New labour force figures show that Canada is on its way to a complete economic recovery, with employment exceeding expectations and unemployment reaching pre-pandemic levels.
Employers in Canada added 154,000 jobs to the economy in November. Last month’s increase surpassed experts’ expectations of 38,000, which was more in line with October’s figures. Employment increased by a full percentage point over pre-pandemic levels as a result of the gains. In addition, unemployment fell to 6%, which is within 0.3 percentage points of its February 2020 level.
The Labour Force Survey data from Statistics Canada represent labour market conditions from November 7 to 13. Policies requiring proof of vaccination and other public health precautions remained mostly unchanged from October.
The private sector-led hiring in November, both for full-time and part-time employees. Despite this, Canada continues to face labour shortages in industries such as hospitality, retail, and health care. There were about one million job openings throughout the country in September.
In late October, 19 financial aid programs came to an end. It may have driven them to accept employment offers, according to some observers. The Canadian Recovery Benefit for Individuals, which had been criticized for deterring people from returning to work, was one of these initiatives. Conference Board of Canada stated that the lack of wage growth was an even larger deterrent, particularly in low-paid service industries.
“The withdrawal of the [Canadian Recovery Benefit] may have driven some employees back into employment,” argues economist Liam Daly, “but this alone will not be adequate to overcome the major labour shortages afflicting key industries.”
Despite the increase in employment, RBC economist Nathan Janzen argued that service sector employment was remained “exceptionally low.”
Source: CIC News