Canada’s Unemployment Rate as of May 2022

By Remitbee - Jun 17, 2022

From 5.2 percent in April 2022, Canada’s unemployment rate fell to 5.1 percent in May 2022. This is the result of the increase in employment of 40,000 compared to only 15,000 net new jobs in April 2022. Young and core-aged women’s (ages 25 to 54) full-time employment was one of the key factors for the employment increase across several industries. Canada’s hourly wages also increased by 3.9 percent or $1.18 to $31.12 on a year-over-year basis compared to 3.3 percent in April 2022. Overall, Canada’s Labor Force Survey for May 2022 shows that the country’s unemployment rate hits another record-low and rise in wage growth.

While statistics show that full-time employment in Canada rose by 40,000 in May 2022, part-time job went down by 96,000. The employment of women was up by around 58 and men at a slight decline of approximately 18. The total hours worked in May 2022 was 634 million hours or 0.3 percent, which is less than two million hours compared to April 2022.

Focusing on the employment rate by province, statistics show that Alberta had the highest employment concentration with a 4.1 percent increase (28,000 to 92,0000) compared to pre-Covid years. Prince Edward Island, Newfoundland and Labrador, and British Columbia also have a 4.6 percent, 3.8 percent, and 3.7 percent employment increase compared to pre-Covid years.

Regarding the industry, the services sector gained 81,000 more jobs as accommodation & food services added 20,000 job positions in May 2022. Retail & trade added 34,000, educational services added 24,000, and professional, scientific and technical jobs rose by 21,000. On the other hand, the transportation and warehouse industry lost 25,000 jobs.

Long-term unemployment or people searching for a job or who have been on a temporary layoff for at least 27 weeks accounted for 19.7 percent of the total unemployment in May 2022.

Key Implications of Canada’s Unemployment Rate as of May 2022

Without a doubt, Canadian employment bounced back in May 2022 as it is becoming more noticeable how Canadians are going back to a more normal life setup. As job vacancy rates rise at record levels, the Canadian economy is operating beyond full employment.

As more people are employed, and wages continue to increase, the strength in domestic demand is hoped to be sufficient to keep inflation under control.

Welcoming Women Back in the Workplace

As mentioned, women's employment brought about the decline in Canada’s unemployment rate, especially in May 2022. Rafael Gomez, director of the Centre for Industrial Relations and Human Resources at the University of Toronto, observes that since schools have been able to stay open on a more consistent basis, women who are the primary caregiver in families have more freedom to rejoin the workforce. They were the ones who filled the job openings in the service sectors hard hit by the pandemic.

However, economists at the Labour Market Information Council (LMIC) published a report about women’s return to the Canadian workforce in March 2022 and note that it is too early to say whether the job figures recorded in May 2022 are a fulsome recovery. For LMIC economist Brittany Feor, the major uncertainties are the future of work and whether hybrid or remote work setup is here to stay. For Feor, changes in work setup may either limit or add to women's freedom to juggle secular work and family responsibilities.

Indeed, the future is still unknown regarding Canada’s unemployment rate. However, it is still hoped that as June ends, more jobs will open to lessen the unemployment rate in the country further.

RemitBee: Your Partner in Sending Money Abroad

Suppose you are an immigrant in Canada working to provide a brighter future for your family back home or a Canadian businessman paying your freelancers abroad; you should know that RemitBee is the best money transfer service provider in Canada. We give our customers the most competitive exchange rates for you to maximize your money’s potential. We will waive your transfer fee when you send at least $500 in one transaction! What are you waiting for? Experience our fast, reliable, safe money remittance and currency exchange services.

Sign up now

Other articles in Canada Job Search