As expected, Canada’s labour market figures were gut-wrenching in March as the effects of government interventions to limit the spread of COVID-19 led to a collapse in employment, threatening the livelihood of Canadians across the country.
Canadian employment declined by 1.011 million persons from February, or 5.3%, while the average unemployment rate soared 2.2 points to 7.8%. In both cases, this marked the sharpest change on record going back to 1976. Losses predominantly reflect temporary layoffs as businesses plan to rehire after measures are lifted. The worst single-month decline during the 2008-09 Great Financial Crisis was 124,800, with a peak-to-trough loss of 425,000 over a seven-month period. As job losses mounted after the reference week ending March 21, April will show further contraction.
The sharpest employment contractions occurred in Quebec (down 6%), Ontario (down 5.3%), B.C. (down 5.2%) and Alberta (down 5%). Variation partly reflects the timing of provincial containment measures.
Nationally, full-time employment fell by 474,000 persons, or 3%, while part-time employment plunged by 536,700 persons, or 15%. While nearly all sectors experienced losses, those with the most public exposure were worst hit. Accommodations and food services fell 24%; arts, entertainment and recreation declined 13%. Natural resources, construction and public administration were largely unaffected. Sectors with the ability to allow employees to work from home also held up.
Headline statistics tell only part of the story as many technically employed workers were fully or partially idled. Total hours worked in the economy fell 15% in March, reflecting the combination of job losses and idling of employed workers. Lower-income workers have been hit.
B.C. numbers played out much like the country as a whole.
Total employment fell by 132,400 persons or 5.2% to 2.407 million persons. Full-time work fell by 56,900 persons or 2.9%, while part-time work declined 75,500 or 13.9%. B.C.’s unemployment rate rose from 5% to 7.2%. Hours worked in the economy fell 20% from both February and a year ago.
Accommodation and food services contracted by 36,400 employees or 18.7% from February, with information, culture and recreation down 16,800 or 14%. Wholesale and retail trade contracted by 40,000 employed persons or 9.9%. •
Bryan Yu is deputy chief economist at Central 1 Credit Union.
