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Employment in Canada falls for the first time since April

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Every year thousands of immigrants come to Canada to work in Canada. However, Canada is a top destination among people who want to work and live in a peaceful place. The coronavirus pandemic has affected the Canadian economy a lot.

Moreover, the employment rate in Canada fell by 0.3% last year. For the first time in Canada since April 2020, more than 63,000 jobs lost in December. It’s a great loss for the Canadian economy.

Canada implemented travel restrictions in March 2020 to stop the spread of COVID-19. However, these restrictions across the country impacted the labor market of Canada. Canada is planning to compensate for the damage caused due to COVID-19.

Negative Effects of COVID-19

Over 1.1 million workers got negatively affected by the economic shutdown to control the spread of COVID-19. However, this number was around 5.5 million in April 2020.

The number of part-time employment dropped by 99,000 in December or 2.9%. However, many of them who lost their part-time jobs were young people between 15 and 24 years of age. Moreover, some of them were 55 and older.

Additionally, self-employment also fell by 62,000. The number of self-employed people is now the lowest than the beginning of the pandemic. However, it was 6.8% lower than it was in February.

The rate of unemployment in December was 8.6%. However, it was practically unchanged from November, where it was 8.5%. However, the unemployment rate in February was 5.6%.

Moreover, employment in the sector of services-producing decreased for the first time since April. The number of fall in employment was 74,000 in December. However, this number is greater than the overall jobs lost in December. It shows that other sectors may have seen an increase in employment.

The rate of loss in employment in this sector is specifically due to the tightened public health measures. The restrictions affected the industries like accommodation and food services, culture and recreation, and the information sector.

However, the number of employment in manufacturing increased by 15,000 in December.

Effects on Provincial Labor Markets

Every province implemented different public health measures. However, the health measures in different provinces are reflected in the conditions of the provincial labor markets.

Employment levels fell down in Manitoba, Nova Scotia, Prince Edward Island, and Saskatchewan. However, the rate of employment in the other six provinces remained the same.

Moreover, Ontario saw average monthly employment growth of 2.2% from June to November. However, the employment growth stalled in December.

In Quebec, the employment rate did not change for the third month in a row. However, there were tight public health measures in the province since October. Moreover, the province also tightened the measures in January 2021.

A new province-wide curfew was in place between 8 p.m. and 5 a.m. However, this measure can negatively impact the employment rate of Quebec.

There was no loss in employment in the territories. However, in Yukon, the employment rate increased by 800 people in the fourth quarter of the year 2020. Employment in the Northwest Territories increased by 1,300 during this period. The employment rate remained steady in Nunavut.

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Many Canadians Still Looking for Jobs

The rate of labor underutilization was at 17.1% in December. However, this rate remained practically unchanged in November. The rate of employment was decreasing since April when it was around 36.1%.

This rate shows the number of people who are in the potential labor force. However, they are either unemployed or, if employed, they are working less than half of their usual hours or wages. Some people need a job, but they are not searching for it.

A total number of 41.2% of labor underutilization were those who are looking for work. Moreover, 36.4% were unemployed, but they were working less than their usual hours.

However, people who wanted a job but are not actively looking for one made up another 14.3%. The rest were laid off temporarily or planning to start a job soon.

Working from Home

One of the main impacts caused by COVID-19 is the increasing number of people who prefer working from home. This measure is in place to balance the health and safety of people.

However, the incline towards work from home is at high levels in industries having no need to go into work. These industries are finance, real estate, insurance, rental, and leasing. However, the public administration industry also adds to these industries.  

The number of people working from home decreased to 25.6% in September. However, this number was at its peak of 41.6% in April.

Since the public measures due to COVID-19 have been tightened due to the rising number of COVID-19 cases. Moreover, the number of people working from home increases by up to 28.6% in December.

Moreover, working from home is less popular in industries like accommodation and food services. These are occupations where physical proximity is crucial.

Canada has increased its immigration intake between 2021 – 2023. You can apply for a Canadian visa to work in Canada.

Read More: The survey suggests how Canada can improve economic outcomes for immigrants

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