London Economic Region* - Labour Market Briefing

London Economic Region* - Labour Market Briefing

By Emilian Siman

May 9, 2016

 

The labour market information released by Statistics Canada in May 5, 2016 allows us to assess our regional market condition as marginally deteriorated during the month of April of 2016 relative to January, or March, of 2016.

During the month of April the regional labour force increased by 4,000 people relative to January of 2016, the largest growth (3,400 people) happening in March-April of 2016. In the same time April’s unemployment rate increased by 1.9 % relative to January of 2016 (6.9% - 5.0%), or by 0.7% relative to the prior month. Since the beginning of the year, the employment lost 3,100 positions resulting from a gain of 200 positions in full-time employment against a loss of 3,300 positions in part-time positions. Relative to March, employment grew by 800 jobs resulting from an addition of 2,300 full-time jobs while a loss of 1,500 of part-time jobs.

Between January and April of 2016 unemployment rose by 7,100 people, 2,600 being added only between March and April of 2016. These mixed results suggest that there is a group of people on long time unemployment, temporarily not counted in the labour force, who randomly reaffirm their participation to the regional market. Also, April is the month when some of the college and university graduates start their participation to the regional labour market.

These results are somewhat unexpected since numerous factors were favourable to a growth of the labour market: low oil prices, low exchange rates for the Canadian dollar, good economic recovery of the largest Canadian trading partner – the US, mild winter, etc.

Manufacturing in the region added around 1,300 jobs in April of 2016 relative to prior month while Construction lost approximately 1,200 jobs during the same time frame. Agriculture added another 300 positions between March and April of 2016. Overall and considering the rounding involved in the reporting, the goods producing sector added approximately 500 jobs between March and April whereas the service producing sector added only around 200 jobs within the same time frame. The major contributing sub-sectors within the service-producing sector were: Educational Services and Health Care and Social Assistance which added approximately 900 and 1,300 new jobs respectively and Transportation and Warehousing and Business, Building and Other Support Services which lost approximately 900 and 1,500 jobs respectively between March and April. Other sub-sectors have been adding or dropping positions within this time frame.

Overall, the regional labour market seems relatively stable, with great export prospects for Manufacturing, Agriculture and Tourism as well as a healthy regional market dynamic for Education, Health Care and Business sub-sectors.

 

* London Economic Region includes Elgin, Middlesex and Oxford counties.

Data sources: Statistics Canada, CANSIM, Table 282-0122 and Table 282-0124.