percentage points decline in the unemployment to 6.8 per cent. The labour force participation rate increased 0.9 percentage points to 86.3 per cent and the employment rate rose 1.5 percentage points to 80.4 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 five months of 2017 to the first five months of 2016. Employment increased by 3,800, slower than the rise in the labour force of4,100, resulting in an increase in unemployment of 300. The unemployment rate declined 0.1 percentage points to 7.9 per cent. The participation rate and employment rate both increased for this age group, rising to 34.8 per cent and 32.2 per cent respectively. Over half of the year to date gains in part time work are in the 55 and over age cohort. This cohort has seen a recent upswing in part time employment, while full time employment has been stable or dropping slightly in recent months.
SECTORS (January-May 2017 vs. January-May 2016)
Comparing the first five months of 2017 to the first five months of 2016, employment in goods-producing sectors decreased by 700 jobs. Employment gains in agriculture and utilities were not enough to offset a loss in the other sectors.
There was a net gain of 4,700 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 services, accommodation/food services and transportation and warehousing.
The increase in employment for the first five months of 2017 over the same period in 2016 occurred with employees increasing by 3,700 and the self-employed increasing by 400. The gain in employees occurred with a gain of 300 jobs in public sector and a gain of 700 in the private sector.
Regions (3 month moving average, January-May 2017 vs. January-May 2016)
For the first five months of 2017 compared to the first five months 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 and the South Shore economic regions both had no change in employment coupled with a drop in labour force to produce lower average unemployment rates.
The Cape Breton region reported an increase in employment of 1,600 (3.7 per cent) for the first five months of 2017 over the first five months of 2016. The labour force increased by 200 (0.3 per cent) for the same period. With labour demand increasing at a faster pace than labour supply, the result was a 2.8 percentage point decrease in the unemployment rate to 15.1 per cent.
For the North Shore region, employment increased 1,500 (2.3 per cent) for the first five months of 2017 over the same period in 2016. Labour supply increased by 1,100 (1.5 per cent) for the same period. The increase in labour demand resulted in a 0.7 percentage point decline in the unemployment rate to 9.3 per cent.
The Annapolis region had no change in employment coupled with a decline of 200 in the labour force for the first five months of 2017 over the same period in 2016. The net result was decrease of 0.2 percentage points in the average unemployment rate to 8.7 per cent.
The Southern region also saw no change in employment along with a drop of 200 in the labour force for the first five months of 2017 over the first five months of 2016. The unemployment rate was down 0.2 percentage points to 10.6 per cent.
Comparing the first five months of 2017 to the first five months of 2016, Halifax (HRM) experienced an increase in employment of 100 (0.1 per cent) along with a decline of 300 (-0.1 per cent) in the labour supply. These slight adjustments result in a 0.2 percentage point decrease in the unemployment rate to 6.8 per cent.
Provincial Comparisons
Employment increased 1.6 per cent in Canada comparing January-May 2017 with January-May 2016. Employment grew on a year-to-date basis in nine provinces with the largest gains in British Columbia (+3.6%), Prince Edward Island (+2.7%), and Quebec (+2.2%). Employment in Newfoundland and Labrador (-3.1%) declined over the first five months of 2017 compared to 2016.
The Nova Scotia unemployment rate was 7.9 per cent in May 2017. In May of last year, the Nova Scotia unemployment rate was 8.2 per cent. Eight provinces have lower unemployment rates compared to last year with Prince Edward Island (-1.5 percentage points) having the steepest decline. The unemployment rate was higher in Newfoundland and Labrador (+3.0 percentage points) compared to May 2016. The lowest unemployment rate among the provinces in May 2017 was in Manitoba at 5.3 per cent while the highest was in Newfoundland and Labrador at 14.8 per cent.
National Comparisons: Cities
The seasonally adjusted unemployment rate for the Halifax Census Metropolitan Area was 7.0 per cent. Victoria (3.7%) 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 63.0 per cent in May 2017.
The three month average employment ending in May for the Halifax CMA increased 0.6 per cent compared to the three month period ending in April. The largest gain among CMAs was in Kelowna, BC where employment rose 2.5 per cent.
Note: Seasonally adjusted, 3 month average.