Quebec City Region adds 12,800 jobs in the first quarterCommentary

• The Quebec City census metropolitan area (CMA) added 12,800 jobs in the first quarter of 2014 compared with the last quarter of 2013.
• Quebec City notched the second-best performance in Canada after Vancouver (+14,100 jobs). It was the region’s best start to the year since 2005 (+11,400 jobs).
• Unemployment stood at 4.1% in Quebec City in the first quarter, down from 4.7% at the end of December 2013. This was the second-lowest rate in Canada after Regina (3.7%).
• The Quebec City metropolitan region also turned in a strong performance in March, with a monthly gain of 2,900 jobs.
• In the province of Quebec, the total number of jobs rose by 15,100 from February to March. Unemployment dropped to 7.6% in March, down from 7.8% the month before.

Commentary

This outstanding start to the year was primarily driven by the service sector and manufacturing. The construction industry remains fairly calm in terms of hiring, although the arrival of spring could see a gradual increase in the need for workers on residential, non-residential and road projects. In addition, the data for the most recent quarter would appear to confirm hiring gains among young people in the 15-to-24 age group, in contrast with a slight drop in 2013.

This strong performance bodes well for the region and the spring could prolong this situation further. However, the low unemployment rate stands as a reminder that the available potential labour pool continues to shrink.

Louis Gagnon
Senior Economist
Quebec International