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Canada. Non-farm Payroll Employment Down

Non-farm payroll employment fell by 110,200 in August (-0.8%), following an increase of 27,300 in July. Half of the overall change in August came from a drop in educational services, as payroll employment in that industry returned from unusually high levels in July.

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Data on the education sector

Changes in payroll employment in education during the summer months can be affected by changes in payment schedules and school-year calendars. Month-to-month changes should therefore be interpreted with caution, and more attention given to long-term trends.

While education accounted for the majority of the decrease in August, declines were also recorded in other industries. In August, 216 of 305 industries covered by the survey posted losses. This was the largest number of industries with declining payroll employment since January 2009, when 229 industries shed jobs.

In addition to the decline in educational services in August, there were widespread losses across the goods and service sectors.

Payroll employment fell in most provinces in August, with the largest declines in Ontario, Quebec and Alberta. At the same time, the number of payroll employees rose in Prince Edward Island and Newfoundland and Labrador.

Since the peak of employment in October 2008, the number of payroll employees has declined by 492,600 (-3.3%). Declines over this period have been particularly sharp in the goods sector, where the number of employees has fallen by 11.3%. In the service sector, payroll employment has declined by 1.8%.

Average weekly earnings of payroll employees stood at $828.14 in August, up 2.0% from August 2008. This was down from the most recent year-over-year peak of 3.0% in October 2008.

Service sector losses

The number of payroll employees in educational services fell by 54,400 in August, following an increase of 32,400 in July. Since the peak of payroll employment, the number of employees in the overall education sector has fallen by 0.9%, less than the national all-industries (-3.3%) decline over the same period.

Reported data for July and August reveal changes in payment schedules compared with previous years in a number of school boards. This resulted in an unusual increase in the number of employees remaining on payrolls between June and July, followed by a sharp decline between July and August.

Elsewhere in the service sector, there were declines in payroll employment in grocery stores (-4,500), full-service restaurants (-3,800), other financial investment activity (-2,900), employment services (-2,200) and business support services (-2,100). All of these industries have experienced declining payroll employment since the start of the economic downturn, with the most pronounced losses in employment services, down 28,800 (-16.3%), followed by full-service restaurants, down 14,600 (-3.4%).

There were some industries which added jobs in August. Notable payroll employment increases were found in traveller accommodation (+2,800) and scheduled air transportation (+2,500). There were also job gains in general medical and surgical hospitals in August (+1,400).

Goods sector losses

Payroll employment fell by 28,100 in the goods sector in August, with the largest losses occurring in non-residential construction (-1,600), electric power generation, transmission and distribution (-1,400), non-ferrous metal production and processing (-1,400) and oil and gas extraction (-1,300).

The number of employees in motor vehicle parts manufacturing increased by 1,900 in August.

Highway, street and bridge construction also added 1,400 employees in August.

Average weekly earnings

Average weekly earnings of payroll employees stood at $828.14 in August, up 2.0% from August 2008. This was up from the 1.6% growth observed between July 2008 and July 2009, but lower than the most recent year-over-year peak of 3.0% in October 2008.

Among Canada's six largest industrial sectors, between August 2008 and August 2009, average weekly earnings increased in public administration (+5.5%), educational services (+4.9%), health care and social assistance (+3.2%), and accommodation and food services (+0.2%).

Over the same period, average weekly earnings fell in manufacturing (-2.4%) and retail trade (-1.5%).

Prince Edward Island saw the fastest increase in average weekly earnings between August 2008 and August 2009, up 4.2%, followed by Newfoundland and Labrador (+3.9%) and Quebec (+3.8%). Ontario (+1.6%) and Saskatchewan (+1.3%) had growth below the national average. British Columbia (-0.1%) was the only province to post a decline in average weekly earnings over the period.

Total hours

Total hours worked including overtime by hourly paid employees fell by 5.0% between August 2008 and August 2009. This was the sharpest year-over-year decline in total hours worked since the start of the economic downturn.
© Statistics Canada -
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