Labour markets largely held steady in August, according to the latest payroll data from Statistics Canada.
On Thursday, the national statistical agency reported that payroll employment ticked slightly higher in August, rising by 13,500 workers, after increasing by 39,500 in July.
On an annual basis, payroll employment was up 176,700 in August, up 1.0%, StatCan said.
The gains in August payrolls came primarily in the health-care sector (up 12,000), along with public administration and wholesale trade. They were partly offset by declines in six sectors, including the recreation, waste management, and construction sectors.
Alongside the modest gain in payrolls, job vacancies were “little changed” in August too, StatCan said, as increases in four sectors were largely offset by declines in three sectors.
Job vacancies were down by 176,300, or 25.4%, on a year-over-year basis in August.
Total labour demand — the combination of filled and open jobs — held steady in the month, StatCan said, but it was down by 27,600 on an annual basis.
The ratio of unemployed workers to open jobs continued to rise in August, marking the sixth straight monthly increase in the unemployment-to-job vacancy ratio. StatCan noted that there were 2.8 unemployed workers for every job vacancy in August, up from 2.7 in July.
In a research note, National Bank Financial Inc. (NBF) suggested that the data signals largely stagnant labour market conditions — a key input for the Bank of Canada’s monetary policy decisions.
“As new job vacancy data indicate, the labour demand needed to sustain stronger hiring simply does not exist,” NBF said.
StatCan also reported that average weekly earnings increased in August. Average weekly earnings were up 4.6% in August, up from a 4.3% rise in July.