200,000 jobs lost in January, according to Statistics Canada

The Canadian economy lost 200,000 jobs in January under stricter public health regulations enacted to slow the spread of the Omicron variant of COVID-19.

According to Statistics Canada, this decline was the largest decline since January 2021, when the economy lost 207,800 jobs.

The unemployment rate also pushed up the unemployment rate in January from 6.0% in December to 6.5%.

As Omicron spread across the country, the government reintroduced capacity limits and closures in workplaces such as restaurants and gyms.

The majority of unemployment occurred in Ontario and Quebec, with some of the toughest measures in each state.

According to Statistics Canada, food services and hotels were hit hardest, with young people and females most affected.

“The increase in the unemployment rate in January was due to more people being temporarily dismissed or planning to get a job in the near future, and the number of people looking for a job remained almost unchanged,” he said.

Absence due to illness reached a record high in January, with one in ten employees leaving work. The number of employees with less than half the normal working hours increased by 620,000, or two-thirds, the largest increase since March 2020.

However, Royal Bank economists Nathan Janzen and Claire Fan said the impact of Omicron is short-lived and is not expected to grow beyond the first quarter of 2022.

Recent history may prove a guide. Following the wave of unemployment in January 2021, there was a significant recovery of 272,500 in February last year. The economy lost 198,800 jobs in April last year and fell further in May, but recovered with an increase of 214,600 in June.

“The Canadian labor market has shown an impressive ability to recover after last year’s wave, and some of the general conditions that helped the recovery remain, such as increased employers’ willingness to hire,” said the job site. Brendon Bernard, Senior Economist, said. on mail.

“Some states have relaxed rules for indoor dining, so some of the lost work may come back soon.”

Along Christopher Reynolds

Canadian press