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Economic recovery: Canada adds another 246,000 jobs in August

Alexandra Miekus
Published: September 5, 2020

Some 3 million jobs were lost following lockdowns introduced across Canada in March to contain the spread of the coronavirus.

However, more people are now back to work.

The results of the听听released on Friday show that the recent easing of public health restrictions has meant more employment for Canadians in general and for immigrants in particular.

In August, employment rose 1.4% for Canadians, rising to within 5.7% of pre-COVID levels.听 Meanwhile,听employment for landed immigrants was up 1.6% while employment for recent immigrants was up 2.2%, an increase driven mainly by the reduction in the population of recent immigrants due to听lower newcomer arrivals听during the pandemic.听听

The vast majority of the employment gains were in full-time positions.

Employment growth was concentrated in the services sector (+1.5%) as opposed to the goods producing sector.听

The services sector growth was concentrated in educational services, accommodation and food services, and the 鈥渙ther services鈥 industry which includes hard-hit hair and beauty salons.听

In the goods producing sector, gains in manufacturing were partially offset by declines in natural resources.听听

While these gains are very good news for all Canadians, some disparities exist in the employment picture.听

The labor force participation rate for men is now within 0.2% of pre-covid听levels while for women it is 1.3% below pre-covid听levels 鈥 an indication that many women are engaged in non-employment related听activities听such as child-care.听

Unemployment rates remain higher for visible minorities as compared to people who are not members of a visible minority group.听 The national unemployment rate of 11.1% (not seasonally adjusted) compared to 17.9% for Arab, 17.6% for Black, and 16.6% for Southeast Asian populations.

Low-wage workers and youth have employment levels only 86.0% of February levels while other employees have nearly returned to pre-COVID levels (99.1% of February employment levels).听This is entirely driven by the concentration of low-wage employment in hard-hit services-producing industries.

As such, there remains plenty of room for improvement. Canada still needs to recover 1.1 million jobs that have been lost since the start of the pandemic.

This new report, however, shows that Canada鈥檚 economic recovery is moving in the right direction. Nearly 1.9 million jobs have been recoveredin recent months. In addition to the听246,000听jobs created听in August,听another听419,000听were recovered听in July, and 1.2 million听were recovered听in May and June.听

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