The volatility in the employment data continued in Canada during May with an increase of 95,000 reported, building on the 12,500 rise in April.
Figures released this morning by Statistics Canada say these back-to-back gains mean that the economy more than recaptured the 25,700 jobs lost in the first quarter. May's increase was the second largest monthly gain on record. The unemployment rate inched down to 7.1% from April's 7.2% holding in the range established since November.
The largest sources of strength in the report showed up in construction, wholesale/retail trade, and education. Private-sector employment accounted for all the increase in May with a small decline in self-employment offset by a small increase in public sector employment. The gains in May were concentrated in full-time employment which increased by 76,700 while part-time employment increased by a modest 18,200 reversing much of April's 23,600-worker decline.
On an industry basis, manufacturing employment fell by 14,200 largely reversing the 20,600 gain recorded in April. Year-to-date the manufacturing sector has cut 65,000 jobs. Construction employment conversely posted a large increase in May, rising 42,700.
On a provincial basis, the largest gain was recorded in Ontario, where employment increased by 51,000 in May and the unemployment rate fell to the lowest level since November 2008 at 7.3%. Quebec and Alberta also posted solid increases in employment in the month.
Alberta's unemployment rate, however, increased by 0.4 ppt to 4.8% as there were more entrants into the labour forecast. Saskatchewan saw its unemployment rate rise to 4.5% from 4.0% as employment dipped slightly while the labour force expanded modestly. Still, the province retained the title of having the lowest unemployment rate in Canada.
