Ottawa — According to Statistics Canada, the economy lost 68,000 jobs in May as the blockade continued to slow the spread of COVID-19.
This loss has declined for the second straight month after the loss of 207,000 jobs in April.
The unemployment rate in May was 8.2%, which was almost unchanged from 8.1% in April. This is because the number of unemployed people in Canada was relatively stable overall.
What has changed is that in May more people dropped out of the workforce, including workers who simply gave up looking for a job because they were unmotivated.
According to the Statistics Bureau, the number of job seekers last month was 49,700, or 9.3%, more than double the average of 22,000 in 2019.
More than 28,000 core-age women between the ages of 25 and 54 did not look for a job in May due to continued third wave restrictions in Ontario and elsewhere, according to a data release on Friday.
According to Statistics Canada, the unemployment rate in May would have been 10.7%, taking into account those who wanted to work but didn’t find a job.
Due to unemployment in May, the country fell below the pre-pandemic level seen in February 2020 by about 571,100, or 3%.
However, adjusting for population growth during the pandemic could further increase the actual gap, bringing the labor market to about 763,000 jobs, or 3.9% below the February 2020 level.
According to Statistics Canada, jobs in the production sector have declined for the first time since April 2020, including manufacturing, where jobs fell by 36,000 in May.
Despite the losses, economists expect the situation to improve over the next few months as the state plans to relax restrictions and resume economic activity, as in the second wave of the pandemic, TD. Said Shri Tanabara Singham, Senior Economist at.
“Except this time, accelerated vaccine adoption may give employers more confidence and thereby boost their employment intent,” he wrote in a memo.
But he added that if fewer people participate in the labor market, the country could face a labor shortage, just as demand for workers recovers.