Labour force numbers slip in April as provinces deal with third COVID wave
The latest labour force survey data issued by Statistics Canada shows a drop in employment of 1.1 percent nationally, and an increase of 0.6 percent in the national unemployment rate.
The data for the survey was collected during the week of April 11 to 17, at a time when several provinces had tightened public-health restrictions to control the third wave of the COVID-19 pandemic.
In Ontario, for example, the provincial government enacted a province-wide stay-at-home order on April 8. British Columbia was also under restrictions as of March 30, while stricter public health measures were also re-instated in many parts of Quebec.
Employment fell by 207,000 (-1.1 percent) in April, with the majority of the decline occurring in Ontario and British Columbia, and in those industries most affected by stricter public-health restrictions. Those industries included retail trade (-84,000), accommodation and food services (-59,000), and information, culture and recreation (-26,000). Employment also declined on a seasonally adjusted basis in educational services (-36,000), as schools in Ontario were closed because of the delayed March break.
Industries where many activities can be performed remotely were little affected by the new restrictions. Indeed, employment increased in public administration (+15,000), professional, scientific and technical services (+15,000), and finance, insurance and real estate (+15,000).
The number of people working in goods-producing industries was little changed in April.
Construction shed 12,700 jobs, or 0.9 percent of its workforce in April. This came after three consecutive months of gains. Construction’s total labour force now stands at 1.455 million, which is just 39,000 workers shy of its pre-pandemic level.
“April’s Labour Force Survey shows the impact that tightening COVID-19 measures are having on employment in Canada,” said Liam Daly, an economist with the Conference Board of Canada. “The third wave of the pandemic dealt a heavy blow to jobs in Ontario, with schools and stores forced to close. However, with the rollout of vaccines underway, we expect employment to bounce back as we have seen in the past once restrictions are eased. That said, since the survey was conducted, the situation in provinces such as Alberta has deteriorated and this will likely be reflected in next month’s results.”
Fewer people working in Ontario and British Columbia
Following gains over the previous two months, employment in Ontario fell 153,000 (-2.1 percent) in April, mostly in full-time work.
As restrictions tightened with a stay-at-home order and lockdowns across the province, notable employment declines were seen in retail trade, accommodation and food services, and information, culture and recreation. In Toronto, which was already in strict lockdown prior to April, employment declined by 53,000 (-1.6 percent). The Ontario unemployment rate rose 1.5 percentage points to 9.0 percent, with people on temporary layoff and job searchers both contributing to a rise in unemployment.
"Employment in Ontario decreased by 152,700 in April. Driven by new, more contagious variants, the third wave of the COVID-19 pandemic continues to create unprecedented challenges for individuals, families and businesses across the province,” said Vic Fedeli, Minister of Economic Development, Job Creation and Trade. “We are not through the pandemic crisis and last month’s numbers remind us how important it is to stay focused on our plan to protect the health of Ontarians and their jobs. But we can see light at the end of the tunnel.”
Ontario has been a leading driver of changing labour market conditions in recent months. While the province represents approximately 40 percent of total employment, it has accounted for at least 60 percent of the net national employment change in three of the past four months.