Canadian Economy Gains Nearly 1 Million Jobs, Unemployment Level Falls to 12.3% in June
As most of Canada eases public health restrictions and allows for the reopening of various workplaces and businesses, many more Canadians are beginning to return to work.
According to the latest Labour Force Survey (LFS) released by Service Canada, the week of June 14 to June 20 saw the increase of an additional 953,000 jobs, thus bringing the unemployment rate down from 13.7% in May to 12.3%. However, the rate still remains significantly high compared to February’s rate of only 5.6%. With the combined gains of both May and June, more than 40% of jobs have been recovered since the beginning of the pandemic, which saw a reduction of approximately 3 million jobs.
Simultaneously with the sudden economic restrictions imposed during the onset of the pandemic, the number of Canadians participating in the labour force decreased by 1.7 million between February and April. By June however, the labour force participation rate rose to 63.8% in June, but still remains 1.7% below February’s level.
The LFS reported job gains across all provinces – even Ontario, which continues to be under stronger mitigation measures due to sustainably higher infection rates. Ontario saw an increase of 378,000 additional jobs, meanwhile Quebec saw employment gains of 248,000 more jobs. Comparatively, the Western provinces including Alberta, Saskatchewan, and Manitoba reported job increases of 92,000, 30,000, and 29,000, respectively.
As social distancing guidelines and restrictions on large gatherings continue to be in place across Canada, many workplaces had to introduce various adaptations in order to comply with public health orders. Industries such as accommodation and food services and retail were the hardest hit by the pandemic predominantly because such sectors revolve around significant interaction with consumers. Nonetheless, substantial employment gains were recorded for the food and accommodation sector, with an increase of 164,000, meanwhile retail trade saw an increase of 184,000 new jobs in June.
Moreover, employment in education services increased by 57,000 between April and June, meanwhile employment gains in healthcare and social assistance increased by 121,000. However, the largest rebounds were reported in the goods-producing industries. Although the construction and manufacturing industries reported significant losses during the height of the pandemic, the month of June saw an overall increase of 157,000 jobs in the construction sector since April, and job gains in the manufacturing industry saw an overall increase of 160,000 in both May and June.
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.
