Canada’s labour market is slowly returning to pre-pandemic levels.

The latest Labour Force Survey released by Statistics Canada shows an increase of 419,000 jobs across the country in July. Combined with the jobs gains in May and June, the labour force is within 1.3 million jobs of February’s high water mark.

The number of Canadians who were employed but worked less than half their usual hours for reasons likely related to COVID-19 dropped by 412,000 (-18.8 percent) in July. Combined with declines recorded in May and June, this left COVID-related absences from work at just under 1 million above February levels.

The total number of workers affected by the pandemic—who were either out of work or who reported absences from work—stood at 2.3 million by mid-July. That was down significantly from the 5.5 million who were displaced from work at the depth of the pandemic.

The unemployment rate was 10.9 percent in July, falling 1.4 percentage points for the second consecutive month and down from a record high of 13.7 percent in May. The unemployment rate was 5.6 percent in February.

Construction employment is very much on the path back to recovery. After reporting heavy losses in April followed by recoveries in May and June, the industry added 34,000 jobs in July. That brings construction’s total employment to 1.364 million, or 91.6 percent of its February level.

In Ontario, employment rose by 151,000 (2.2 percent) in July, building on an increase of 378,000 in June and bringing employment to 91.7 percent of its pre-pandemic February level. The initial easing of COVID-19 restrictions occurred later in Ontario than in most other provinces. Additional easing was introduced in most regions of the province on July 17, at the end of the Labour Force Survey reference week.

Gains in Ontario employment in July were nearly all in part-time work, while the increase in June was in both full-time and part-time. The proportion of people who were employed but worked less than half of their usual hours for reasons likely related to COVID-19 was 10.9 percent in July, down from 14.1 percent in June. The unemployment rate in Ontario fell by 0.9 percentage points to 11.3 percent in July.

Employment in Toronto increased by 2.2 percent in July. This was the same rate of increase as the province, despite the loosening of the COVID-19 restrictions occurring later in the provincial capital than in most other regions. Employment in Toronto reached 89.9 percent of its February level.

Ontario’s Economic Development Minister Vic Fedeli called the provincial growth figures a sign that the economy is getting back on track.

“These new employment numbers are so much more than a statistic: they represent business owners and workers who are back on the job, families getting back on their feet, and communities beginning to flourish once again,” he said.

“While these numbers are an indication that our economy is continuing to find its footing, the road of recovery will still be a long and difficult one. As the province gets back on the job, we will continue working with businesses to develop a comprehensive safety plan to better protect workers, customers and clients.”