OTTAWA
,
December 21, 2023
(press release)
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The number of employees receiving pay and benefits from their employer—measured as "payroll employment" in the Survey of Employment, Payrolls and Hours—decreased by 44,600 (-0.2%) in October, offsetting an increase of 36,200 (+0.2%) in September and following little variation in July and August. Meanwhile, job vacancies (633,400) were virtually unchanged from September, following five consecutive monthly decreases from May to September. Chart 1: Payroll employment drops in October In October, monthly decreases in payroll employment were recorded in 11 sectors, led by manufacturing (-6,900; -0.4%), construction (-6,700; -0.6%), retail trade (-6,200; -0.3%), accommodation and food services (-5,600; -0.4%), and management of companies and enterprises (-5,100; -4.1%). Monthly gains were recorded in health care and social assistance (+11,500; +0.5%), and public administration (+3,400; +0.3%). The remaining seven sectors were little changed. Chart 2: Overall payroll employment declines by 44,600 in October Payroll employment in manufacturing continues downward trend in October In October, payroll employment declines in manufacturing were principally recorded in transportation equipment manufacturing (-1,900; -1.0%), chemical manufacturing (-1,200; -1.3%) and fabricated metal product manufacturing (-1,000; -0.6%). Payroll employment losses in manufacturing were concentrated in Ontario (-6,100; -0.9%) and Newfoundland and Labrador (-2,100; -17.1%), and were partially offset by gains in Quebec (+1,400; +0.3%). Payroll employment declines in construction In October, declines were recorded in heavy and civil engineering construction (-2,600; -1.4%), specialty trade contractors (-2,400; -0.4%) and construction of buildings (-1,700; -0.6%). Retail trade declines for the second consecutive month While most other subsectors in retail trade recorded a decline or little change in October, payroll employment in general merchandise retailers rose by 1,100 (+0.4%), driven by an increase in warehouse clubs, supercentres and other general merchandise retailers (+1,400; +0.9%). Full-service restaurants and limited-service eating places drive October decline in accommodation and food services A decrease in the full-service restaurants and limited-service eating places industry (-7,000; -0.7%) was the main driver of payroll employment losses in the sector. October's decline constituted the fourth consecutive monthly decrease for this industry, bringing cumulative losses since July 2023 to 12,600 (-1.2%). Payroll employment in health care and social assistance continues an upward trend since September 2022 The monthly gain in October 2023 was largely concentrated in general medical and surgical hospitals (+7,300; +1.2%), child day-care services (+4,400; +2.5%) and nursing care facilities (+1,000; +0.4%). These gains were slightly offset by a decline in ambulatory health care services (-1,700; -0.3%). Payroll employment in public administration continues to increase Comparing employment trends from the Survey of Employment, Payrolls and Hours and the Labour Force Survey The LFS provides the timeliest picture of employment, based on a monthly household survey, and accounts for employees and self-employed workers across all sectors. Approximately two months after the release of the LFS, the SEPH provides information on payroll employment, including detailed information by industry, based on administrative data from the Canada Revenue Agency. The SEPH focuses on paid employees and excludes the agriculture sector. When comparing results from the LFS and SEPH, it is important to take differences in concepts and definitions into consideration. For example, SEPH payroll employment in October was little changed from June, while in the LFS, total employment was up by 115,000 over the period. Part of the difference between recent employment trends from the two surveys is accounted for by self-employment, which is included in the LFS, but not in the SEPH. Self-employment was up by 68,000 from June to October in the LFS and accounted for most (59.2%) of the increase in total employment over this period. Average weekly earnings increase year over year in October On a year-over-year basis, average weekly earnings grew by 4.0% in October, following a 3.9% increase in September. In general, growth in average weekly earnings can reflect a range of factors, including changes in wages, composition of employment and hours worked. In October, average weekly hours worked across all sectors were essentially unchanged compared with the previous month but were up 0.9% (to 33.5 hours) year over year. Job vacancies level off in October Total labour demand, which corresponds to the sum of filled and unfilled positions, declined (-87,500; -0.5%) in October 2023 from the peak reached in March 2023 (17,895,000), as the decrease in vacancies (-167,100; -20.9%) was larger than the corresponding increase in payroll employment (+79,600; +0.5%) over the period. The job vacancy rate—which corresponds to the number of vacant positions as a proportion of total labour demand—held steady at 3.6% in October, but was down from 4.5% observed in both March and April. Infographic 1: Job vacancies and job vacancy rate level off in October In October, decreases in the number of vacancies in manufacturing (-7,300; -16.1%) and management of companies and enterprises (-800; -24.4%) were offset by increases in finance and insurance (+6,600; +41.6%), public administration (+2,500; +18.1%) and utilities (+1,100; +48.9%). There were 1.9 unemployed persons for every job vacancy in October 2023, virtually unchanged from September, but up from 1.3 in March and April. In 2019, the year preceding the onset of the COVID-19 pandemic, the unemployment-to-job vacancy ratio fluctuated between 2.0 and 2.3. Fewer job vacancies in manufacturing The job vacancy rate in the sector was 2.4% in October, down from 2.8% in September and from 3.6% in May. Job vacancies hold steady in health care and social assistance for the second month in a row The job vacancy rate in the sector was 5.3% in October 2023, the highest rate across all sectors. It was little changed from September, but down from 6.3% in April. The decline in the job vacancy rate from April to October reflects the decrease in vacancies (-21,500; -14.2%) combined with the rise in payroll employment (+54,600; +2.4%) over the period. Job vacancies increase in finance and insurance The job vacancy rate in the sector increased to 2.6% in October, up from 1.8% in September but was virtually unchanged compared with July. Job vacancies fall in Ontario and rise in Quebec Meanwhile, job vacancies rose in Quebec (+7,700 to 151,100) in October, following two consecutive monthly decreases in August (-17,000; -9.4%) and September (-19,500; -12.0%). Job vacancies edged up in British Columbia (+7,100 to 108,600) in October but changed little in the other five provinces. In October, the job vacancy rate was highest in British Columbia (4.3%), while it was lowest in Newfoundland and Labrador (3.0%). Note to readers Payroll employment, as measured by the SEPH, refers to the number of employees receiving pay and benefits (employment income) during a given month. The survey excludes the self-employed, owners and partners of unincorporated businesses and professional practices, and employees in the agricultural sector. SEPH estimates are produced by integrating information from three sources: a census of approximately 1 million payroll deduction records provided by the Canada Revenue Agency; the Business Payrolls Survey, which collects data from a sample of 15,000 establishments; and administrative records of federal, provincial and territorial public administration employment, provided by these levels of government. Estimates of average weekly earnings and hours worked are based on a sample and are therefore subject to sampling variability. This analysis focuses on differences between estimates that are statistically significant at the 68% confidence level. Payroll employment estimates are based on a census of administrative records and are not subject to sampling variability. With each release of SEPH data, data for the preceding month are revised. Users are encouraged to use the most up-to-date data available for each month. Statistics Canada also produces employment estimates from its Labour Force Survey (LFS). The LFS is a monthly household survey, the main objective of which is to divide the working-age population into three mutually exclusive groups: the employed (including the self-employed), the unemployed and those not in the labour force. This survey is the official source for the unemployment rate, and it collects data on the sociodemographic characteristics of all those in the labour market. As a result of conceptual and methodological differences, estimates of changes from the SEPH and the LFS differ occasionally. However, the trends in the data are similar. For a more in-depth discussion of the conceptual differences between employment measures from the LFS and the SEPH, refer to Section 8 of the Guide to the Survey of Employment, Payrolls and Hours (Catalogue number72-203-G). Unless otherwise stated, this release presents seasonally adjusted data, which facilitate comparisons because the effects of seasonal variations are removed. For more information on seasonal adjustment, see Seasonally adjusted data – Frequently asked questions. Non-farm payroll employment data are for all hourly and salaried employees and for the "other employees" category, which includes piece-rate and commission-only employees. Unless otherwise specified, average weekly hours data are for hourly and salaried employees only and exclude businesses that could not be classified to a North American Industry Classification System (NAICS) code. All earnings data include overtime and exclude businesses that could not be classified to a NAICS code. Earnings data are based on gross taxable payroll before source deductions. Average weekly earnings are derived by dividing total weekly earnings by the number of employees. Job Vacancy and Wage Survey Preliminary monthly estimates are produced for job vacancies, job vacancy rates and payroll employment using available responses from business locations sampled in the corresponding reference month. The reference period for the JVWS is the first day of the respective month. These preliminary monthly estimates are revised and finalized when the corresponding quarterly estimates are released or shortly thereafter. Users are encouraged to use the most up-to-date data available for each month. Unless otherwise stated, this release presents seasonally adjusted data, which facilitate comparisons because the effects of seasonal variations are removed. For more information on seasonal adjustment, see Seasonally adjusted data – Frequently asked questions. While JVWS employment is calibrated to the SEPH, SEPH payroll employment and JVWS preliminary monthly employment figures may differ because of calibration grouping and differences in scope and reference period. The JVWS also provides comprehensive quarterly data on job vacancies by industrial sector and detailed occupation for Canada and the provinces, territories and economic regions; offered hourly wages; and job vacancy characteristics. More information about the concepts and use of data from the JVWS is available in the Guide to the Job Vacancy and Wage Survey (Catalogue number75-514-G). Real-time data tables Real-time data tables 14-10-0331-01 and 14-10-0332-01 will be updated on January 8, 2024. Next release Products The product "Earnings and payroll employment in brief: Interactive app" (14200001) is now available. This interactive data visualization application provides a comprehensive picture of the Canadian labour market using the most recent data from the Survey of Employment, Payrolls and Hours. The estimates are seasonally adjusted and available by province and largest industrial sector. Historical estimates that go back 10 years are also included. The interactive application allows users to explore and personalize the information presented quickly and easily. Combine multiple provinces and industrial sectors to create your own labour market domains of interest. Contact information Industry Intelligence Editor's Note: This press release omits select charts and/or marketing language for editorial clarity. Click here to view the full report.
Payroll employment in manufacturing decreased by 6,900 (-0.4%) in October, continuing a downward trend that began in July, bringing the overall loss since then to 16,700 (-1.1%). The decrease in October coincided with a 2.8% decline in manufacturing sales that month, the third consecutive monthly decline, according to the latest data from the Monthly Survey of Manufacturing.
Payroll employment in construction fell by 6,700 (-0.6%) in October, following a gain of 3,600 (+0.3%) in September and a decrease of 13,100 (-1.1%) in August. In October, payroll employment in construction was down by 16,200 from its July peak and was virtually unchanged from March.
In October, there were 6,200 (-0.3%) fewer payroll employees working in retail trade. The monthly decline was mostly distributed between food and beverage retailers (-3,100; -0.6%) and sporting goods, hobby, musical instrument, book, and miscellaneous retailers (-2,700; -1.3%).
Payroll employment in accommodation and food services declined by 5,600 (-0.4%) in October.
In October, payroll employment in health care and social assistance (+11,500; +0.5%) increased for the third consecutive month, continuing an upward trend since September 2022.
In October, payroll employment in public administration (+3,400; +0.3%) increased for the fourth consecutive month, bringing the cumulative gain in the sector to 27,200 (+2.1%) since July. The largest monthly gains in October were recorded in provincial and territorial public administration (+4,800; +1.4%) and federal government public administration (+1,300; +0.3%).
Statistics Canada has two monthly surveys that measure employment levels and trends: the Survey of Employment, Payrolls and Hours (SEPH) and the Labour Force Survey (LFS).
Month over month, average weekly earnings ($1,222) were little changed for a third consecutive month in October. Construction (+1.4% to $1,522) and other services (except public administration) (+1.5% to $1,053) recorded month-over-month gains in average weekly earnings, while the remaining sectors recorded little change.
In October, overall job vacancies (633,400) were virtually unchanged from September, following five consecutive monthly decreases from May to September. The number of unfilled positions in October were at their lowest level since February 2021 (619,200).
Job vacancies in manufacturing fell by 7,300 (-16.1%) to 38,200 in October 2023, following little change in September and three consecutive monthly declines from June to August.
Job vacancies in health care and social assistance (130,200) were little changed in October for the second straight month, but down by 21,500 (-14.2%) from April, when the number of vacancies (151,600) was virtually unchanged from the record high reached in July 2022.
The number of vacant positions in finance and insurance rose by 6,600 (+41.6%) to 22,300 in October, offsetting the net decrease recorded from July to September (-6,100; -27.9%).
In Ontario, the number of vacancies fell by 9,900 (-4.5%) to 211,600 in October, following a monthly decrease (-21,100; -8.7%) in September and little change in August. Saskatchewan (-5,000 to 19,000) and Prince Edward Island (-800 to 2,400) also reported decreases in job vacancies in October.
Survey of Employment, Payrolls and Hours
The key objective of the Survey of Employment, Payrolls and Hours (SEPH) is to provide a monthly portrait of the level of earnings, employment and hours worked, by detailed industry, at the national, provincial and territorial levels.
Job Vacancy and Wage Survey (JVWS) collection is done on a quarterly basis. The quarterly sample of business locations is allocated to the three collection months of the quarter, approximately balanced by province and by industrial sector across each of the three months. This allows both quarterly and monthly estimates to be produced.
Tables 14-10-0357-01 and 14-10-0358-01 have now been archived.
November 2023 data for the SEPH and JVWS will be released on January 25, 2024.
More information about the concepts and use of the Survey of Employment, Payrolls and Hours is available in the Guide to the Survey of Employment, Payrolls and Hours (Catalogue number72-203-G).
For more information, or to enquire about the concepts, methods or data quality of this release, contact us (toll-free 1-800-263-1136; 514-283-8300; infostats@statcan.gc.ca) or Media Relations (statcan.mediahotline-ligneinfomedias.statcan@statcan.gc.ca).
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