Payroll employment, earnings and hours

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November 2010 (preliminary) (Previous release)

Between November 2009 and November 2010, average weekly earnings of non-farm payroll employees rose 4.4% to $865.17.

The 12-month change in average weekly earnings

Note to readers

The Survey of Employment, Payrolls and Hours (SEPH) is a business census of non-farm payroll employees. Its key objective is to provide a monthly portrait of the level of earnings, the number of jobs and hours worked by detailed industry at the national, provincial and territorial level.

Statistics Canada also produces employment estimates from its monthly Labour Force Survey (LFS). The LFS is a household survey whose main objective is to divide the working-age population into three mutually exclusive classifications: the employed (including the self-employed), unemployed and not in the labour force. This survey is the official source for the unemployment rate and collects data on the socio-demographic characteristics of all those in the labour market.

As a result of conceptual and methodological differences, estimates of changes from SEPH and LFS do differ from time to time. However, the trends in the data are quite similar.

Unless otherwise stated, this release presents seasonally adjusted data, which facilitates comparisons by removing the effects of seasonal variations.

All earnings data include overtime pay and exclude businesses which could not be classified to a North American Industrial Classification System code.

Average weekly earnings are derived by dividing total weekly earnings by the number of employees.

Changes in average earnings can be influenced by a number of factors. Changes in the level of earnings, the number of payroll employees, and the number of hours worked can have an impact. Other factors could include compositional changes over time, such as changes in the proportions of full- and part-time work; proportions of casual, senior and junior employees; the occupational distribution within and across industries; and in the distribution of employment between industries. Such effects may apply differently within different provinces and territories, and over time.

Because earnings can be influenced by any number of these factors, it is sometimes the case that earnings are moving in one direction and payroll employment is going the opposite direction (either at the aggregate level, by sector or industry).

Some of the growth in weekly earnings between November 2009 and November 2010 was attributable to a 1.3% increase in the average number of hours worked per week. This follows a decline of 1.6% in average hours from November 2008 to November 2009. The remainder of the year-over-year wage increase in November 2010 reflects a number of other factors, including wage growth, changes in the composition of employment by industry, changes in occupations within industries and job experience.

Average weekly earnings increased in every province. Growth was above the national average in Saskatchewan, Prince Edward Island, Alberta and Nova Scotia. New Brunswick had the slowest growth.

Average weekly earnings by industry

Among the 10 industrial sectors with more than 700,000 employees, growth in average weekly earnings between November 2009 and November 2010 was faster than the national average of 4.4% in educational services; manufacturing; accommodation and food services; professional, scientific and technical services; and wholesale trade. The slowest growth in earnings occurred in health care and social assistance as well as administrative and support services.

Average weekly earnings in educational services increased by 6.0% in the 12 months to November. The earnings growth over this period was strongest in primary and secondary schools and universities.

Weekly earnings increased 2.3% in the 12 months to November in the administrative and support services sector. This was the slowest increase among the 10 largest industrial sectors. However, there were notable differences among certain industries within this sector.

The growth in average weekly earnings during the 12 months was strong in some smaller sectors. For example, earnings in forestry, logging and support increased by 11.9%, the fastest among all sectors. The second-highest earnings growth was in mining, quarrying and oil and gas extraction (+10.7%). Both sectors have shown strong earnings growth in recent months.

Arts, entertainment and recreation sector earnings have also been on an upward trend. From November 2009 to November 2010, earnings in this sector rose by 10.2%. Earnings growth was strong in all the arts, entertainment and recreation industries.

The 12-month change in average weekly earnings in the 10 largest sectors, November 2009 to November 2010

Non-farm payroll employment by industry

Non-farm payroll employment edged up 0.1% (+7,700) from October to November, the sixth consecutive month of job gains. Between November 2009 and November 2010, the number of payroll employees increased by 1.8% (+263,500).

Public administration payroll jobs rose by 0.4% (+4,500) in November, mainly the result of increases in provincial and territorial public administration. In the 12 months to November, the number of payroll jobs in public administration increased by 0.2% (+1,900).

In manufacturing, payroll employment increased by 0.3% (+4,800) from October to November, erasing a decline of a similar magnitude the month before. Most of November's manufacturing gains were in food; electrical equipment, appliance and components; and primary metals. In the 12 months to November, total payroll jobs in manufacturing increased by 1.5% (+21,700).

In accommodation and food services, the number of payroll jobs decreased by 0.3% (-2,800) from October to November, with most of the decline in limited service eating places. The number of employees in accommodation and food services was down 0.5% (-5,100) compared with November 2009.

The number of payroll jobs in administrative and support services fell by 0.3% (-2,400) in November. Gains in business support services were more than offset by small losses spread across three industries: travel arrangement and reservation services; investigation and security services; and services to buildings and dwellings. During the previous 12 months, the number of payroll employees in administrative and support services increased by 2.2% (+15,700).

Hours worked and average hours worked by hourly and salaried employees

Total hours worked by hourly and salaried employees were virtually unchanged in November compared with October. In the 12 months to November, total hours increased by 2.5%.

Average weekly hours worked by hourly and salaried employees amounted to 33.0 hours in November, up from both the previous month (32.9 hours or +0.3%) and November 2009 (32.6 hours or +1.3%).

Available on CANSIM: tables 281-0023 to 281-0039 and 281-0041 to 281-0046.

Definitions, data sources and methods: survey number 2612.

Detailed industry data, data by size of enterprise based on employment, and other labour market indicators will be available soon in the monthly publication Employment, Earnings and Hours (72-002-X, free).

Data on payroll employment, earnings and hours for December will be released on February 24.

For more information, or to order data, contact Client Services (toll-free 1-866-873-8788; 613-951-4090; labour@statcan.gc.ca). To enquire about revisions, concepts, methods or data quality of this release, contact Jason Gilmore (613-951-7118), Labour Statistics Division.