Canada : more boomers and young people out of job

Employment in Canada increased for a 13th consecutive year in 2005, the longest stretch of employment gains since the large-scale increases of the 1960s and 1970s. Over the last 13 years, employment growth has averaged 2.0% per year, according to a new report on Canada’s labour market. Despite the fact that jobs were readily available last year, people took themselves out of the labour market, leading to a rapid tightening of labour market conditions. About 17.3 million people were in the labour market last year, 67.2% of the working-age population, a decline of 0.3 percentage points from 2004. Previously, the participation rate had increased every year between 1996 and 2003, and had held steady in 2004. Much of the decline in 2005 was the result of ageing baby boomers, adult women and young people leaving the labour force. With demand for labour strong and supply conditions tightening, the unemployment rate fell in 2005, hitting 6.8%, the lowest annual unemployment rate since 1976. The report also pointed to other key developments in the labour market during the past few years. For example, the employment situation for older workers aged 55 and over has become increasingly brighter. Last year, 29.9% of this