Canada’s Unemployment Rate Jumps to 8.2% in May Amid Tighter Covid-19 Restrictions
Canada’s labour market continued to lose momentum last month, as widespread Covid-19 restrictions further hindering business activity.
According to data published by Statistics Canada on Friday, the country shed 68,000 jobs in May, following a loss of 207,100 positions in the month prior. This caused the unemployment rate to jump from 8.1% to 8.2%. The less than dismal employment report coincides with the tightening of public health restrictions across several key provinces, namely in Ontario, Manitoba, and Alberta.
The majority of May’s labour market contraction was concentrated in part-time work, which declined by 54,000 positions. Full-time employment, on the other hand, remained relatively unchanged last month, following a decline of 129,000 positions in April. Similarly, the number of Canadians working from home also remained little changed last month, and stood at 5.1 million.
The month of May saw employment levels fall across several industries, particularly those that have faced unprecedented struggles throughout the pandemic. The retail trade sector shed 29,000 positions, and albeit employment in accommodation and food services was relatively unchanged last month, the sector still remains one-third below pre-pandemic levels.
For the first time since April 2020, employment in manufacturing suffered a decline, falling by 2% last month. Likewise, Canada’s construction sector shed 16,000 positions, as tighter public health restrictions in Ontario affected non-essential construction.
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.
