The Weekly Review, August 5 to 9, 2024

Canada’s merchandise trade balance with the world moves to a surplus in June 2024

In June, Canada's merchandise exports increased 5.5%, while imports rose 1.9%. Consequently, after three consecutive monthly deficits, Canada's merchandise trade balance with the world moved from a deficit of $1.6 billion in May to a surplus of $638 million in June. Overall, exports increased in 9 of the 11 product sections, as did imports.

Source: Canadian international merchandise trade, June 2024

The aging of the labour force should stabilize once baby boomers finish retiring

The Canadian labour force, like the population in general, has aged in recent decades. Since the early 2000s, the proportion of people aged 55 years and older in the labour force has doubled, from 10.9% in 2001 to 22.4% in 2021. Much of the transition to an older labour force is already well underway and as a result, the proportion of the labour force aged 55 years and older should stabilize over the next few years. According to the reference scenario, the proportion of people aged 55 years and older in the labour force would remain below 22.0% until 2036 and then would reach 23.1% in 2041.

Source: Study: Canadian labour force: What happens after the baby boomers retire?

Unemployment remains steady in July 2024

Employment was little changed in July (-2,800; -0.0%), while the employment rate fell 0.2 percentage points to 60.9%. The unemployment rate was unchanged at 6.4%. In July, employment decreased among women (-41,000; -2.6%) and men (-15,000; -0.8%) aged 55 to 64. Employment also fell among young men aged 15 to 24 (-20,000; -1.5%), while it increased among men aged 25 to 54 (+48,000; +0.7%). Employment fell in wholesale and retail trade (-44,000; -1.5%) as well as in finance, insurance, real estate, rental and leasing (-15,000; -1.0%) in July. Employment increased in public administration (+20,000; +1.6%), transportation and warehousing (+15,000; +1.4%) and utilities (+6,200; +4.2%).

Source: Labour Force Survey, July 2024

Retail sales increase on an annual basis in May 2024

Retail sales reached $73.2 billion in May, an increase of 1.1% compared with the same month one year earlier. Higher sales were reported in 7 of the 18 commodity classes. The largest increase in dollar terms came from sales of food and beverages, which rose 4.2% in May 2024 compared with the same month in 2023. Sales of eggs and dairy products (+10.4%) led the gains in this commodity class in May 2024, followed by sales of cookies, confectionery, and snack foods (+9.1%).

Source: Retail Commodity Survey, May 2024

Rail transport prices increase, truck transport cheaper

For several decades, the intermodal shipping container has been the global standard for moving goods quickly and efficiently across all distances and, as its name suggests, by different modes of transportation. In July 2024, the price to move intermodal containers by rail increased 2.5% compared with July 2023. On the other hand, prices charged by the general freight trucking industry group, which transports a variety of commodities generally palletized and carried in a van trailer, box or container (including intermodal containers), decreased by 3.7% from March 2023 to March 2024.

Source: Containing the price of shipping