In May, unemployment in Canada fell to its lowest rate in two years. This is a direct result from more self-employed Canadians and job seekers, pushing the unemployment rate down two/tenths of a point to 7.4 per cent.
Statistics Canada’s Labour Force Survey showed an increase of 22,300 new jobs last month. May’s unemployment rate in Canada was last reached in January 2009, just a few months after the country hit this major recession.
But the report’s details showed limited gains. This drop of two/tenths is mainly a result of 27,500 fewer Canadians actively looking for a job. Additionally, most jobs, although full-time, were from self employment, indicating that Canadians are turning toward themselves for employment opportunities. It seems Canadians are frustrated with the lack of job options and therefore are making their own opportunities.
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"Small business is of vital importance to the Canadian economy, but job creation within this category in a soft spot for the economy (and) is always a knock against the quality of the headline gain," Derek Holt, vice-president of economics for Scotiabank, said in a note to clients.
According to the Canadian Press, the number of employees in Canada actually dropped by 7,500 in May with the manufacturing industry taking a big hit with the loss of 22,500 jobs. Governments are also shedding the fat taking away 44,300 jobs to deal with its deficits.
Provinces leading employment increases were Quebec, Alberta and Saskatchewan and job gains came from the retail, wholesale trade, information, culture and recreation industries.
The Labour Force Survey, conducted by Statistics Canada, estimates employment in Canada from a sample.