AUS
NZ
UK
CA
USA
IND
Summary
- Canada’s unemployment levels shot up by 0.6 percentage points to 9.4 per cent in January, the highest surge since August in 2020.
- As per Statistics Canada, employment was down by 1.2 per cent month-over-month (MoM) in January.
- The latest labour force study found that job losses in the month were concentrated in Quebec and Ontario’s retail market sectors and high among part-time employees.
As more Canadian regions extended their lockdown restrictions amid rising numbers of coronavirus infections, employment level dropped to its lowest in January 2021 since August last year. As per Statistics Canada, employment was down by 1.2 per cent month-over-month (MoM) in January.
Subsequently, Canada’s unemployment levels shot up by 0.6 percentage points to 9.4 per cent in January, the highest surge since August in 2020.
The latest labour force study, conducted between January 10 and 16, found that job losses in the month were concentrated in Quebec and Ontario’s retail market sectors and high among part-time employees.
Rise in Remote Employees, Furloughed & Job-hunting Canadians at Record High
January’s steep employment fall came after a marginal decline of 0.3 per cent MoM in December. As compared to the pre-pandemic times of February 2020, January’s employment figures were down by about 858,000, while lack of job due to COVID-19 was up by 529,000.
As lockdown measures tightened, the number of employees working from home also climbed. Among those who were able to work for at least half their general working hours, the number of remote employees rose to 5.4 million in January, topping the previous record of 5.1 million in April in 2020.
As for Canadians who have been job-hunting or on furlough for over 27 weeks, the numbers remained at a record high of 512,000 in the first month of 2021.
©Kalkine Group 2021
Job losses highly clustered in Central Canada
Employment losses were extremely concentrated in regions such as in Ontario and Quebec, where coronavirus cases were climbing, standing at a total of 251,000. StatCan noted that the provinces of Newfoundland and Labrador also recorded drop in employment in January.
Meanwhile, provinces of Alberta, Manitoba, Nova Scotia and Prince Edward Island saw a climb in employment for the month.
Sector-wise, employment fall was sharpest services-producing industries. While businesses focused in accommodation and food services saw a decline of 8.2 per cent MoM in January, retail trade recorded a drop of 7.4 per cent.
