Canadian employment took a beating to kick off 2021 as COVID-19’s second wave and further economic restrictions in Ontario and Quebec led to a surge in layoffs.
Nationally, employment plunged 1.2% (or 212,800 persons) to the lowest level since August 2020 on retail and hospitality sector losses.
In contrast, B.C. managed a small but insignificant gain in January. Employment rose by 0.1% or 2,800 persons marking a ninth straight increase, although hiring has stalled. Year-over-year, employment fell 1.7%, which was still best among large provinces amid relatively tame restrictive measures. Growth in full-time work in B.C. outpaced contraction in part-time employment. B.C.’s unemployment rate jumped to 8% from 7.2% as more individuals looked for work.
For the most part, industry employment held steady during the latest month, although accommodations and food services fell 4.2%. Losses were also observed in education (down 4.2%) and agriculture work.
In contrast, corporate offices and technology firms and government continued to hire. Professional/scientific/technical services employment rose 4.2%, information/culture/recreation rose 8.8%, and public administration gained 3.8%.
January numbers continued to highlight the K-shaped recovery of the economy. Hospitality sectors, face-to-face private personal services and broader tourism continue to struggle with year-over-year declines of more than 10%, while the knowledge economy and public administration have fully recovered.
Employment growth likely remains subdued before turning higher amidst the relentless struggles with the COVID-19 second wave, uncertainties for businesses related to possible restrictions and because the recovery’s low-hanging fruit has been picked.
The stampede of property buyers ran head-first into 2021 to lift Lower Mainland sales to a record-high January performance. Multiple Listing Service sales in the combined Metro Vancouver/Abbotsford-Mission area reached 4,061 units, marking a 62% gain from a year ago. This surpassed the previous record of 3,842 units in 2016 by 6% and the 10-year January average by 53%. •
Bryan Yu is chief economist at Central 1 Credit Union.
