Highlights

Employment increased by 37,000 in January, following three months of little change. The employment rate fell 0.1 percentage points to 61.6%, as population growth (+0.4%) outpaced employment growth (+0.2%). The unemployment rate fell 0.1 percentage points to 5.7%, the first decline since December 2022.

The participation rate fell 0.2 percentage points to 65.3% in January 2024, as the number of people in the labour force held steady and the population aged 15 and older rose. Employment increased in Ontario (+24,000; +0.3%), Newfoundland and Labrador (+7,500; +3.2%), Manitoba (+6,900; +1.0%) and Nova Scotia (+3,700; +0.7%). It declined in Saskatchewan (-6,200; -1.0%).

There were employment gains spread across several industries in the services-producing sector, led by wholesale and retail trade (+31,000; +1.1%) as well as finance, insurance, real estate, rental and leasing (+28,000; +2.1%). There were declines in other industries, led by accommodation and food services (-30,000; -2.7%).

Total hours worked in January rose 1.1% from one year earlier and were up 0.6% in the month. Average hourly wages among employees rose 5.3% on a year-over-year basis in January (+$1.74 to $34.75), following an increase of 5.4% in December 2023.

Employment rate declines for the fourth consecutive month

Following three months of little change, employment rose by 37,000 (+0.2%) in January 2024, driven by an increase in part-time work (+49,000; +1.3%).

The employment rate—the proportion of the working-age population that is employed—fell to 61.6% (-0.1 percentage points) in January, the fourth consecutive monthly decline, as the population aged 15 and older in the Labour Force Survey (LFS) grew by 126,000 (+0.4%) in the month. On a year-over-year basis, employment rose by 345,000 (+1.7%), while the working-age population, driven by permanent and temporary immigration, rose by 1.0 million (+3.1%), pushing the employment rate down 0.8 percentage points.

Following two months of little change, employment rose by 48,000 (+1.1%) among public sector employees in January. It was little changed in the month for private sector employees and self-employed workers. On a year-over-year basis, employment was up 4.1% for public sector employees (+174,000), up 1.6% for private sector employees (+210,000) and little changed for self-employed workers.

Employment rate falls among core-aged women and men and among young women

The employment rates of core-aged women and men (aged 25 to 54) both fell in January, as employment held steady while the population rose. The employment rate of core-aged women was 81.1%, down 0.3 percentage points in the month and down 0.9 percentage points from the record high of 82.0% observed in January and March 2023. Meanwhile, the employment rate of core-aged men fell 0.3 percentage points to 87.2% in January 2024, and was down 1.0 percentage points from the recent high of 88.2% recorded in June 2023.

The employment rate of young women aged 15 to 24 fell 0.7 percentage points to 56.0% in January 2024, and was down 4.7 percentage points from the recent high of 60.7% reached in January 2023. Since May 2023, the employment rate for female youth has remained below the pre-COVID-19 pandemic average of 59.9% in 2019.

Among young men, the employment rate held steady at 56.0% in January 2024 as the monthly employment increase (+14,000; +1.0%) kept pace with population growth for this group. However, the employment rate of male youth has generally followed a downward trend in the past year, declining 2.2 percentage points from January 2023 to January 2024.

Employment for men aged 55 and older rose by 17,000 (+0.7%) in January, partly offsetting the decline in the previous month (-23,000). Employment for women aged 55 and older was little changed in January.

Unemployment rate falls for the first time since December 2022

The unemployment rate fell 0.1 percentage points to 5.7% in January 2024. This was the first decline in the unemployment rate since December 2022. The unemployment rate had been on an upward trend through most of 2023, rising from 5.1% in April to 5.8% in December.

Participation rate falls

The participation rate—the number of people who are either employed or unemployed as a percentage of the population aged 15 and older—fell 0.2 percentage points in January 2024 to 65.3%.

The labour force participation rate fell 0.4 percentage points from January 2023 (65.7%) to January 2024 (65.3%), as the population not in the labour force increased (+4.5%; +493,000) at a faster rate than the total population aged 15 and older (+3.1%; +1.0 million). People can be outside of the labour force at different ages for various reasons, including because they are going to school, providing care or performing household work, or because they have retired.

From January 2023 to January 2024, the number of persons not in the labour force who were going to school as their main activity rose by 172,000 (+10.0%). In January 2024, this group accounted for 16.1% of the population not in the labour force, up slightly from 15.3% in January 2023 (not seasonally adjusted).

More than half of those not in the labour force in January 2024 were retired. Although this group increased in size (+123,000; +2.0%) from January 2023 to January 2024, it decreased as a proportion of the population not in the labour force (-1.3 percentage points to 54.5%).

From January 2023 to January 2024, there were also increases in the number of persons not in the labour force whose main activity was caregiving and household work (+65,000; +4.4%) and in the number who were out of the labour force for other reasons (+132,000; +7.5%), a group that includes persons who had an illness or disability, were travelling or volunteering. The share of both groups of the population not in the labour force was little changed over the period.

Female youth participation rate falls to lowest point in over 20 years

On a year-over-year basis, the labour force participation rate has fallen more steeply among youth aged 15 to 24. In January 2024, the youth labour force participation rate was down 3.0 percentage points to 62.7% compared with January 2023. In comparison, the participation rate was down 0.3 percentage points to 88.6% for the population aged 25 to 54, and was little changed at 36.8% for the population aged 55 and older.

The participation rate of young women has followed a strong downward trend since February 2023, with a cumulative decline of 4.2 percentage points over that period. Excluding periods of public health restrictions during the pandemic, the participation rate for female youth in January 2024 was at its lowest level since May 2000. This reflected declines among both students and non-students. From January 2023 to January 2024, the participation rate of young women fell 3.9 percentage points to 47.0% for students, while it fell 2.1 percentage points to 85.5% for non-students (not seasonally adjusted).

For young men, the downward trend in the participation rate is more recent, with a cumulative decline of 2.9 percentage points from June 2023 to January 2024. In the 12 months to January 2024, the participation rate of young men fell more for non-students (-3.4 percentage points to 84.6%) than for students (-0.6 percentage points to 41.4%; not seasonally adjusted).

The downward trend in the overall youth labour force participation rate was accompanied by an increase in the youth unemployment rate, which rose 1.1 percentage points to 10.8% in the 12 months to January 2024, indicating that labour market conditions for youth have become more difficult in the past year.

Growth in hourly wages higher for women and for workers in the top quartile

In January, average hourly wages among employees were up 5.3% on a year-over-year basis (+$1.74 to $34.75), following an increase of 5.4% in December 2023.

From January 2023 to January 2024, average hourly wages rose at a faster pace for women (+6.2% to $32.38) than for men (+4.4% to $37.06). Wages rose at a similar pace for youth (+5.5% to $20.79) and core-aged (+5.4% to $37.41) employees over the same period, while they rose at a slower pace for people aged 55 and older (+3.7% to $35.72).

Average hourly wages rose 5.9% to an average of $60.58 for employees with hourly wages in the top 25% of the wage distribution in January 2024, compared with an increase of 4.6% (to $17.64 per hour) for those with hourly wages in the bottom 25% of the wage distribution (not seasonally adjusted).

Employment gains spread across the services-producing sector

Employment rose by 31,000 (+1.1%) in wholesale and retail trade in January, the first increase since June 2023. Employment in this industry had been on a downward trend from August to December 2023. On a year-over-year basis, employment in wholesale and retail trade was little changed in January 2024.

Employment fell in accommodation and food services (-30,000; -2.7%) in January, following seven months of little change. On a year-over-year basis, employment in accommodation and food services was also little changed in January. Employment rose in finance, insurance, real estate, rental and leasing (+28,000; +2.1%) in January, partially offsetting a cumulative decline of 56,000 (-4.0%) observed from July to November 2023.

There were also increases in educational services (+28,000; +1.8%), transportation and warehousing (+20,000; +1.9%), business, building and other support services (+16,000; +2.4%) and public administration (+16,000; +1.3%) in January 2024. These increases were partially offset by declines in professional, scientific and technical services (-17,000; -0.9%) and information, culture and recreation (-13,000; -1.5%).

Employment up in four provinces in January, led by Ontario

Employment in Ontario increased by 24,000 (+0.3%) in January, partly offsetting a decline of 37,000 (-0.5%) in December. The employment rate in the province held steady at 60.8% in January, but was down 1.4 percentage points on a year-over-year basis. From January 2023 to January 2024, employment growth in Ontario (+1.1%) trailed growth at the national level (+1.7%), while the working-age population in the LFS grew at a faster rate in the province (+3.4%) compared with Canada as a whole (+3.1%).

Following six months of little change, employment in Newfoundland and Labrador increased by 7,500 (+3.2%) in January, while the unemployment rate was little changed at 10.2%.

Employment rose by 6,900 (+1.0%) in Manitoba in January, following little change in the previous three months. The unemployment rate in Manitoba was 4.0% in January, little changed in the month but down 1.5 percentage points from its recent peak reached in August 2023. In January 2024, the unemployment rate in Manitoba was the lowest among the provinces.

Following two months of little change, employment in Saskatchewan decreased in January (-6,200; -1.0%), partly offsetting gains in September and October 2023. At 4.7%, the unemployment rate was little changed in January 2024.

In January, employment in Quebec was little changed for the fourth consecutive month, and the unemployment rate held steady at 4.5%. In the 12 months to January, employment in Quebec was little changed, while the population aged 15 and older in the LFS grew by 1.9%. Consequently, the employment rate fell from 62.5% in January 2023 to 61.6% in January 2024.

Canada-US comparison: Unemployment rate unchanged in both countries

Comparisons between the labour market situation in Canada and in the United States can be made by adjusting Canadian data to US concepts. For more information, see “Measuring Employment and Unemployment in Canada and the United States – A comparison.”

Adjusted to US concepts, the Canadian unemployment rate for people aged 16 and older remained at 4.8% in January, unchanged for the fourth consecutive month. In the United States, the unemployment rate was 3.7% for the third consecutive month.

Also adjusted to US concepts, the employment rate was 62.1% in Canada in January, compared with 60.2% in the United States. The employment rate has typically been higher in Canada than in the United States, but the gap has narrowed in the past year. From January 2023 to January 2024, the employment rate, adjusted to US concepts, fell by 0.8 percentage points in Canada while it held steady in the United States over the same period.

In the Spotlight: Labour market trends among Canada’s Black population

February is Black History Month, a time to recognize and celebrate the rich contributions and accomplishments of Black people in Canada. The population of Black Canadians reached 1.5 million in 2021, and is projected to reach more than 3.0 million by 2041. In January 2024, Black Canadians represented 4.4% of the labour force in Canada. The proportion was highest in Ontario (5.6%) and in Quebec (5.4%) (three-month moving averages, not seasonally adjusted).

In 2023, over 1 in 5 (21.6%) Black workers aged 25 to 54 worked in health care and social assistance. In comparison, 14.5% of all core-aged workers worked in the industry. Apart from health care and social assistance, core-aged Black workers were most likely to work in finance, insurance, real estate, rental and leasing (9.2%), manufacturing (8.1%), professional, scientific and technical services (8.0%), transportation and warehousing (7.2%) and retail trade (7.1%).

Despite their historic and continuing importance in the Canadian labour market, Black people continue to face barriers, including lower employment rates and lower wages. The employment rate of Black Canadians in the core working age was 77.7% in January 2024, down from 79.8% a year earlier. In comparison, the employment rate for the overall core-aged population in January fell from 84.8% to 84.3% over that same period (three-month moving averages, not seasonally adjusted).

In 2023, the average hourly wage for core-aged Black Canadians was $30.83, compared with $36.27 for the total population. From 2022 to 2023, the average hourly wage for core-aged Black Canadians rose by 5.3%, while for the total population it rose by 5.0%.

In the Spotlight: Share of workers who plan to leave their job increases notably among youth in permanent employment

Changes in economic conditions, such as downturns and increases in the cost of living, can have an impact on the number of workers who choose to leave their job. In January 2024, 6.9% of permanent employees were planning to leave their job in the next 12 months, up 0.5 percentage points compared with January 2022 (population aged 15 to 69, not seasonally adjusted).

Permanent employees who were planning to leave their job in January 2024 were most likely to do so to change careers (25.6%), because of low pay (19.1%) and to retire (14.7%). In comparison, in January 2022, 24.2% were planning to leave mainly to change careers, 17.6% due to low pay and 17.5% to retire.

Compared with January 2022, the share of permanent employees who planned to leave their job grew notably among youth (aged 15 to 24), rising by 4.2 percentage points to reach 14.9% in January 2024. In contrast, this proportion fell by 0.7 percentage points to 6.5% among those aged 55 to 69.

Intentions to leave are typically higher among employees earning lower wages. In January 2024, permanent employees with hourly wages in the bottom 25% of the wage distribution were more than twice as likely to indicate they were planning to leave their job in the next 12 months (11.7%) compared with those with wages in the top 25% (4.9%). This difference was also present in January 2022, but was smaller. From January 2022 to January 2024, the share of low-wage employees planning to leave grew by 2.3 percentage points, possibly reflecting stronger incentives to find a more highly paid job in the context of the increase in the cost of living.

Source: Statistics Canada