Labour market stagnant
Erin has already commented that the tiny silver lining of 26,000 net new jobs in May covers a net loss of full-time jobs. In fact, if you compare this May to May 2013, we see that all of the net job gain in the past 12 months is part-time work too.
To look at the trends, I broke down employment growth since October 2008 into part-time and full-time jobs. This shows that full-time job growth has been pretty much stagnant since January 2013.
While we expect to see stronger growth in part time work earlier in a recovery, here we see the growth of part-time work accelerating again – over four years after the beginning of the recession.
The number of underemployed part-time workers (working part-time, wanting full-time hours) has remained elevated since the beginning of this recession. You can see from the graph that there was some easing in 2012, but with the recent increase in part-time work, the trend is moving upwards again.
This May there were over 1 million underemployed part-time workers in Canada, and a total of 2.9 million unemployed and underemployed workers (not seasonally adjusted). Nearly 1 million of those workers were under the age of 24.
Ontario workers, in particular, are having a hard time. The underemployment rate for Ontario (not seasonally adjusted) was 16.6% in May – 2 percentage points higher than the national average. That represents 550,000 unemployed and 735,000 underemployed Ontario workers.
And Tim Hudak plans to fix that by firing 100,000 public sector workers. I think we need a better plan.