Labour Market Briefing– London Economic Region in August 2016

By Emilian Siman

There was a slight change in the labour market in the London Economic Region in August of 2016, compared to the previous month. Overall, the labour force grew by about 200 people in August relative to July of 2016 but, when compared to last year at the same time, the labour force has lost 3,000 people. Somewhat worrying is that employment decreased by approximately 1,500 people in August relative to July of 2016, and by about 6,800 people since August of 2015. Full-time employment decreased by around 2,800 positions and part-time employment increased by around 1,200 positions in August relative to July 2016, see Table 1. In a yearly time frame comparison, August 2015 - 2016, the situation is reversed, full-time employment increased by about 900 people whereas part-time employment dropped by 7,900 people. Unfortunately, the unemployment increased by 1,700 people in August relative to July of 2016, and by about 3,900 people when compared to August of last year. These monthly results make it an uneasy environment for regional and local economic development planners, workforce development analysts and decision makers, as well as employment service providers.

Table 1. Change in the labour force characteristics – London Economic Region, people (x 1,000)

 

Aug-15

Jul-16

Aug-16

change July-August 2016

% change July-August 2016

change August 2015-2016

% change August 2015-2016

Population

553.6

558

558.6

0.6

0.11

5

0.90

Labour force

366.3

363.1

363.3

0.2

0.06

-3

-0.82

Employment

345.1

339.8

338.3

-1.5

-0.44

-6.8

-1.97

Full-time employment 

278.5

282.2

279.4

-2.8

-0.99

0.9

0.32

Part-time employment 

66.7

57.6

58.8

1.2

2.08

-7.9

-11.84

Unemployment

21.1

23.3

25

1.7

7.30

3.9

18.48

Note: Statistics Canada rounds its reported labour force statistics to the nearest hundred.

Data source: Statistics Canada, CANSIM, Table 282-0122.

 

The unemployment rate in the London Economic Region increased by a half percentage point in August relative to July of 2016 and by 1.1 percent since August of 2015, see Table 2. The participation and employment rates decreased as well, signaling some level of decline of the labour market in the region. Data source: Statistics Canada, CANSIM, Table 282-0122Note: Statistics Canada rounds its reported labour force statistics to the nearest hundred.

A finer analysis is offered by looking at regional employment by occupational group, see Table 3. The occupational groups with the largest growth between July-August of 2016 were: “occupations in art, culture, recreation and sport [5]” with 1,900 newly added positions, “business, finance and administration occupations [1]” with 600 newly added positions, and “trades, transport and equipment operators and related occupations [7]” with 400 newly added positions.

On the other hand, the occupational groups with the largest loss in employment during the same time frame were: “natural and applied sciences and related occupations [2] with a loss of 1,800 positions, “natural resources, agriculture and related production occupations [8]” with a loss of 1,700 positions, and “occupations in education, law and social, community and government services [4].” The numbers posted between brackets are the one digit National Occupational Classification (NOC) codes.

Table 2. Change in labour force characteristics – London Economic Region, rates

 

Aug-15

Jul-16

Aug-16

change July-August 2016

change August 2015-2016

Unemployment rate (percent)

5.8

6.4

6.9

0.5

1.1

Participation rate (percent)

66.2

65.1

65

-0.1

-1.2

Employment rate (percent)

62.3

60.9

60.6

-0.3

-1.7

Note: Statistics Canada rounds its reported labour force statistics to the nearest hundred.

Data source: Statistics Canada, CANSIM, Table 282-0122.

 

Table 3. Employment by occupation (NOC) in London Economic Region (people x 1,000)

National Occupational Classification (NOC) Aug-15 Jul-16 Aug-16 change July-August 2016 % change July-August 2016 change August 2015-2016 % change August 2015-2016
Total employed, all occupations 345.1 339.8 338.3 -1.5 -0.43 -6.8 -1.97
Management occupations [0] 27.6 29.3 29.3 0 0.00 1.7 6.16
Business, finance and administration occupations [1] 48.6 43.9 44.5 0.6 1.23 -4.1 -8.44
Natural and applied sciences and related occupations [2] 20.9 17.7 15.9 -1.8 -8.61 -5 -23.92
Health occupations [3] 30.6 31.1 31.4 0.3 0.98 0.8 2.61
Occupations in education, law and social, community and government services [4] 35.6 40 38.5 -1.5 -4.21 2.9 8.15
Occupations in art, culture, recreation and sport [5] 5 8.1 10 1.9 38.00 5 100.00
Sales and service occupations [6] 83 78.4 78.6 0.2 0.24 -4.4 -5.30
Trades, transport and equipment operators and related occupations [7] 56 51.1 51.5 0.4 0.71 -4.5 -8.04
Natural resources, agriculture and related production occupations [8] 7.5 9.8 8.1 -1.7 -22.67 0.6 8.00
Occupations in manufacturing and utilities [9] 30.4 30.2 30.3 0.1 0.33 -0.1 -0.33

Note: Statistics Canada rounds its reported labour force statistics to the nearest hundred.

Data source: Statistics Canada, CANSIM, Table 282-0156.

 

In the yearly time frame comparison, August 2015-2016, the top three growing occupational groups in the London Economic Region were: “occupations in art, culture, recreation and sport [5]” with 5,000 positions, “occupations in education, law and social, community and government services [4]” with 2,900 positions and “management occupations [0].”

In contrast, the top three occupations groups that diminished during the same time frame comparison in the region were: “trades, transport and equipment operators and related occupations [7]” with 4,500 positions lost, “sales and service occupations [6]” with 4,400 positions lost, and “business, finance and administration occupations [1] with 4,100 positions lost.

Table 4. Employment by industry (NAICS) in London Economic Region (people x 1,000)

North American Industry Classification System (NAICS) 3 Aug-15 Jul-16 Aug-16 change July-August 2016 % change July-August 2016 change August 2015-2016 % change August 2015-2016
Total employed, all industries 345.1 339.8 338.3 -1.5 -0.43 -6.8 -1.97
Goods-producing sector 95.6 92.1 92.9 0.8 0.84 -2.7 -2.82
Agriculture [111-112, 1100,  1151-1152] 12.5 11.7 10.6 -1.1 -8.80 -1.9 -15.20
Forestry, fishing, mining, quarrying, oil and gas [21, 113-114, 1153,  2100] x x x x x x x
Utilities [22] 1.5 x x x x x x
Construction [23] 26.4 26.5 28.3 1.8 6.82 1.9 7.20
Manufacturing [31-33] 54.7 52.7 52.9 0.2 0.37 -1.8 -3.29
Services-producing sector 249.6 247.7 245 -2.7 -1.08 -4.6 -1.84
Wholesale and retail trade [41,  44-45] 51.4 44.4 43.5 -0.9 -1.75 -7.9 -15.37
Transportation and warehousing [48-49] 14.9 13.8 13.5 -0.3 -2.01 -1.4 -9.40
Finance, insurance, real estate, rental and leasing [52-53] 18.7 18.1 19.8 1.7 9.09 1.1 5.88
Professional, scientific and technical services [54] 17.1 15.7 14.9 -0.8 -4.68 -2.2 -12.87
Business, building and other support services [55-56] 20.1 18.3 17 -1.3 -6.47 -3.1 -15.42
Educational services [61] 24.8 25.9 24.9 -1 -4.03 0.1 0.40
Health care and social assistance [62] 47.2 50.6 51.7 1.1 2.33 4.5 9.53
Information, culture and recreation [51,  71] 9.1 14.2 15.5 1.3 14.29 6.4 70.33
Accommodation and food services [72] 21.7 25.1 24.4 -0.7 -3.23 2.7 12.44
Other services (except public administration) [81] 12.1 14.4 13.5 -0.9 -7.44 1.4 11.57
Public administration [91] 12.5 7.2 6.6 -0.6 -4.80 -5.9 -47.20

Note: Statistics Canada rounds its reported labour force statistics to the nearest hundred.

Data source: Statistics Canada, CANSIM, Table 282-0124. 

 

Further insight is offered by cross-tabulating the employment and economic sector, see Table 4. In immediate-term overview, July-August of 2016 comparison, “construction [23]” added 1,800 new jobs, “finance, insurance, real estate, rental and leasing [52-53]” added 1,700 new positions, “information, culture and recreation [51, 71]” added 1,300 new positions and “health care and social services [62]” added 1,100 positions.

On the other hand, the regional economic sectors that lost jobs in short-term, July-August of 2016, were: “business, building and other support services [55-56] with about 1,300 lost positions, “agriculture [111-112,  1110, 11521-1152]” with around 1,100 lost positions, “other services –except public administration [81]” with about 900 lost positions, and “wholesale and retail trade [41, 44-45]”with around 900 lost positions.

In the short-term overview, August 2015 – 2016 comparison, the top three sectors adding jobs were: “information, culture and recreation [51, 71] with about 6,400 added jobs, “healthcare and social assistance [62] with 4,500 added jobs, and “accommodation and food services [72] with about 2,700 added jobs.

During the same time frame comparison, the top three economic sectors that lost jobs were: “wholesale and retail trade [41, 45-46]” with about 7,900 lost jobs, “public administration [91] with about 5,900 lost jobs, and “business, building and other support services [55-56]” with about 3,100 lost jobs.

While this immediate- and short-term analysis exercise identifies some changes in employment at the regional level, it doesn’t reveal structural issues. In conclusion, there was a slight decline in market conditions in August relative to July of 2016, but when compared to August of 2015 the changes were more severe. A more in depth look at the sectors that suffered significant job losses would lead to a better understanding of the regional labour market.

During the month of August, the local press partially captured the regional business dynamic. A diverse number of businesses announced their opening and expansion. Below is a brief list of such organizations.

Start.ca is one of London’s technology companies that made news in August of 2016. The internet and cable service provider has added 40 workers in the last five months and now employs more than 100, and still hires. They recently moved to a larger location on York Street (De Bono, 2016, August 14).

Plant Matter Kitchen is a new vegan restaurant that opened in August 11th in Wortley Village, London. Its business focus lies on creative, tasty vegan food made from locally sourced ingredients. It currently employs 25 people that cook everything from scratch.

Disney Store has opened at Masonville Mall in London as part of a previously reported $77-million dollar revitalization project (CTV News, 2016, August 6).

Construction in London has been very successful this year, which resulted in significant increases in the number of single homes as well as apartment building structures raised. Commercial property development also has been up relative to 2015 (De Bono, 2016, September 9).

London International Airport informed the public that despite the loss of United Airlines flights to Chicago, its activity is up to record passenger loads. The new service additions from Westjet Encore, Westjet and Air Canada has also helped grow the business (Daniszewski, 2016, August 11).

Coder Scoop Inc. announced its presence on London’s market offering low cost coding services. Using the Uber business model, the Coderscoop proposes very advantageous programming services by connecting the local freelancers with the local demand for such services (CNW, 2016, August 2).

Although our list here is brief and the month of August was generally hot and somewhat rainy, suggesting a slow passage of time, intense changes and transformations have been going on in the regional labour market. Some wind of optimism is expected to come with the harvesting season.

 

References

CNW (2016, August 2). Ontario Startup seeks to change software industry, forever. CNW, London. Retrieved from http://www.newswire.ca/news-releases/ontario-startup-seeks-to-change-sof...

CTV News (2016, August 6). Huge crowds flood Masonville Mall for Disney Store grand opening. CTV News London. Retrieved from http://london.ctvnews.ca/huge-crowds-flood-masonville-mall-for-disney-st...

Daniszewski, H. (2016, August 11). London Airport biz hits new height. London Free Press. Retrieved from http://www.lfpress.com/2016/08/11/london-airport-biz-hits-new-high

De Bono, N. (2016, August 14). Cable, internet provider grows again. London Free Press. Retrieved from http://www.lfpress.com/2016/08/14/cable-internet-provider-grows-again 

De Bono, N. (2016, September 9). London economy: Hot home sales and huge spike in construction this year only two of the key barometers of the city’s rebound from the after-effects of the last recession. London Free Press. Retrieved from http://www.lfpress.com/2016/09/09/london-economy-hot-home-sales-and-a-hu...

 

LEPC logo

 

The Local Employment Planning Council 

project is supported by: 

In partnership with:
EMO Workforce Planning and Development Board logo Literacy Link South Central logo
Ontario Government Trillium logo

This project is funded in part by the Government of Canada and the Government of Ontario. The views expressed in this document do not nesicarily reflect those of the Government of Ontario.