Employment Increased Sharply in Québec and Canada in November
Employment Increased Shar
According to Statistics Canada, employment in Québec increased for a fourth consecutive month in November. Seasonally adjusted data indicates that Québec’s economy gained 18,200 (net balance) jobs in November 2012, all of which were full-time jobs.
Employment in Canada also increased sharply in November compared to last month, with 59,300 new jobs. The Canadian economy had gained 1,800 jobs (net balance) in October.
Source: Statistics Canada
According to seasonally adjusted data, Québec’s November unemployment rate was 7.6 per cent, a decrease compared to 7.7 per cent the previous month. In Canada, the unemployment rate reached 7.2 per cent, a decrease compared to the 7.4 per cent rate posted in October (see graph below).
Source: Statistics Canada
To view the official Statistics Canada release, click here.
Details About Employment and the Unemployment Rate
Employment and the unemployment rate are the two main indicators of labour market conditions. The employment level is measured monthly in the Labour Force Survey (LFS), published by Statistics Canada. The unemployment rate, also published in the LFS, measures the proportion of unemployed persons compared to the active population:
Unemployment Rate = ( Number of unemployed persons / Active population ) * 100
Active population = People who are working + people who are unemployed
Unemployed Person = An individual aged 15 and over who is unemployed, but who is prepared to work and is seeking work
The evolution of the unemployment rate therefore depends on the relative variation in the number of jobs and the number of unemployed persons. Thus, even if there’s a decline in employment, the unemployment rate can also decrease if the number of unemployed persons decreases proportionately faster than the number of employed persons. Conversely, if there’s an increase in employment, the unemployment rate can also increase if the number of unemployed persons increases proportionately faster than the number of employed persons.
The series on employment and the unemployment rate provided by Statistics Canada began in 1986. Data for Canada and Québec are published monthly. Data for the six Census Metropolitan Areas (CMAs) and the 17 administrative regions1 (ARs), (seasonally adjusted for the CMAs and not adjusted for the ARs) are also published monthly, but as three-month moving averages. Statistics Canada publishes data on an annual basis for the following cities: Sept-Îles, Baie-Comeau, Rimouski, Shawinigan, Drummondville, Granby, Saint-Jean-sur-Richelieu and Rouyn-Noranda/Val-d’Or.
The Labour Market and the Resale Market in Québec
Labour market conditions have a direct impact on the real estate market. However, these effects are often delayed so they are felt in the medium and long term. Only a sustainable trend (upward or downward) in employment level and in the unemployment rate has an influence on real estate market activity. It is therefore preferable to rely on the long-term trend that these two indicators follow.
1Statistics Canada jointly publishes data for the Côte-Nord region and the Nord-du-Québec region.
ply in Québec and Canada in November