Labour force survey shows gains in December and in 2019
The latest version of Statistics Canada’s Labour Force Survey shows that employment increased by 35,000 (or 0.2 percent) to 19,127,000 in December, while the national unemployment rate dropped by 0.3 percentage points to 5.6 percent.
Gains were reported across a number of sectors and demographics. For example, employment in the accommodation and food services industry grew by 25,000 (+2.0 percent), while employment in construction increased by 17,000 (+1.2 percent) to nearly 1.5 million.
In the last year, employment in Canada increased by 320,000 or 1.7 percent, a faster pace than in 2018 (+1.1 percent). The growth was spread across the first three quarters of the year and was mostly the result of gains in full-time work (+283,000 or +1.9 percent).
The services-producing sector (+367,000 or +2.5 percent) drove employment gains in 2019, and more than offset a decline in the goods-producing sector (-47,000 or -1.2 percent). The number of employees in both the private and public sectors increased in 2019, while self-employment was little changed.
In the services-producing sector, there were notable increases in professional, scientific and technical services (+86,000), wholesale and retail trade (+77,000), health care and social assistance (+75,000) and finance, insurance, real estate, rental and leasing (+75,000). Most of the growth in the services sector was in Ontario (+245,000).
Employment fell in the goods-producing sector, reflecting declines in manufacturing (-40,000), natural resources (-29,000) and utilities (-15,000) which were tempered by an increase in construction (+29,000). From December 2018 to December 2019, employment in manufacturing declined in Ontario and British Columbia, while employment in natural resources declined in five provinces, most notably Alberta and British Columbia.
Ontario employment rises in December and across 2019
Here in Ontario, employment increased by 25,100 (+0.3 percent) in December, the result of gains in full-time work. Specifically, more Ontarians were working in construction (8.5 percent to 551,100) and public administration (5.4 percent to 387,900).
Over the past year, employment in Ontario rose 243,000 (+3.3 percent), the largest year-over-year increase since 1987. Employment gains were mostly in full-time work (+227,000 or +3.8 percent). There were increases in a number of industries, including professional, scientific and technical services, as well as health care and social assistance.
Since June 2018, employment in Ontario has risen by 296,700.
The provincial government claimed its share of credit for the job-creation announcement.
"We are working to create an environment that attracts investment and encourages entrepreneurs to grow their businesses and create high-paying, good quality jobs in Ontario, and we are seeing the results of that," said Vic Fedeli, Minister of Economic Development, Job Creation and Trade.
The province has further plans to incite businesses to grow. Its Better for People, Smarter for Business Act, 2019 aims to cut red tape and lower the cost of doing business. The government estimates that by introducing such measures as fixing the minimum wage at $14 per hour, cancelling the cap-and-trade carbon tax, and delivering corporate income tax relief through the Capital Cost Allowance, small businesses will save $2.3 billion this year alone. The government has also cut the small business corporate income tax rate to 3.2 percent.
"Ontario is heading in the right direction," said Fedeli. "By reducing small business taxes and cutting red tape, we are creating a more competitive business landscape and giving job-creators the tools they need to create more jobs and build a more prosperous Ontario."