Construction adds jobs in January
Despite provincial lockdowns and the suspension of work on all non-essential projects, construction added jobs in January.
The latest Labour Force Survey (LFS) data released by Statistics Canada on February 5 shows that while the economy as a whole shed nearly 213,000 (-1.2 percent) jobs in January, construction added 39,000 (2.8 percent). Quebec and Alberta recorded significant jobs gains in January, while Ontario’s industry contracted.
The increase, says Statistics Canada, brought employment in the construction industry to within 3.9 percent of its February pre-pandemic level.
The decline in the overall jobs market brought employment to approximately 18.2 million—the lowest employment level since August. Losses were entirely in part-time work and were concentrated in the retail trade sectors in Quebec and Ontario—where lockdown measures have been place since December.
Compared with February 2020, employment was down 858,000 in January, while COVID-related absences from work were up 529,000. Among those who worked at least half their usual hours, the number working from home increased by nearly 700,000 to 5.4 million in January, surpassing the previous high of 5.1 million in April.
Meanwhile, the national unemployment rate increased 0.6 percentage points to 9.4 percent in January. This—the second consecutive monthly increase—brought the unemployment rate to its highest level since August.
In Ontario, employment dropped by 154,000 (-2.1 percent) in January—the first notable decline since May 2020. The unemployment rate rose 0.6 percentage points to 10.2 percent, driven in part by an increase in the number of people on temporary layoff (+38,000; +28.9 percent).
Ontario was in lockdown prior to the week of January 10 to 16 and a stay-at-home order was implemented during the LFS reference week. These restrictions are reflected in the composition of employment losses in the province, which were all in part-time work (-153,000; -12.0 percent), and largely in the retail trade, and accommodation and food services industries.
Ontario’s construction industry lost 4,200 jobs in January – a drop of 0.8 percent for the month. Compared with January 2020, industry employment is down more than 25,000, or 4.5 percent.
By April 2020, 5.5 million workers had been directly affected by the initial widespread COVID-19 economic shutdown. This resulted in a drop in employment of 3.0 million and an increase in COVID-related absences from work of 2.5 million.
In January, the equivalent number of affected workers was 1.4 million, including a decrease in employment of 858,000 and a COVID-related increase in absences of 529,000.