Part 3 – Region of Peel

Peel's Labour Market

Labour force and employment

Labour market improvements in Peel continued in 2016

In 2016 and as anticipated, broad changes in Peel’s labour market remained positive as reflected in the changes in key labour market indicators. The total labour force in Peel, (which describes the total number of Peel residents who were in the labour market, working or looking for work), increased by 4.5 per cent in 2016 to reach 854,900 positions. During the same time period, total employed labour force (total employment) or residents who were successful in finding work, increased by a slightly faster pace of 5.0 per cent to reach 792,600 positions.

 Peel’s labour market in eight years

The decline in the unemployment rate in Peel in 2016 was the result of reduction in rates in both the youth (15 – 24 years) and adult (25 years and over) segments of the market. Between 2015 and 2016, the annual average unemployment rate for youth declined by 0.8 percentage points to reach 16.1 per cent; the lowest rate since 2011. Peel’s youth unemployment rate fell in 2016 as the total employment for youth grew by 3.2 per cent, a greater pace of growth than the 2.3 per cent increase in youth entering the labour market in search of work

The unemployment rate for adults also declined, falling from 6.1 per cent in 2015 to 5.8 per cent in 2016, also reflecting a greater level of success in finding work relative to the increase in the number of persons entering the labour market in search of work. At 5.8 per cent, the unemployment rate for adults in 2016 was the lowest rate recorded in Peel since a rate of 5.5 per cent recorded in 2008.

Alongside the increase in employment and the reduction in Peel’s unemployment rate, there were improvements in another key labour market indicator in Peel in 2016. Peel’s employment rate (the proportion of working age population who are employed) increased from 63.3 per cent in 2015 to 63.6 per cent in 2016. Peel’s participation rate (the proportion of working age population who are in the labour market) remained steady at 68.6 per cent indicating that the rate at which Peel’s residents joined the labour market in 2016 was similar to the rate of increase in Peel’s working age population.

Employment by type

In Peel’s labour market, full-time employment accounts for approximately 85.0 per cent of total employment on average while part-time employment accounts for about 15.0 per cent. In 2016, both types of employment increased. Total full-time employment rose 4.4 per cent, or by 27,900 positions to approximately 666,300 persons. Total part-time employment grew by 8.8 per cent during the same time period or by 10,200 positions to approximately 126,400 positions.


Sectoral employment

In 2016, both the goods producing and service sectors benefitted from the growth in employment. Employment in the goods producing sector led growth, up by 11.8 per cent or by about 17,900 positions. This brought the total number of Peel residents employed in the goods producing sector to 169,000. Total employment in the larger service sector also grew to contribute to the higher employment level observed in Peel in 2016. The number of Peel residents working in the service sector in 2016 stood at 623,600, up 3.3 per cent relative to 2015.  

In 2016, the total number of persons employed in the goods producing sector increased at over three times the pace of growth in the service sector. As a result, the share of employment accounted for by the goods producing sector increased from 20.0 per cent in 2015 to 21.3 per cent in 2016.  The share of persons employed in the services shrank by similar margins from 80 per cent in 2015 to 78.7 per cent in 2016. The shift observed in 2016 departed from the longer term trend observed in Peel where the service sector has been increasing its share of Peel’s employed labour force.

Employment by permanence

Compared with 2015, the number of Peel’s residents employed in permanent positions in 2016 increased by 7.7 per cent, while those employed in temporary positions declined by 1.8 per cent. Consistent with this, there was a slight increase (from 86.6 per cent in 2015 to 87.6 per cent in 2016) in the proportion of total residents employed in permanent positions. The proportion of those who were employed in temporary positions fell from 13.4 per cent to 12.4 per cent respectively over the same period.

The change in 2016 represented a positive shift away from recent trends in Peel’s labour market where average growth was being driven by more precarious type employment categories. Over the period (2006–2015), the increase in temporary employment at 47.1 per cent was more than twice the 16.9 per cent growth registered in permanent employment category. The main source of growth in temporary employment over the period was Term and Contract Employment, which increased by 91.2 per cent over the period.

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