Canadian Employment Numbers Decline for Second Month in a Row as Third Wave of Restrictions are Implemented

Statistics Canada (StatsCan) is reporting that Canadian employment fell by 68,000 (-0.4%) in May, adding to a decline of 207,000 in April. The unemployment rate was little changed at 8.2%. The unemployment rate remained lower than the recent peak of 9.4% seen in January 2021 and considerably lower than its peak of 13.7% in May 2020. Almost all of May’s increases are being attributed to a decline in part time work of -54,000. In addition to the employment declines, the number of employed people working less than half their usual hours increased for a second consecutive month, rising by 83,000 (+6.1%). Total hours worked were virtually unchanged in the month but remained 3.8% below pre-pandemic levels. Employment in the goods-producing sector dropped for the first time since April 2020, with decreases in both the manufacturing and construction industries. Ontario and Nova Scotia were the only provinces to register declines in total employment.