The employment rate also rose by 0.6 percentage points to 55.2 per cent, with employment increasing by 3,200 people and labour force growing by 3,800.
Compared to April, the growth in the number of people entering the workforce is a positive indicator, said Thalia Semplonius, coexecutive director of the collective. While the shift caused a slight jump in the official number of unemployed people, overall the report was good news.
“It just simply means that they’re actively seeking work,” she said. “I’d say those are encouraging signs when we start looking at the summer coming up.”
Youth employment
While youth employment and participation lagged in the first half of the year, Semplonius said spring numbers provide a strong indicator of where the market is heading — and May showed promising trends.
Month-over-month, youth unemployment increased one percentage point in May to 13.4 per cent but participation jumped 2.3 percentage points to 61.1 month-over-month. Youth employment also rose 1.4 percentage points to 52.9 per cent.
The numbers also show improvement from the same time last year, when youth unemployment sat at 18 per cent and the employment rate was at 50.1 per cent.
“If you’re seeing unemployment going up alongside increased participation and employment, it’s showing that youth are trying to actively engage in the labour market. They’re starting to look for work,” she said.
“These levels are just still lower than what we’ve seen in the past. But the general trend is a positive thing.”
Post-secondary students entered the labour force last month, and high school students are expected to follow in June and July, which could trigger additional shifts. Semplonius hopes to see participation and employment rates continue to move in a positive direction and said the market already has a head start.
“On the employment front, those rates this year are looking better than they were last year so hopefully we continue to see that improvement.”
Compared to historical trends, the overall market is lagging, but Semplonius said it continues to be youth driving down the numbers. She said participation and employment rates for the core working-age groups, those aged 25 to 54, are higher than what would typically be expected in May.
Gender gap
The unemployment rate increased slightly for both men and women, rising 0.1 percentage point for men to 6.9 per cent and 0.2 percentage points for women to 6.1 per cent. Meanwhile, participation increased 0.8 percentage points for men to 64.2 per cent and 0.6 percentage points for women to 54.2 per cent.
Employment rates also rose, ticking up 0.7 percentage points for men to 59.8 per cent and 0.5 percentage points for women to 50.9 per cent.
“It still seems to be challenges around youth engaging in the labour market that’s kind of pulling those overall trends a little lower,” said Semplonius.
After a decline in job postings last month, the workforce reported strengthening labour demand in May, with 3,715 new job postings, a 9.2 per cent increase from April. Retail trade (720), education services (535), accommodation and food services (464) and health care and social assistance (443) saw the highest volumes of new postings.
As Niagara ramps up for summer, Semplonius said observers want to see online job postings increase, particularly in areas closely tied to tourism “which is happening.”
“It’s still subdued compared to the past however we are higher than last year so that’s a positive indicator. Last year’s job demand was incredibly low,” she said. “Even while we’re still in this economic uncertainty around us, employers are still continuing to recruit.”
Where’s the growth?
Employment growth was driven by a 3.1 per cent rise in the goods-producing sector and a one per cent increase in the services-producing sector. Monthly industry growth was strongest in information, culture and recreation, wholesale and retail trade, education services and construction.
Conversely, Niagara saw declines in agriculture, finance and insurance, transportation and warehousing and health care and social assistance.
Semplonius said the collective is looking closer at industry employment to determine where growth is and whether those increases are in sectors where seasonal spikes are typically expected.
“How does that translate into folks who might be finding employment in those areas,” she said.