The Canadian economic recovery from the coronavirus looks much positive and promising for the first time in four months. The lifting of lockdown restrictions around the country has helped Canada to head towards the economic recovery and thus getting back to normal levels faster. Many Canadians and permanent residents are going back to their usual work schedules while many have started searching for new jobs.
When the coronavirus wave first hit Canada between February and March 2020, almost 3 million people lost their jobs in the country due to economic shutdown, and 2.5 million were not able to work due to coronavirus-related issues.
According to a recent survey report published by Statistics Canada, the labor market conditions for June 2020 were in a much better condition due to the gradual decrease of restrictions in most parts of Canada.
A rebound in the economy by the second week of June 2020 witnessed a drastic change when the number of workers impacted by the COVID-19 economic shutdown was 3.1 million, a start reduction since April of 43%. While in May, the government of Canada added 2, 90,000 jobs, in June, the government fueled the economy by injecting 1 million jobs.
The month of May and June witnessed the healing of the labor market by over 40% with over 1.24 million people gaining employment. The earlier months of 2020 saw over 3 million people losing their jobs due to the COVID-19 pandemic. In just two months, the unemployment rate drops from 13.7% in May to 12.3% in June.
In addition to this, as per the survey report, the labor market participation has also increased up to 63.8 % in June 2020. In February, this participation rate was just 65.5% due to the coronavirus related shutdown.
Temporary layoffs also decline as the employment levels rise in Canada. As the COVID-19 restrictions are lifted and economic activities are getting back on track, it is projected that the number of layoffs will decrease as people return to their previous job either due to necessity or by choice, or looking for new job opportunities. After a stable month of May, the number of Canadians on temporary layoffs fell by 29.1% in June. The decline in layoff numbers was majorly seen in people between the age group of 25-54. Additionally, one-third of the unemployment in Canada was due to layoffs, while two-third of the population was seeking new jobs in June.
The increase in employment across Canadian provinces is due to the easing of COVID-19 restrictions. In June, all provinces in Canada showcased an impressive rise in employment and a decrease of lockdown restrictions.
In Ontario, the employment level increased by 378,000 (+5.9%) in June since the COVID-19 shutdown was implemented. Quebec recorded employment gains of 248,000, whereas British Columbia’s employment rose by 118,000.
Other provinces, such as Nova Scotia, Saskatchewan, and New Brunswick also recorded positive employment recovery in the month of June 2020.
Additionally, large economic rebounds can be seen across various industries such as education, healthcare, retail, services-producing, and goods-producing sectors.
With COVID-19 economic restrictions continue to ease across Canada, labor market activities are expected to climb up very fast ensuring the country a big economic boost in the near future.