(Bloomberg) -- Canada's job market had a stellar 2017, producing some of the strongest employment numbers the nation has seen in years.
Employment increased by 422,500, the biggest annual gain since 2002 and the sixth best over the past 40 years. The last three months were particularly spectacular, when almost half of the jobs were generated.
This isn't supposed to happen in an aging society like Canada's with a slow-growing labor force. So what's going on?
1. Growing Labor Force
The number of people entering Canada's job market grew last year at what is considered its long-term trend of just over 1 percent. In absolute terms, that's an increase of more than 200,000 new workers for the economy, the bulk of whom found jobs. That would account for almost half of the employment gain.
2. Thinning Unemployment Rolls
So who is getting the other half of the jobs gain? More unemployed people are now finding work, it turns out.
People fell off jobless rolls at near unprecedented levels. Unemployment levels fell to 1.13 million in December, which is the lowest since 2008. The 211,200 drop in the number of jobless workers last year was the second-largest annual decline in four decades and brought the jobless rate -- at 5.7 percent -- to the lowest since at least 1976.
That was a big surprise. Economists surveyed by Bloomberg at the beginning of 2017 forecast the unemployment rate at a full percentage point higher.
3. Age and Gender
Who are these people getting jobs?
Unemployment fell across the board by age and gender, with the biggest declines among 15 to 19 year-olds who saw jobless levels drop 27 percent (44,400 fewer unemployed) over the past 12 months. The number of unemployed between the ages of 25 and 54, dropped by 121,900 or 17 percent.
4. Quebec Leads
Where do they live?
Quebec recorded the biggest decline in unemployment levels (down 72,000), followed by Ontario. Ontario recorded the biggest increase in total employment because its labor force grew the most.
5. Manufacturing Comeback
What occupations are benefiting?
There were a lot fewer unemployed factory workers in 2017, whose ranks dropped by nearly 30,000.
While every major industry classification saw a drop in unemployment, the manufacturing decline led all sectors -- reflecting a comeback year for the sector. Manufacturers added 85,700 new jobs last year, the strongest since 2002.
To contact the reporter on this story: Theophilos Argitis in Ottawa at targitis@bloomberg.net.
To contact the editors responsible for this story: David Scanlan at dscanlan@bloomberg.net, Stephen Wicary, Greg Quinn
©2018 Bloomberg L.P.
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