Payroll employment, earnings and hours

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December 2011 (preliminary) (Previous release)

In December, average weekly earnings of non-farm payroll employees were $888.26, up 0.7% from the previous month. On a year-over-year basis, earnings rose 2.4%.

Year-to-year change in average weekly hours and average weekly earnings

Year-to-year change in average weekly hours and average weekly earnings

Chart description: Year-to-year change in average weekly hours and average weekly earnings

The 2.4% increase in average weekly earnings during the 12 months to December reflects a number of factors, such as wage growth and changes in the composition of employment by industry, occupation and level of job experience.

Average hours worked per week can also contribute to changes in earnings. The year-over-year increase in weekly earnings was tempered by a decline in average hours worked per week. In December, average hours worked per week were 32.8, down from 32.9 hours in the previous month and down from 33.0 hours in December 2010.

Note to readers

In March of every year, as part of the regularly scheduled year-end review of the Survey of Employment, Payrolls and Hours (SEPH), seasonally adjusted data are revised using the latest seasonal factors.

In addition, as part of the annual review, there will be revisions to a small number of industries for the 2001 to 2011 period. These revisions will affect both unadjusted and seasonally adjusted data.

As a result, all data will be revised historically back to 2001. On March 30, these revised data will be available on CANSIM (tables 281-0023 to 281-0039 and 281-0041 to 281-0049).

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 groups: 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.

Non-farm payroll employment data are for all hourly and salaried employees, as well as the "other employees" category, which includes piece-rate and commission-only employees.

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 code.

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

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

Average weekly earnings by sector

Year-over-year growth in average weekly earnings exceeded the national average of 2.4% in four of Canada's largest industrial sectors: retail trade, educational services, construction and manufacturing.

Year-to-year change in average weekly earnings in the 10 largest sectors, December 2010 to December 2011

Year-to-year change in average weekly earnings in the 10 largest sectors, December 2010 to December 2011

Chart description: Year-to-year change in average weekly earnings in the 10 largest sectors, December 2010 to December 2011

In retail trade, average weekly earnings were up 4.6% in the 12 months to December to $527.61. The growth was widespread across retail industries.

In educational services, average weekly earnings rose 4.0% to $961.08. Growth was notable in both universities and colleges.

Average weekly earnings in construction increased 3.3% to $1,122.96, with notable growth within heavy and civil engineering construction.

In December, average earnings in manufacturing were up 2.5% from December 2010 to $1,000.55. Within this sector, there was notable year-over-year earnings growth in printing and related support activities; transportation equipment manufacturing; computer and electronic product manufacturing; and chemical manufacturing.

Growth in earnings also surpassed the national average in some smaller sectors. From December 2010 to December 2011, earnings increased in the two highest-paying industries: utilities, where they increased 8.7% to $1,756.08; and mining, quarrying and oil and gas extraction, where they rose 8.5% to $1,796.68.

Average weekly earnings in health care and social assistance declined 1.9% to $788.68 in the 12 months to December. Earnings in this sector have fallen for three consecutive months, largely driven by earnings declines in hospitals.

Average weekly earnings rose in every province

Average weekly earnings rose in every province in the 12 months to December, led by growth in Newfoundland and Labrador, Alberta and Saskatchewan. The lowest rate of growth was in Nova Scotia.

Year-over-year growth in average weekly earnings by province, December 2010 to December 2011

Year-over-year growth in average weekly earnings by province, December 2010 to December 2011

Chart description: Year-over-year growth in average weekly earnings by province, December 2010 to December 2011

In Newfoundland and Labrador, average weekly earnings were up 5.8% to $907.26 in December from 12 months earlier. Earnings in this province have been higher than the national average since September 2011.

In Alberta, average weekly earnings increased 5.2% to $1,064.80. Alberta continued to record the highest level of earnings among the provinces.

In Saskatchewan, average weekly earnings were up 3.3% to $893.21 in the 12 months to December. Earnings in the province have exceeded the national average since August 2011.

The lowest year-over-year growth occurred in Nova Scotia, where average weekly earnings were up 0.5% to $783.17.

Non-farm payroll employment by sector

From November to December, non-farm payroll employment increased by 3,000. There were modest gains in 11 sectors, led by transportation and warehousing, but they were mostly offset by losses in 9 other sectors. On a year-over-year basis, the number of non-farm payroll employees rose 1.4% (+206,200).

The highest year-over-year rates of growth in payroll employment were in mining, quarrying and oil and gas extraction (+7.7%); utilities (+4.5%); construction (+3.6%); and accommodation and food services (+3.0%).

Available without charge in CANSIM: tables 281-0023 to 281-0039 and 281-0041 to 281-0049.

Definitions, data sources and methods: survey number 2612.

A data table is available from the Key resource module of our website under Summary tables.

Detailed industry data, data by size of enterprise based on employment, and other labour market indicators are available in the monthly publication Employment, Earnings and Hours, Vol. 89, no. 12 (72-002-X, free). From the Key resource module of our website, choose Publications.

Data on payroll employment, earnings and hours for January will be released on March 30.

For more information, contact Statistics Canada's National Contact Centre (toll-free 1-800-263-1136; 613-951-8116; infostats@statcan.gc.ca), Communications Division.

To enquire about the concepts, methods or data quality of this release, contact Jason Gilmore (613-951-7118), Labour Statistics Division.