Job vacancies, three-month average ending in June 2014
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Released: 2014-09-16
Canadian businesses reported 235,000 job vacancies in June, up 15,000 compared with 12 months earlier. For every job vacancy, there were 5.8 unemployed people, down slightly from 6.2 in June 2013, the result of more job vacancies.
Unemployment-to-job vacancies ratio declined in Ontario and British Columbia
In Ontario, there were 7.1 unemployed people for every job vacancy, down from 8.4 in June 2013, as there were more job vacancies in the province.
Chart 1
Unemployment-to-job vacancies ratio, all unemployed, by province, three-month average, June 2013 and June 2014
The ratio in British Columbia declined from 5.1 to 4.3 in the 12 months to June. The ratio declined as a result of fewer people being unemployed in the province, as the number of job vacancies was little changed.
In the remaining provinces, the unemployment-to-job vacancy ratios were little changed compared with June 2013.
Ratio by industrial sector
Analysis of the ratio of unemployed people to job vacancies by industrial sector is limited to those who last worked within the past 12 months, as unemployment data by sector are only available for these individuals.
Among the largest industrial sectors, administrative and support services had the highest number of unemployed people for every vacancy at 7.8 in June, up from 5.0 in June 2013. The increase in the ratio was all the result of fewer job vacancies in this sector.
Chart 2
Unemployment-to-job vacancies ratio, by largest industrial sector, unemployed people who last worked within the past 12 months, three-month average, June 2013 and June 2014
The unemployment-to-job vacancies ratio in health care and social assistance grew from 1.3 to 1.7 in the 12 months to June. Despite the increase, it remains the lowest ratio of all industrial sectors. The increase in the ratio was the result of both fewer job vacancies and more unemployed people in this sector.
In wholesale trade the ratio was 2.6 in June, down from 4.4 a year earlier, as the number of unemployed people who last worked in this sector declined.
Among the smaller industrial sectors, 'other services' (such as repair and maintenance or personal and laundry service) was the only sector with a notable decline. Over the 12-month period, the ratio in this sector fell from 3.3 to 2.3.
There was little change in the ratio among all other industrial sectors.
Job vacancy rates
Data from this survey are also used to calculate the job vacancy rate. It is defined as the number of vacant positions divided by total labour demand, that is, occupied positions plus vacant positions. It corresponds to the share of jobs that are unfilled out of all payroll jobs available. Higher job vacancy rates are often associated with periods of economic growth, while lower rates may be associated with periods of slower growth or economic contraction.
In June, the national job vacancy rate among Canadian businesses was 1.6%, little changed compared with the rate of 1.5% recorded 12 months earlier.
Chart 3
Job vacancy rate, by province, three-month average, June 2013 and June 2014
Provincially, only Ontario saw a notable change in its job vacancy rate in the 12 months to June. Over this period, the rate in this province increased from 1.2% to 1.4%.
Job vacancy rates by sector
Compared with 12 months earlier, the job vacancy rate fell in two industrial sectors, grew in three and was little changed in the others.
Health care and social assistance had a rate of 1.6% in June, down from 1.8% a year earlier. The sector had 28,000 vacancies in June.
The job vacancy rate in administrative and support services declined from 1.7% to 1.0% in the 12 months to June, with 7,900 job vacancies in June 2014.
In accommodation and food services, the job vacancy rate grew from 2.3% to 3.0% over the 12-month period, and the sector had 37,000 job vacancies in June. The rate also grew in finance and insurance as well as in regional and Aboriginal public administration.
Note to readers
Estimates of job vacancies are collected through the monthly Business Payrolls Survey (BPS). Starting with the January 2011 reference month, two questions were added to the BPS, which is the survey portion of the Survey of Employment, Payrolls and Hours. These questions were: Did you have any vacant positions on the last business day of the month, and how many?
The target population is similar to the BPS and comprises all employers in Canada, except those primarily involved in: agriculture; fishing and trapping; private household services; religious organizations; and the military personnel of the defense services. Unlike the BPS, federal, provincial and territorial public administration subsectors are also excluded.
With each release, estimates for the current reference month are subject to revision. Estimates have been revised for the previous month. Users are encouraged to request and use the most up-to-date estimates for each month.
Data quality
Job vacancy and unemployment estimates are based on samples, and are therefore subject to sampling variability. Estimates for geographic areas and industries with smaller numbers of vacancies or smaller unemployed populations are subject to greater sampling variability.
To address sampling variability, only differences between estimates that are statistically significant at the 68% confidence interval are discussed in this analysis.
Job vacancy, labour demand and unemployment estimates and their accompanying rates are not seasonally adjusted and should only be compared on a year-over-year basis. Given this is a new data series, trends are not yet available and, therefore, data should be interpreted with caution.
All estimates are based on three-month moving averages. For example, estimates for the current month are based on an average of the estimates from the current month and the previous two months.
Definitions
Job vacancy / vacant position: A position is considered "vacant" if it meets all three of the following conditions: a specific position exists; work could start within 30 days; and the employer is actively seeking employees from outside the organization to fill the position.
Labour demand: Total labour demand is the sum of met (total payroll employment) and unmet (vacant positions) labour demand.
Largest industrial sectors: The sectors with the largest levels of payroll employment for which we have publishable job vacancy data.
Job vacancy rate: The number of vacant positions divided by total labour demand, that is, occupied positions plus vacant positions.
Unemployment-to-job vacancies ratios
All unemployed: The unemployment-to-job vacancies ratio for all unemployed is calculated by dividing the total number of unemployed, regardless of their previous work experience, using Labour Force Survey (LFS) data, by the number of vacant positions. This ratio reflects how many unemployed individuals are available for each vacant position and is a measure of the overall labour market tightness.
By sector: For each sector, the ratio is calculated by dividing the number of unemployed who last worked in that sector in the previous 12 months, using LFS data, by the number of vacant positions in the same sector. This excludes new entrants to the labour market as well as unemployed people who had not worked during the previous 12 months. Unemployment data by sector are known only for those who worked within the previous 12 months.
Use of estimates for the last sector worked does not imply that these unemployed individuals continued to look for work in that sector. This ratio reflects how many unemployed individuals who last worked in that sector are available for each vacant position in the sector. It is a measure of the labour market tightness within that sector.
Job vacancies data for July will be released on October 21.
Contact information
For more information, contact us (toll-free 1-800-263-1136; 514-283-8300; infostats@statcan.gc.ca).
To enquire about the concepts, methods or data quality of this release, contact Emmanuelle Bourbeau (613-951-3007; emmanuelle.bourbeau@statcan.gc.ca), Labour Statistics Division.
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