Ontario Construction News staff writer
According to Statistics Canada’s latest labour report, Canada’s construction sector saw a sharp decline in employment in May, with jobs falling 7.2%, even as total employment across the country remained largely unchanged.
Total employment in May increased by just 8,800 jobs — effectively flat growth — while the unemployment rate edged up 0.1 percentage points to 7.0%, the highest level since 2016.
The drop in construction jobs contributed to a mixed employment picture. While sectors like wholesale and retail trade (+43,000 jobs) and information, culture and recreation (+19,000 jobs) showed gains, other areas such as public administration (-32,000 jobs), accommodation and food services (-16,000 jobs), transportation and warehousing (-16,000 jobs), and business, building and other support services (-15,000 jobs) experienced declines.
Employment rose notably among core-aged women (ages 25 to 54), up 42,000 (+0.6%), while core-aged men saw a 31,000 (-0.4%) decline in employment. Youth and workers aged 55 and older experienced little change in employment levels.
Youth unemployment remains a challenge as the rate for those aged 15 to 24 held steady at 14.2%, with the unemployment rate among returning students (those attending school full-time and returning in the fall) increasing to 20.1%, up 3.2 percentage points from a year earlier. This reflects ongoing difficulties for youth entering the summer job market.
Regionally, employment increased in British Columbia, Nova Scotia, and New Brunswick, while Quebec, Manitoba, and Prince Edward Island saw declines. Ontario’s employment remained virtually unchanged in May after two months of job losses.
Average hourly wages increased 3.4% year-over-year, reaching $36.14, matching April’s growth.
The labour market shows signs of slowing, with virtually no employment growth since January following strong gains late last year. Meanwhile, the average duration of unemployment rose to 21.8 weeks, reflecting greater challenges in finding work.