The unemployment rate drops to 5.1% in Canada in May and increases to 4.2% in Quebec

Employment increased by 40,000 in May in Canada and the unemployment rate fell slightly to 5.1%; it was a new record low.

Statistics Canada attributes the increase in employment mainly to full-time work, which increased by 0.9%.

Service-sector employment rose 0.5% in May, with the gain spread across several sectors, including accommodation and food services. In contrast, employment in the goods sector fell 1%, mainly due to a 2.4% drop in manufacturing.

The unemployment rate for people aged 25 to 54 was 4.3% in May, about the same as the previous month.

Statistics Canada reports that in Quebec, the unemployment rate increased by 0.3 in May, to 4.2%. Employment was little changed after declining in April, as an increase in full-time work was offset by a decline in part-time work. There was a greater number of Quebecers active in the labor market and employment changed little, which explains the rise in the unemployment rate.

New Brunswick was the only province to post a drop in employment in May, down 1%, which partly offset the increases observed in March and April. The unemployment rate was little changed, standing at 7.1% compared to 7% in April.

During the same period, the unemployment rate jumped from 6% to 6.7% in Nova Scotia and fell from 8.1% to 7.8% in Prince Edward Island.

In addition, Statistics Canada observed that the average hourly wage of all employees increased by 3.9% over 12 months in May in Canada, up from the increase of 3.3% observed in April.

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