In June, Canada’s labour market showed signs of improvement, while job growth fell short of the third wave’s losses.
According to Statistics Canada’s Labour Force Survey, employment increased by 231,000 last month. During the week of June 13 to 19, the data indicated the state of the Canadian labour market.
A total of 275,000 jobs were lost in Canada in the previous two months. Following a slowdown between November and January, employment in Canada was on the rise. With the implementation of third-wave limitations in March, employment declined once further in April and May.
In the weeks running up to the reference week, restrictions began to loosen. In eight of Canada’s provinces, many restaurants, retail stores, personal care services, and other leisure activities had reopened.
On June 2, Ontario, for example, lifted its stay-at-home directive. Indoor dining, gyms, and personal care facilities were closed during the reference week, although outside dining and certain non-essential shopping were permitted.
Despite these constraints, Ontario was one of four provinces that had job growth in June. B.C., Quebec, and Nova Scotia were the others.
In June, there was an increase in the number of immigrants working.
Immigrants have a slower rate of reintegration. In June, the employment rate for immigrants in Canada for more than five years was at 57 percent, down two percentage points from February 2020. Compared to Canadian-born employees, who were employed at a rate of around 60%, a drop of just over 1% over the same time period.
Recent immigrants, those who arrived within the last five years, have a higher employment rate. As a result of the coronavirus-related travel restrictions, the number of newcomers has decreased. The number of very recent immigrants fell by over 12% in the three months ending in June, while their employment fell by nearly 7%. Because their population is declining faster than their employment, this group’s employment rate was over 68 percent in June, up nearly four percentage points from pre-pandemic levels.
Keeping an eye on the economic recovery
The employment rate is derived by dividing the number of individuals employed by the total number of people over the age of 15. As a result, one of the challenge in understanding Canadian labour market developments is to evaluate how employment changes compare to population changes.
Between February 2020 and June 2021, Canada’s population increased by 334,000 people, or little more than 1%. To keep up with this expansion, employment would have had to increase by 203,000 in that time period; instead, it fell by 340,000. In June 2021, the unemployment rate was about two percentage points lower than in February 2020.