Saturday, August 2, 2025

Latest

Canada’s Unemployment Rate Jumped to 9.4% in January Amid Tougher Covid-19 Restrictions

Employment levels in Canada took a nosedive in January, after numerous regions imposed stricter lockdowns and shut down close-contact businesses, erasing months of job gains.

According to the Statistics Canada’s Labour Force Survey, the economy lost a total of 212,800 jobs in January, increasing the unemployment rate by 0.4% to 9.4%. A Bloomberg survey of economists had forecast a job decline of only 40,000 positions, and an unemployment rate of 8.9%. The introduction of additional restrictions including curfews and stay-at-home orders across several of Canada’s largest provinces— namely Ontario and Quebec— lead to extensive layoffs that have stalled the current economic recovery.

Overall employment levels declined by 1.2% in January, with a majority of the losses concentrated in Ontario and Quebec, with declines of 2.1% and 2.3%, respectively. In the meantime, employment rose in Prince Edward Island, Nova Scotia, Manitoba, and Alberta, and held steady in New Brunswick, Saskatchewan, and British Columbia. The January jobs decline follows a drop of 0.3% in December, and brings Canada’s employment level to the lowest since August 2020. The drop in unemployment was almost all concentrated in part-time work, with an overall decrease of 225,000 positions.

The sectors that were largely affected by the job losses were retail trade and accommodation and food services — both of which bore the strictest public health measures and employed the largest proportion of part-time workers. Retail trade saw an employment drop of 7.4%, while the accommodation and food services industry saw the fourth consecutive month of declines in January, falling by 8.2%.

Conversely however, a number of sectors that have a significant proportion of full-time employment— including finance, insurance, real estate, rental and leasing; and professional, scientific, and technical services— have achieved their pre-pandemic employment levels over the past several months, and remained unchanged in January. In the meantime, the number of Canadians that have reverted to working from home increased by 700,000 to a total of 5.4 million in January, exceeding the prior high of 5.1 million recored in April.

Canada’s labour force participation rate, which measures the number of individuals in the labour force (either employed or unemployed) as a percentage of the working age population, shrunk for the second consecutive month in January. The rate declined by 0.3% to 64.7%— the lowest rate since August. The gloomy labour force participation rate suggests that an increasing number of Canadians have been withdrawing from the job market all together, likely the result of worsening economic conditions.

However, despite what appear to be extensive losses in the labour market, optimistic forecasts regarding Canada’s 2021 economic recovery remain upbeat, given that the losses were largely concentrated in part-time positions spanning across only a few sectors.


Information for this briefing was found via Statistics Canada and Bloomberg. 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.

Video Articles

Why Gold’s Bull Run May Just Be Getting Started! | Peter Grandich

Tariffs Spark New Race for Critical Metals | Rob McEwen

Antimony Resources: The Bald Hill Project

Recommended

Tsunami Warnings Spread As Largest Quake Since 2011 Hits Russia

Northern Superior Intersects 1.75 g/t Gold Over 65.0 Metres At Philibert

Related News

Canada Halts Funding for Research Connected to Chinese Military and State Security Institutions

Just a few days after Prime Minister Justin Trudeau authorized the United States to shoot...

Wednesday, February 15, 2023, 02:18:00 PM

NATO Defense Spending Soars as Russian Threat Looms, but Some Allies Lag Behind

NATO Secretary-General Jens Stoltenberg announced on Monday that a record 23 out of NATO’s 32...

Saturday, June 22, 2024, 09:13:00 AM

Fitch: Canada’s Increasing Deficit will Pose Fiscal Consolidation Challenges Ahead

Despite the recent announcement of proroguing parliament in wake of a growing charity controversy, the...

Saturday, September 5, 2020, 01:45:00 PM

US Labour Market Shows Signs of Rebound as Unemployment Rate Falls to 8.4% in August

South of the border, it appears that the US labour market has been the subject...

Monday, September 7, 2020, 01:25:00 PM

Canadian Premiers Press Trudeau for Stronger Border Security

Canadian provincial leaders urged Prime Minister Justin Trudeau on Wednesday to strengthen border security and...

Monday, December 2, 2024, 02:04:00 PM