Friday, February 10, 2006 Released at 7:00 a.m. Eastern time in The Daily

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Employment increased by 26,000 in January following a pause the month before. Although employment increased, the unemployment rate edged up 0.1 percentage points to 6.6% as more people entered the labour force in search of work.

Compared to 12 months ago, employment is up 1.7% (+269,000), slightly less than the rate of employment growth in the United States over the same period (+2.0%).

In January, the average hourly wage rate was up 3.4% from 12 months ago, well ahead of the most recent year-over-year increase in the Consumer Price Index of 2.2%. Alberta continued to lead the nation with an increase of 7.4% in the average hourly wage rate compared to 12 months ago.

More adult women working full time

Employment among adult women aged 25 and over increased by 35,000 in January, with strong gains in full time (+45,000). Their unemployment rate fell 0.2 percentage points to 5.4%. Over the past 12 months, employment gains for this group have totalled 112,000 (+1.8%), entirely the result of full-time job growth.

Although little changed in January, there were 106,000 (+1.5%) more adult men working compared to 12 months ago. Just under three-quarters of this increase was in full-time work.

In January, there were 22,000 added part-time jobs among youths. However, this was offset by a similar decline in full time, leaving the year-over-year increase in youth employment at 2.1% or 51,000. More youths entered the labour market in January in search of work, pushing their unemployment rate up 0.5 percentage points to 12.4%.

More jobs in natural resources while manufacturing continues to lose ground

Employment in natural resources rose strongly, up 12,000 in January, with the largest increases occurring in Alberta and British Columbia. Employment in this industry has shown a strong upward trend with gains totalling 19.2% since the end of 2002, fuelled by strength in Alberta's oil and gas sector.

Public administration rose by 15,000 in January, with gains at the federal and municipal level. Temporary hiring for the recent federal election contributed to added employment in the industry.

The downward trend in the number of factory jobs continued in January with a decline of 42,000, mostly in Ontario. Since the end of 2002, employment in manufacturing has fallen by 8.2%. In January, the decline was concentrated in furniture and related products as well as in motor vehicle and parts. According to the most recent Business Conditions Survey for manufacturing industries, manufacturers were slightly more cautious in their outlook for the first quarter of 2006. Fewer new orders, a strong Canadian dollar and continued competition from foreign imports were some of the challenges facing manufacturers in recent months.

In January, employment in the private sector edged down 16,000. There was a gain of 42,000 in the public sector, with the largest increases in public administration and educational services. Compared to January 2005, public sector employment has increased by 4.6%, led by strong gains in educational services. Over the same period, the number of self-employed has grown by 2.4% while the number of private-sector employees edged up 0.7%.

Alberta labour market remains robust

Employment in Alberta increased by 10,000 in January, with gains in trade, construction, public administration as well as in natural resources. This latter sector continues to provide much of the spark in employment for the province as it has increased by 35.3% since the end of 2002. Over the past year, there have also been gains in professional, scientific and technical services (+22.3%), likely the result of strength related to the oil patch. In January, the unemployment rate in the province fell by 0.7 percentage points to 3.5%, the lowest in almost 25 years.

In Ontario, employment edged up 16,000 in January as an increase in part-time jobs was somewhat offset by declines in full time, bringing total gains from 12 months ago to 122,000 (+1.9%). The unemployment rate rose by 0.3 percentage points in January to 6.5% as more people entered the labour force in search of work. Manufacturing continued to shed jobs in January (-33,000), bringing total losses since the end of 2002 to 93,000. In January, losses were spread across a number of manufacturing sectors.

Although little changed in January, employment in Quebec has increased by 78,000 (+2.1%) since May 2005 when the upward trend began. However, manufacturing employment has been weak with losses over the last three years totalling 71,000.

In January, employment in New Brunswick continued to increase (+3,000), the third consecutive monthly gain. The unemployment rate fell 0.7 percentage points to 8.9%. Recent employment increases more than offset losses earlier in the year, leaving gains since January 2005 at 2.5%, with strength coming from a number of industries.

Employment in Manitoba was up by 3,000 in January, bringing job growth in the province to 1.1% from 12 months ago. The unemployment rate edged up 0.1 percentage points to 4.3% due to an increase in the number of people entering the labour force.

In Saskatchewan, employment increased by 3,000 in January, causing the unemployment rate to edge down 0.1 percentage points to 5.2%. Despite more jobs in January, losses earlier in 2005 leave employment in the province slightly below the level from a year ago.

There was little change in employment in the other provinces in January.

Available on CANSIM: tables 282-0001 to 282-0042, 282-0047 to 282-0064 and 282-0069 to 282-0099.

Definitions, data sources and methods: survey number 3701.

Available at 7:00 a.m. on our Web site. From the home page, choose Today's news releases from The Daily, then Latest Labour Force Survey.

A more detailed summary, Labour Force Information, is available today for the week ending January 21 (71-001-XIE, $9/$84).

Data tables are also available in the Canadian Statistics module of our Web site.

The next release of the Labour Force Survey will be on Friday, March 10.

For general information or to order data, contact Client Services (1-866-873-8788; 613-951-4090; labour@statcan.ca). To enquire about the concepts, methods or data quality of this release, contact Vincent Ferrao (613-951-4750), Danielle Zietsma (613-951-4243), Labour Statistics Division.