Canada’s economy continues to evolve, and one of the most notable recent trends is the rise in average weekly earnings. In April 2024, the sectoral average weekly earnings in Canada increased by 3.7% year-over-year, reaching $1,240. This follows a 4.1% rise in March. Understanding these changes as the economic landscape shifts is crucial for professionals and businesses alike.
Key Factors Behind the Earnings Increase
Several factors contributed to this rise in average weekly earnings, including:
Wage Changes: Adjustments in wages across various sectors have played a significant role.
Employment Composition: The types of jobs and their distribution have influenced the average earnings.
Hours Worked: Variations in the number of hours worked also impact weekly earnings.
Base-Year Effects: Comparisons to previous years’ earnings provide context for the increases.
April marked the third consecutive month where the number of employees receiving pay and benefits from their employers decreased, with a drop of 22,700 (-0.1%). Simultaneously, job vacancies fell by 32,000 (-5.3%) to 575,400.
Sector-Specific Employment Trends
The decline in payroll employment affected various sectors differently. Here’s a breakdown of the significant changes:
Decreases in Employment
- Manufacturing: Experienced a reduction of 6,000 jobs (-0.4%).
- Administrative and Support, Waste Management, and Remediation Services: Dropped by 5,200 jobs (-0.6%).
- Accommodation and Food Services: Saw a decrease of 4,800 jobs (-0.4%).
Increases in Employment
- Health Care and Social Assistance: Added 5,700 jobs (+0.2%).
- Management of Companies and Enterprises: Increased by 2,100 jobs (+1.8%).
Job Vacancies and Labour Demand
Job vacancies have been on a downward trend, continuing into April 2024. The number of job vacancies fell to its lowest since January 2021. Compared to April 2023, job vacancies were down by 223,400 (-28.0%). The job vacancy rate also decreased to 3.2%, down from 4.5% in April 2023.
Job Vacancies by Sector
- Manufacturing: Fell by 5,500 (-13.3%).
- Retail Trade: Decreased by 5,200 (-8.6%).
- Transportation and Warehousing: Reduced by 5,100 (-13.6%).
Average Weekly Earnings: A Closer Look
On a year-over-year basis, average weekly earnings rose by 3.7% to $1,240 in April 2024. This reflects various factors such as changes in wages, employment composition, and hours worked. The average weekly hours remained steady at 33.5 hours, showing a slight increase of 0.9% compared to the previous year.
Provincial Trends in Job Vacancies
Job vacancies saw declines across several provinces in April 2024. Notable changes include:
- Ontario: Decreased by 13,900 (-6.5%).
- Alberta: Fell by 11,500 (-14.7%).
- Manitoba: Dropped by 3,500 (-15.6%).
In contrast, British Columbia had the highest job vacancy rate at 4.0%, while also recording the lowest unemployment rate (5.0%) of any province in April.
Navigating the Economic Landscape
Canada’s rise in average weekly earnings to $1,240 is a significant indicator of the country’s evolving economic conditions. As professionals and businesses adjust to these changes, staying informed and adaptable is key. Understanding the factors driving these trends and the sector-specific variations can help navigate the shifting landscape.
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