Around 55% of jobs lost during the COVID-19 pandemic have been recovered
Canada saw its third straight month of employment recovery in July, placing labour market recovery at around 55% of the roughly 3 million jobs lost from February to April.
Latest data from Statistics Canada showed that the Canadian economy had 418,500 new jobs in July. While this was markedly lower than the increase of 952,900 in June, the unemployment rate significantly declined from 12.3% to 10.9%
Majority of the July gains were in part-time positions (345,300 jobs). Employment in the services and goods sectors is now at approximately 93% of their pre-pandemic levels.
“Long story short, this is great so far,” said Brian DePratto, senior economist at Toronto-Dominion Bank.
However, while some measure of optimism is warranted, a fully reenergized labour market might take much longer to manifest.
“I do think that, particularly as we get into the fall, it could be a much more gradual, drawn-out recovery that emerges,” DePratto said.
A similar conclusion was reached by a recent Canadian Payroll Association survey. The study found that considerable financial, economic, and job loss pressures lingered even among those who remained employed during the pandemic.
Of the 4,264 working Canadians polled by CPA, 58% said that they are experiencing greater fiscal stress during this crisis. Approximately 33% also said that they are afraid of losing their employment in the present environment, while 55% are concerned about the national jobs market. More than 54% said that their employer has suffered serious economic impact due to the coronavirus.
