Labour Force Survey, August 2006

The unemployment rate in Canada rose slightly in August, up 0.1% to 6.5 %, still among the lowest in 30 years. The pause in employment growth over the last three months follows a period of very strong gains. So far this year, employment is up 194,000 (+1.2%), due entirely to increases in full time employment.

The rise in unemployment is due almost entirely to the reduction in part-time jobs, especially for adult women and youth aged 15 to 24 years. August continued the trend of having increases in Full-Time work, but these increases were not enough to offset the rise in unemployment.

Robust growth in full-time positions is indicative of the underlying strength in the labour market. Full-time jobs now account for 82.2 per cent of total employment in Canada, the highest proportion in over fifteen years, noted Eric Dubé, an economist at National Bank Financial.

Self-employment increased in August as well (+27,000), mainly due to gains in construction, trade, as well as business, building and other support services.

The national average of hourly wages was up 3.7% from August of last year, remaining above the most recent year-over-year gain of 2.4% in the Consumer Price Index. Most notably, Hourly earnings in Alberta were up 8.3% over the previous 12 months.

Alberta has been responsible for 78,000 or 40% of all employment added in Canada since the start of 2006, eclipsing even Ontario's gain (+68,000 and 35%) during the first eight months of the year. This share is considerable, especially coming from a province that accounts for only 10% of the country's working-age population.

The August Labour Force Survey shows that while part-time jobs are being eliminated, the potential for full-time work, especially in Alberta and in the Construction industry, is still high.

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