Sharp increase in the unemployment rate in july 2024

Highlights - July 2024

Data visualization

Employment evolution over one year

^{Sources: Statistics Canada, Table 14-10-0380-01, and Québec International.}

Overview of employment in major Canadian CMAs

Analysis

Employment decreased sharply in Québec City

Statistics Canada’s Labour Force Survey (LFS) shows a third consecutive drop in employment in July 2024. This time, the Québec City CMA registered a drop of 7,100 jobs compared to June (-1.5%). The other indicators also declined over the same period, including a loss of 4,500 people in the labour force. This follows the same dynamic as in the previous month and it is the strongest decline since the beginning of the year.  

In the country as a whole, the labour market also showed signs of slowing down in the past few months, although with a small variation in July. In the province of Quebec, employment dropped slightly (-0.2%), while it remained unchanged at the national level. 

Increased unemployment rate

Data shows that the unemployment rate grew in the Québec City CMA in July 2024, reaching 3.8%. The region had not seen a similar rate since September 2021. Note that this rate is comparable to the levels registered before the pandemic. As per usual, the CMA maintained a much lower unemployment rate than the Canadian average, registering the 5^th lowest rate in the country, behind Saguenay (3.0%), Thunder Bay (3.0%), Peterborough (3.2%), and Victoria (3.6%). 

Stable annual results

Despite the decline in employment in July, cumulative growth over the past 12 months reached 3,400 jobs (+0.8%) in the region. During this period, the sectors of business services, education, and public administration registered the highest increases in employment. However, the number of jobs decreased in the finance and insurance services, information, and wholesale and retail trade sectors. 

Overall, the Québec City CMA’s labour market seems to be rebalancing compared to the previous year, with a growing unemployment rate and a lower number of vacancies. Consistent with the expectations of stagnation for 2024, past months’ results show a slowdown in employment. It is worth noting, however, that the unemployment rate remains low and that the labour market participation indicators maintain good levels. In fact, the participation rate (66.1%) and employment rate (63.6%) remain at similar levels to those of one year ago (66.4% and 64.2%, respectively).

Alexis Mc Clish
Économiste

Québec International