February 15, 2012

Construction industry employment experiences another month of decline

The labour market in Canada is cooling off as the number of people working was virtually unchanged in January and the construction industry experienced another month of decline.

“There is no one single factor to explain the softening trend, although the sustained decline in finance, insurance & real estate is particularly notable,” said Douglas Porter, deputy chief economist with BMO Capital Markets.

“Previously strong sectors, such as construction and public administration, are also slowing. With domestic drivers gearing down, the job market needs the U.S. economy to gather some serious momentum to keep the recovery on track.”

Statistics Canada reported recently that total employment in the country increased by 2,300 workers to 17,357,000 in January 2012 from December 2011.

The unemployment rate in Canada edged up 0.1 percentage points to 7.6 per cent, as more people searched for work.

Compared with 12 months earlier, employment rose by 129,000 (0.7 per cent), with most of the growth occurring in the first six months of this period.

The goods producing sectors increased modestly, with employment in construction declining by 1.1 per cent or (13,700) to 1,251,200 people, despite the incredibly mild weather.

Manufacturing rose 10,100, but the number of factory workers was down 2.5 per cent (-44,000) from the level of 12 months earlier.

There were fewer people employed in January in professional, scientific and technical services, down 45,000.

Despite this decline, employment in the industry remained 23,000 (1.8 per cent) above the level of 12 months earlier.

Employment in finance, insurance, real estate and leasing fell for the fifth consecutive month, down 23,000 in January.

This left employment in the industry 50,000 (-4.6 per cent) below its level of January 2011.

While employment in natural resources was little changed in January, it has posted the highest 12-month rate of growth of all industries, up 8.5 per cent or 28,000 since January 2011.

In B.C., employment in January edged down by 2,200 or -0.1 per cent to 2,291,700 from December.

Employment in Alberta was also little changed in January, increasing by 1,900 or .1 per cent to 2,135,100. However, the province posted the highest growth rate (3.9 per cent or 80,000) compared with 12 months earlier.

The unemployment rate, at 4.9 per cent, remained the lowest among all provinces.

JOC NEWS SERVICE

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