Canada June Employment, Earnings and Hours Report (Text)

The following is the text of Canada’s employment, earnings, and hours report for June released by Statistics Canada.

Average weekly earnings of non-farm payroll employees were $898.00 in June, up 0.6% from the previous month. On a year- over-year basis, earnings increased 3.0%.

The 3.0% increase during the 12 months to June reflects a number of factors, including wage growth, changes in the composition of employment, as well as average hours worked per week. In June, non-farm payroll employees worked an average of 33.2 hours per week, up from 32.9 hours from both the month before and 12 months earlier.

Average weekly earnings by sector

Year-over-year growth in average weekly earnings outpaced the national average of 3.0% in four of the largest industrial sectors: manufacturing; educational services; construction; as well as accommodation and food services. In contrast, earnings declined in administrative and support services.

In manufacturing, weekly earnings increased 5.9% to $1,011.16 in the 12 months to June, with the most notable growth among manufacturers of transport equipment; plastics and rubber products; machinery; food; and wood products.

Average weekly earnings in educational services increased 4.9% to $1,004.80 over the same period. The highest growth was in elementary and secondary schools.

In construction, weekly earnings rose 4.9% to $1,145.20. Growth was widespread across most industries in this sector.

Weekly earnings in accommodation and food services were up 4.0% to $372.14 in the 12 months to June. Increases were most notable in special food services and limited-service eating places.

Weekly earnings of payroll employees in administrative and support services fell 1.6% to $713.79. Earnings declined in investigation and security services and in office administrative services.

Average weekly earnings up in every province

Average weekly earnings of non-farm payroll employees increased in every province in the 12 months to June. Growth was highest in Newfoundland and Labrador, Saskatchewan and Prince Edward Island.

In Newfoundland and Labrador, average weekly earnings increased 7.0% to $924.42, the second highest wage level among the provinces after Alberta.

In Saskatchewan, average weekly earnings were $914.27 in June, up 6.6% from 12 months earlier. Earnings in the province have been higher than the national average since August 2011.

In Prince Edward Island, average weekly earnings increased 5.9% to $760.74.

The lowest year-over-year increase occurred in Quebec, where average weekly earnings rose 0.4% to $812.47.

Non-farm payroll employment by sector

Total non-farm payroll employment rose by 35,100 between May and June, the fourth consecutive monthly increase. Most sectors showed job gains in June.

On a year-over-year basis, non-farm payroll employment increased 2.0% (+296,500), with most of these gains since February 2012 (+219,000).

Among all sectors, mining, quarrying and oil and gas extraction (+8.5%) posted the highest 12-month employment growth rate. It was followed by the construction sector (+5.2%) and accommodation and food services (+3.5%).

Note to readers

The Survey of Employment, Payrolls and Hours (SEPH) is a business census of non-farm payroll employees. Its key objective is to provide a monthly portrait of the level of earnings, the number of jobs and hours worked by detailed industry at the national, provincial and territorial level.

Statistics Canada also produces employment estimates from its monthly Labour Force Survey (LFS). The LFS is a household survey, the main objective of which is to divide the working-age population into three mutually exclusive groups: the employed (including the self-employed), unemployed and not in the labour force. This survey is the official source for the unemployment rate and collects data on the socio-demographic characteristics of all those in the labour market.

As a result of conceptual and methodological differences, estimates of changes from SEPH and LFS do differ from time to time. However, the trends in the data are quite similar.

Unless otherwise stated, this release presents seasonally adjusted data, which facilitates comparisons by removing the effects of seasonal variations. For more information on seasonal adjustment, see Seasonal adjustment and identifying economic trends (http://www.statcan.gc.ca/pub/11-010-x/2010003/part- partie3-eng.htm) .

Non-farm payroll employment data are for all hourly and salaried employees, as well as the “other employees” category, which includes piece-rate and commission-only employees.

Average weekly hours data are for hourly and salaried employees only and exclude businesses that could not be classified to a North American Industry Classification System (NAICS) code.

All earnings data include overtime pay and exclude businesses that could not be classified to a NAICS code. Earnings data are based on gross taxable payroll before source deductions.

Average weekly earnings are derived by dividing total weekly earnings by the number of employees.

With each release, data for the current reference month are subject to revision. Data have been revised for the previous month. Users are encouraged to request and use the most up-to- date data for each month.

To contact the reporter on this story: Ilan Kolet in Ottawa at ikolet@bloomberg.net

To contact the editor responsible for this story: Marco Babic at mbabic@bloomberg.net

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