Unemployment Rates and Labour Market Participation in Canada (July 2023)

The Canadian economy is constantly evolving, and one critical aspect of its health is the employment landscape.

Unemployment rates and labour market participation play a significant role in determining the nation's overall economic well-being.

The latest unemployment and labour market participation statistics are out, and we examine the labour market participation trends across the country.

Unemployment Rates on the Rise:

Recent data reveals that unemployment has been on an upward trajectory for the past three months, reaching 5.5% nationally. Alberta, in particular, is experiencing a higher unemployment rate, currently at 6%. These features may well arise from global recessionary trends and increased interest rates.

Reasons for Non-Participation in the Labour Market:

A key aspect of understanding unemployment is exploring why certain individuals are not participating in the labour market. Among Canadians not in the workforce, 9% have faced company-initiated layoffs within the past year, while 8% have voluntarily left their jobs during the same period. Additionally, 67% of individuals currently not in the labour market have not worked at all in the past year, while 16% have never been employed.

Gender Disparities in Labour Market Participation:

The data indicate noteworthy gender disparities in labour market participation. Women constitute a higher % of those not in the labour market, at 57%. Within this group, 53% have not worked in the past year, and 61% have never held a job. These findings underscore the importance of addressing gender-specific barriers and promoting inclusivity in the workforce.

Alberta's Labour Market Participation:

Alberta stands out with the country's highest labour market participation rate, currently at 65.6%, surpassing the national average of 62%. This suggests a higher proportion of the province's population actively engaging in the workforce. Understanding the reasons behind Alberta's higher participation rate can offer valuable insights into creating effective strategies for boosting workforce engagement in other regions.

Implications and Possible Solutions:

The increasing unemployment rates and remaining disparities in labour market participation have significant implications for Canada. Current trends may cause the Bank of Canada to pause interest rate hikes in September. Enhancing and diversifying labour force engagement is essential for promoting economic growth and social stability.

Possible solutions to combat unwanted unemployment include:

1. Upskilling and Reskilling: Investing in education and training programs to equip the workforce with relevant skills that match the job market demands.
2. Supporting Job Creation: Implementing policies encouraging businesses to expand and hire more employees, boosting employment opportunities.
3. Promoting Inclusivity: Implementing measures to break down barriers faced by underrepresented groups, such as women, in accessing employment opportunities.
4. Economic Diversification: Encouraging diversification of industries to reduce reliance on sectors that are prone to fluctuations and downturns.

Respectfully submitted,

Sam Kemble, Executive Operating Officer,

National Construction Council, Local 1999

Sources:

Labour Market Notes | Alberta.ca, Labour statistics (statcan.gc.ca), Bargaining Update, July 2023 (alberta.ca)