It appears that Canada’s economic recovery efforts continue to be stalled amid the recent surge in coronavirus cases. According to the latest Statistics Canada Labour Force Survey, the unemployment rate dropped by 0.1% to 8.9%, as Canada’s employment levels rose by 84,000 in October.
The slowdown in the labour market recovery has become apparent after the average 2.7% monthly increase in employment levels observed since May came to a sudden halt in October, with employment only increasing by a mere 0.5%. Likewise, the unemployment rate remains little changed from September, suggesting that the surge in job gains over the summer failed to materialize with the change in seasons. In fact, long-term unemployment rose by 50.7% in October, following an increase of 36.2% in September, with more than half of those households reporting difficulty in meeting necessary expenses.
The slight improvement in job gains was also uneven across provinces and sectors. although employment increased in all but three provinces, the recent introductions of additional public health restrictions in some regions across Canada were only partially reflected in the Labour Force Survey as of October 11 to 17. With respect to employment relative to pre-pandemic February, Newfoundland and Labrador, Manitoba, and New Brunswick each recorded employment levels of (-0.5%), (-2.1%), and (-2.3%), respectively.
The tightening of public health measures in some regions also had an effect on the recovery efforts in certain sectors. The accommodation and food services industry saw employment levels fall in October after experiencing considerable monthly increases since April. Likewise, the construction, transportation, and warehousing industries have yet to recover to their pre-pandemic levels, while the professional, scientific and technical services, wholesale trade, and educational services sectors have all surpassed their February levels.
Information for this briefing was found via Statistics Canada. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.