Tuesday, January 11, 2005

Jobless rate hits 3 1/2-year low

JOB creation picked up in December, pushing Canada’s unemployment rate to its lowest level in 3½ years. The rate fell from 7.3% to 7.0%, the lowest since May 2001.

December’s increase of some 34,000 jobs brought overall employment gains for 2004 as a whole to 228,000, a 1.4% increase from the previous year. This growth was slightly slower than the 1.8% increase in 2003.

All of the employment gains in 2004 were in full-time jobs. The total number of hours worked rose by 2.2%.

Full-time employment rose by 258,000, or 2.0%, in 2004, while part-time employment declined by 1.0%, or 30,000.

The strength in construction employment during the past several years continued in 2004 with an increase of 6.3%. This reflected robust activity related to building permits and housing starts, as well as low interest rates.

Employment also increased in professional, scientific and technical services; finance, insurance, real estate and leasing; and natural resources. There was slower growth in retail and wholesale trade, and in health care and social assistance.

Factory jobs

For the second year in a row, the manufacturing sector turned in a lacklustre performance. Factory employment was hit especially hard during in the second half of 2004, leaving it down 1.2% for the year.

Hard-pressed manufacturers faced a higher Canadian dollar, as well as substantial increases in the price of crude oil and other raw material inputs.

Only two provinces – Quebec and Alberta – experienced growth rates in jobs below the national average of 1.4% in 2004. Gains were only 1.0% in Quebec and 0.9% in Alberta.

For more information, contact Vincent Ferrao (613-951-4750), Labour Statistics Division.

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© 2004, 2005 Statistics Canada.