- Payroll employment increased by 71,100 in January, with Ontario, Alberta, and Quebec leading the way.
- Payroll employment in the services-producing sector increased by 79,000 in January, with retail trade, transportation and warehousing, and public administration leading the way.
- Average weekly earnings grew by 2.9% YoY to $1,185 in January, with the goods-producing sector leading the way with a 5.8% increase.
Editor’s Notes: In this report, we have used data from the Statistics Canada website.
Canada’s payroll employment, earnings and hours, and Job Vacancies have been released for January 2023. The report indicates that the number of employees receiving pay or benefits from their employer, measured as “payroll employees” in the Survey of Employment, Payrolls and Hours, increased by 71,100 in January, following an increase of 53,700 in December 2022. Overall it has generally trended upwards over the previous five months, resulting in cumulative gains of 275,400 from September 2022 to January 2023. In this article, we will discuss the highlights of the report.
Payroll employment increases in six provinces in January
The report reveals that payroll employment increased in six provinces in January, with the largest gains observed in Ontario, Alberta, and Quebec. Specifically, payroll employment in Ontario increased by 17,700, Alberta by 14,500, and Quebec by 13,900. This increase can be attributed to the growing number of companies and businesses opening and expanding in these provinces.
Payroll employment increases in the services-producing sector
The report also reveals that payroll employment in the services-producing sector increased by 79,000 in January. This increase was recorded in 12 of the 15 sectors, led by retail trade, transportation and warehousing, and public administration. In contrast, payroll employment in the goods-producing sector recorded little change in January, with a decrease observed in the construction sector, including non-residential building construction and building equipment contractors.
Payroll employment increases in retail trade for the first time since September 2022
The report also shows that payroll employment in Retail Trade increased by 22,700 in January, the first monthly increase since September 2022. Monthly gains were recorded in eight provinces, including Ontario and Quebec, while payroll employment in the sector was little changed in Manitoba and Prince Edward Island. Nationally, 7 of the 9 subsectors in retail trade recorded monthly gains in January, with food and beverage retailers posting the largest increase.
Payroll employment in transportation and warehousing increases for the eighth consecutive month
Employment in transportation and warehousing grew by 12,800 in January, increasing for the eighth consecutive month, bringing the total gain to 36,900 since June 2022. Increases were recorded in six provinces, led by Ontario, Alberta, and Quebec. Year over year, the sector grew by 50,200 nationally in January. In January, increases in payroll employment were recorded in 5 of the 11 subsectors, led by truck transportation and rail transportation.
Payroll employment in public administration continues an upward trend in January
Employment in public administration increased for the seventh consecutive month in January, bringing the total gain to 48,600 since July 2022. The largest monthly gain in January 2023 was recorded in local, municipal, and regional public administration. Five provinces recorded employment increases in public administration, led by Ontario, Saskatchewan, and British Columbia.
Goods-producing sector drives year-over-year growth in average weekly earnings in January
On a year-over-year basis, average weekly earnings grew 2.9% to $1,185 in January. Year over year, average weekly earnings in the goods-producing sector increased by 5.8% in January 2023. Robust gains were recorded in utilities, construction, forestry, and logging. In January, average weekly earnings in the services-producing sector grew at a slower pace year over year compared with the goods-producing sector. Stronger gains in real estate and rental and leasing and finance and insurance were tempered by slower growth in public administration and a decline in retail trade.
Conclusion
To sum up, the Payroll employment, earnings, and hours report for January 2023 showed a positive trend in payroll employment, particularly in the services-producing sector, which increased by 0.6%. Retail trade and transportation and warehousing also saw notable gains, while public administration recorded a seventh consecutive month of employment increases. Meanwhile, average weekly earnings in the goods-producing sector saw robust gains, growing by 5.8% year over year. The report suggests a generally positive outlook for Canada’s labor market, with gains in employment and earnings in various sectors.
