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Sudbury’s unemployment rate up slightly in April to 8.8%

Canada lost 207K jobs last month due to tighter restrictions around COVID-19
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Greater Sudbury’s unemployment rate edged upward in April, to 8.8 per cent.

That’s up from 8.4 per cent in March, according to Statistics Canada’s monthly Labour Force Survey.

In comparison, Sudbury’s unemployment rate a year ago was at 7.0 per cent.

Employment across the country fell by 207,000 (-1.1 per cent) in April and the unemployment rate rose 0.6 percentage points to 8.1 per cent, according to the LFS. With the exception of up-ticks in December, January and April, the unemployment rate has trended downward from its peak of 13.7 per cent in May 2020.

Employment declined in both full-time (-129,000; -0.8 per cent) and part-time (-78,000; -2.3 per cent) work. The number of employed people working less than half their usual hours increased by 288,000 (+27.2 per cent).

Following gains over the previous two months, employment in Ontario fell 153,000 (-2.1 per cent) in April.

Employment in British Columbia declined by 43,000 (-1.6 per cent)—the first decrease since substantial employment losses in March and April 2020.

Employment increased in Saskatchewan and New Brunswick, while there was little change in all other provinces.

The latest setback in the labour market will carry a longer-term impact on the workers and businesses affected, said Leah Nord, senior director of workforce strategies with the Canadian Chamber of Commerce. Some companies may close for good, and workers may take longer to find new positions, she said.

"Our collective focus is currently on the light at the end of the vaccine tunnel, but we risk losing sight of the continued turbulence in the labour market — and what that means for the Canadians bearing the brunt of it," she said in a statement.

Lockdowns and tight restrictions have continued into this month and could mean more losses show up when Statistics Canada reveals May's jobs report, said CIBC senior economist Royce Mendes.  

"The good news," he writes in a note, "is that the curve is bending in some regions of the country and vaccinations are picking up pace, both of which should help the labour market begin to recover in June."

May marks the beginning of the summer student job season — an important source of income and work experience for many youth, said Statistics Canada. In 2020, students entered a job market barely beginning to recover from the unprecedented employment losses of March and April, and, in May 2020, summer student employment was 40.1 per cent lower than in the previous year.

This year, the Canadian labour market in general is much closer to pre-pandemic conditions. However, significant challenges remain in several industries that typically account for the majority of summer student work. 

In the summer of 2019, for example, nearly two-thirds (64.6 per cent) of employed students intending to return to school in the fall worked in retail trade, accommodation and food services, or information, culture, and recreation.

Among these industries, employment in retail trade is closest to pre-COVID levels, although it did decline in January and April in response to tighter public health restrictions affecting non-essential retail businesses. Restrictions on this industry have continued in several jurisdictions and, in Ontario, are currently scheduled to remain in place through the May LFS reference week. The prospects for summer jobs in accommodation and food services, as well as information, culture, and recreation—where employment remains much further from recovery—will also likely depend on evolving public health measures and the safe return to in-person leisure activities.

-With files from the Canadian Press


 

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