Employment growth continued in February

Employment growth continued in February with gains estimated at 43,000, pushing Canada's employment rate to a new record high (63.9%). For the second straight month, the unemployment rate held steady at its 33-year low of 5.8%. Employment growth over the last 12 months stands at 361,000 (+2.2%).

Similar to January, employment growth in February was entirely attributable to an increase in full time. Over the past 12 months, full-time work has grown at three times the pace of part-time employment.

Employment growth in February was mainly in construction; public administration; and professional, scientific and technical services. These gains were partly offset by declines in manufacturing and natural resources.

In February, for the second consecutive month, strength in employment came from private sector employees. Overall employment growth over the past 12 months, however, has been the result of gains in the public sector.

Almost all of February's employment growth was realized in Ontario. Large gains in construction; business, building and other support services; and public administration were partly offset by the continued decline in manufacturing employment.

Wage growth remained strong in February, with a year-over-year increase in average hourly wages estimated at 4.9%. This was well above the most recent increase of 2.2% in consumer prices. February also marked the seventh consecutive month with a year-over-year increase in average hourly wages at, or above, 4%.

Strong service sector growth in February

Following little change in January, service sector employment grew by almost 56,000 in February. Public administration saw employment gains of an estimated 16,000 in February, for total growth of 10.5% (+87,000) over the previous 12 months. Employment in professional, scientific and technical services also increased by 16,000 and has grown by 7.0% (+78,000) since February 2007.

Construction up, manufacturing and natural resources down

In February, employment in construction increased by an estimated 21,000, all in Ontario. Nationally, employment in this industry is up 8.5% (+94,000) from 12 months ago.

Manufacturing employment declined by 24,000 in February, bringing total losses over the last 12 months to 106,000 (-5.1%). Manufacturing now represents 11.6% of total employment, a record low and far from the 15.0% share observed at the end of 2002, the start of the most recent decline.

Employment in natural resources was down in February (-9,000). Over the previous 12 months, this industry declined by 4.2%, with most of the losses in support activities for the mining, oil and gas sector.

Ontario labour market strengthens in February

Ontario recorded strong employment growth in February (+46,000), nearly all in full-time work. These latest gains pushed the overall unemployment rate in the province down 0.2 percentage points to 6.1%. Over the last 12 months, employment growth in Ontario stands at 2.0%, just slightly below the national average (+2.2%).

Although manufacturing in Ontario continued to lose workers in February (-20,000), these declines were more than offset by strength in construction (+31,000); business, building and other support services (+20,000), as well as public administration (+11,000).

While employment in Quebec was little changed in February, over the last 12 months employment growth (+2.4% or 92,000) was above the national average. Despite weakness in manufacturing, employment in the province has grown steadily since February 2007 in other industries of the goods sector and in services. In February, the unemployment rate, at 7.0%, continued to hover around its 33-year low.

Labour market remains robust in Western Canada

In February, employment in Saskatchewan increased by 3,300, bringing total gains since last September, when the current upward trend began, to an estimated 12,000 (+2.5%). The unemployment rate in February, at 4.1%, was among the lowest in the country.

Although little changed in February, employment in Alberta was up 3.0% (+58,000) from a year earlier, while the unemployment rate, at 3.5%, remained below that of all other provinces. Meanwhile, the province's participation rate (the share of the working-age population that is working or looking for work) remained at a record high of 74.5% for the second consecutive month, the highest in Canada.

As with Alberta, employment in British Columbia was unchanged in February. Since February 2007, however, employment has increased by 2.3% (+52,000), driven by strength in construction. This growth has been somewhat tempered by a decline in manufacturing over this period, most notably in wood products. At 4.1% in February, the unemployment rate was unchanged from a month earlier and remains among the lowest in Canada.

New Brunswick's labour market continues to grow

New Brunswick was the only province in Atlantic Canada to experience a notable employment gain in February (+2,700). At the same time, the participation rate reached a record high of 65.0%. February's increase in employment extends an upward trend that began in October 2006, with gains over this period totalling an estimated 17,000 (+4.8%). Nearly half of this increase has been in the past 12 months, all in the service sector, most notably in professional, scientific and technical services.

Employment in Nova Scotia fell by an estimated 3,800 in February and the unemployment rate edged up to 7.7%. This decline leaves overall employment in the province at about the same level as 12 months earlier.

Note: The Labour Force Survey (LFS) estimates are based on a sample, and are therefore subject to sampling variability. Estimates for smaller geographic areas or industries will have more variability. For an explanation of sampling variability of estimates, and how to use standard errors to assess this variability, consult the "Data quality" section of the publication Labour Force Information (71-001-XWE, free).

Available on CANSIM: tables 282-0001 to 282-0042, 282-0047 to 282-0064 and 282-0069 to 282-0099.

Definitions, data sources and methods: survey number 3701.

A more detailed summary, Labour Force Information (71-001-XWE, free) is now available online for the week ending February 16. From the Publications module of our website, under Free internet publications, choose Labour. LAN and bulk prices are available on request. The CD-ROM Labour Force Historical Review, 2007 (71F0004XCB, $209) is now available.

Data tables are also now available online. From the By Subject module of our website, choose Labour.

The next release of the Labour Force Survey will be on April 4.

For general information or to order data, contact Client Services (toll-free 1-866-873-8788; 613-951-4090; labour@statcan.ca). To enquire about the concepts, methods or data quality of this release, contact Jason Gilmore (613-951-7118; jason.gilmore@statcan.ca) or Jeannine Usalcas (613-951-4720; jeannine.usalcas@statcan.ca), Labour Statistics Division.