Employment made significant gains across the country in February, but growth in construction stagnated for the second consecutive month.

Data from Statistics Canada’s February Labour Force Survey (LFS) shows an increase in overall employment of 259,000 (1.4 percent) for the month. This, after the rate had dropped by 266,000 over the previous two months. The national unemployment rate fell 1.2 percentage points to 8.2 percent in February, the lowest rate since March 2020.

The news comes as many provinces lifted or eased the public-health restrictions they had put in place in late December. Restrictions were eased to varying degrees in Quebec, Alberta, New Brunswick and Nova Scotia on February 8, although a curfew remained in effect in Quebec. In Ontario, previous requirements were lifted for many regions on February 10 and 15, while the Toronto, Peel, York and North Bay Parry Sound health regions remained under stay-at-home orders through the reference week. Various measures were eased in Manitoba on February 12.

In contrast, Newfoundland and Labrador re-introduced a lockdown on February 12, requiring the widespread closure of non-essential businesses and services.

Statistics Canada conducted its LFS survey during the week of February 14 to 20.

Most of February’s overall employment gains were concentrated in Quebec and Ontario. The gain reflected a rebound in industries—particularly retail trade and accommodation and food services—where public health measures were strengthened in December and then eased prior to the February LFS reference week.

February marked a year of turmoil in Canada’s labour market. Compared with 12 months earlier, there were 599,000 (-3.1 percent) fewer people employed in February, and 406,000 (+50.0 percent) more people working less than half of their usual hours. The number of workers affected by the COVID-19 economic shutdown peaked at 5.5 million in April 2020, including a drop in employment of 3.0 million and an increase in COVID-related absences from work of 2.5 million.

Among this good news, construction continued its slow start to the year. After starting off the year with a 4 percent decline in employment in January, the industry added just 800 jobs in February—an increase of less than 1 percent. National industry employment figures now stand at 1.329 million, 4 percent less than in February 2020.

Those provinces that shed the most jobs in February included Newfoundland and Labrador (-17.6 percent), Nova Scotia (-7.8 percent), Prince Edward Island (-1.8 percent) and British Columbia (-1.3 percent). New Brunswick, Ontario and Alberta also experienced declines in employment—but of less than 1 percent each.

Compared with a year ago, Quebec (+4.0 percent), Alberta (+2 percent), Manitoba (+2 percent) and Saskatchewan (+1 percent) were the only provinces to record a year over year rises in construction employment. Employment in Ontario dropped 6 percent compared with February 2020.

There may be good news on the horizon for construction. Both the value of building permits and the value of construction investment reached record highs in January, with a great deal of the growth in both occurring in the residential sector.