Canada lost 200,000 jobs in January as the pandemic hit

2022-04-21 0 By

Canada lost 200,000 jobs in January amid tighter public health restrictions because of a new outbreak caused by the Omicron strain of COVID-19.That was the biggest decline since January 2021, when 207,800 jobs were lost, Statistics Canada said Friday.The loss of jobs also pushed the unemployment rate to 6.5% in January, compared with 6.0% in December.As Omicron spread across the country, the government reimposed capacity restrictions and closures on workplaces like restaurants and gyms.Ontario and Quebec, which lost the most work, are also the two provinces with the most restrictive measures.Statistics Canada says food services and hotels are the hardest hit, with young people and women the hardest hit.The unemployment rate rose in January because many people were furloughed or laid off, while the number of people looking for work was little changed, according to the report.Sickness absenteeism rose to an all-time high in January, with one in 10 employees leaving their jobs.The number of employees working less than half their usual hours climbed by 620,000, or two-thirds, the biggest increase since March 2020.However, Royal Bank economists Nathan Janzen and Claire Fan said they expect Omicron’s impact to be short-lived and not extend beyond the first quarter of 2022.Last year’s epidemic may provide data support, with a jobless surge in January 2021 followed by an even larger rebound of 272,500 in February;After losing 198,800 jobs last April, they fell again in May, but rebounded in June, adding 214,600.”Canada’s labor market has shown impressive resilience after several outbreaks last year, and some of the prevailing conditions that helped the recovery, such as heavy hiring by employers, are still in place,” Brendon Bernard, senior economist at job site Indeed, said in an email.”With the lifting of restrictions on indoor dining in some provinces, some of the jobs lost will quickly come back.”