After massive losses in the spring, the Canadian economy continues to claw back jobs but there is a long road ahead to reach pre-pandemic levels.
While the November report from Statistics Canada did surpass the meagre 20,000 jobs that many economists predicted, the Nov. numbers do point to an economic slowdown.
The Canadian job growth numbers for November reflect more favourable economic conditions than we are likely to see in the December report. During November, Ontario relaxed public health guidelines on indoor dining and other recreational activity. The restrictions on indoor dining and recreation were reinstated, but the relaxation earlier in the month provided a temporary economic boost to Canada’s most populace province.
November Canada jobs report
According to Statistics Canada, employment rose by 62,000 in November. This increase in jobs lowers the unemployment rate from 8.9% to 8.4%.
The Canadian hospitality sector, which is still reeling from both U.S. and international travel restrictions, lost 24,000 jobs. An additional 26,000 jobs were lost in the culture and recreational sectors.
These losses were offset by gains in the construction industry (+26,000), warehousing and transportation industries (+10,000), and the natural resources sectors (+10,000).
Canadian immigration is good for the Canadian economy
Immigration is a major driver for the Canadian economy. At the inception of the pandemic, both temporary and permanent immigration almost ground to a halt. In the months following the initial lockdown, the situation is markedly improving. International students are now returning to Canada, provinces are conducting regular provincial nominee program draws, and Express Entry is also doing the same.
Embedded in Canada’s historic three-year plan to welcome 1.2 million newcomers is the core tenet that immigration is a major source of economic growth for the country. As the pandemic ravages global economies, newcomers faith in the Canadian economy remains extremely high. This bodes well for Canada’s historic three-year plan to welcome 1.2 million newcomers.
The Canadian economy throughout the pandemic
As the pandemic spread during February and April, Canada lost 1,946,000 jobs, resulting in a 13.4% unemployment rate. The unemployment rate in Canada now sits at 8.4%.
Much work still needs to be done to reach the pre-pandemic level of 5.6%.