The capital region’s unemployment rate inched up to 4.7 per cent in May from 4.5 per cent the previous month, as provincial and federal rates also rose slightly.
Greater Victoria’s labour force, representing people working and seeking work, rose to 250,800 in May from 244,000 in April, Statistics Canada said in its monthly labour force survey.
Actual employment moved up to 239,200 from 232,900.
Within the capital region, public administration jobs rose to 31,000 last month from 24,200 in May 2023. Health care and social services jobs moved up to 35,900 from 34,100 over the same period.
Educational services jobs climbed to 23,400 from 19,100 and wholesale and retail trade jobs increased to 29,600 from 25,500.
The accommodation and food services sector saw a small year-over-year drop, with 18,200 jobs in May, down from 18,400. Construction jobs also declined to 18,800 from 20,200 in May of last year.
B.C.’s unemployment rate came in at 5.6 per cent in May compared with five per cent in April
Brenda Bailey, Minister of Jobs, Economic Development and Innovation, noted that year-over-year, 79,200 new jobs were created.
The national unemployment rate continued its upward climb in May, rising slightly to 6.2 per cent as opportunities became harder to find for prospective job seekers.
Statistics Canada’s survey showed the economy added 27,000 jobs last month — too modest a gain to keep the unemployment rate from rising by a tenth of a percentage point.
The report, which came in largely as forecasters had expected, suggests the Canadian job market continues to soften as high interest rates weigh on consumers and businesses.
“It didn’t take much digging to unearth the fact that this report is considerably softer than the headline, as all of the gains were in part-time jobs, in one province (Ontario), and the unemployment rate ticked up to 6.2 per cent, as expected,” wrote BMO chief economist Douglas Porter in a client note.
Of those who were unemployed in April, just under a quarter found work the next month, the report said. That’s below the pre-pandemic average of 31.5 per cent for the same months in 2017, 2018 and 2019.
“A lower proportion of unemployed people transitioning into employment may indicate that people are facing greater difficulties finding work in the current labour market,” the report said.
More Canadians are also finding themselves working part-time because they don’t have better options.
Statistics Canada says the involuntary part-time rate, which refers to the proportion of part-time workers who could not find full-time work or worked part-time because of weak business conditions, was 18.2 per cent in May. That’s up from 15.4 per cent a year prior.
Meanwhile, U.S. employers added a strong 272,000 jobs in May, accelerating from April and a sign that companies are still confident enough in the economy to keep hiring, despite persistently high interest rates.
The data from both Canada and the U.S. come two days after the Bank of Canada opted to lower interest rates for the first time in four years, citing easing inflation and the weakening economy.
The central bank lowered its key interest rate by a quarter of a percentage point to 4.75 per cent and signalled that more rate cuts would be on the way, so long as inflation continues to slow.
“Taken together, this mixed bag doesn’t really move the needle on the Bank of Canada rate-o-meter. It’s still consistent with growing slack in the economy, albeit with sticky wages,” Porter wrote.
Wage growth remained strong in May, as average hourly wages rose 5.1 per cent from a year ago, reaching $34.94.
Employment was up in health care and social assistance, finance, insurance, real estate, rental and leasing, business, building and other support services as well as accommodation and food services.
Meanwhile, employment fell in construction, transportation and warehousing and utilities.
The Canadian Press
