The economy added 84,000 new Canadian jobs in October, surpassing economist’s expectations — but there are signs of an economic slowdown on the horizon.
Strong gains in the education and retail sectors, as well as professional and scientific services, offset major losses in the tourism industry.
Economists were expecting the creation of approximately 75,000 new jobs last month. So the October Statistics Canada report was welcome news to many. But after a staggering one million jobs were created in June, and the announcement in July that Canada had clawed back over half of all job losses since March, Canada’s economic rebound is slowing.
October Canadian jobs creation report
Employment in Canada was up by 84,000 (+0.5%) jobs. Of the 84,000 new jobs, 69,000 are full-time positions. The unemployment rate remains steady at 8.9% but this number is not equal for segments of the Canadian population.
There was little change to the rate of unemployment for visible minorities (11.7%) when you compare it to Canadians who are not part of a visible minority (6.7%).
In Oct., Canada lost 48,000 jobs in the accommodation and food services industry, primarily in Quebec. Growth in transportation, warehousing, and construction jobs was also stalling in Oct.
Five Canadian provinces (Ontario, British Columbia, Alberta, Newfoundland and Labrador, and Prince Edward Island) saw increasing employment rates. Quebec is notably absent from this list as heavy losses in the tourism sectors hit the province particularly hard.
Canada’s economic slowdown
Even as recently as September, Canada was posting incredible job creation numbers. In Sept., Canada created 378,000 new jobs, blowing away expectations of a more modest 150,000 jobs created.
So what happened to Canada’s booming economic rebound? The continuation of travel restrictions and more regions entering lockdowns due to increasing COVID-19 infection rates. The effect of travel restrictions and the resumption of lockdowns to the Canadian economy is apparent from the massive job losses to the tourism industry.
How long or how severe of an economic slowdown Canada is facing will largely depend on the progression of the coronavirus pandemic.