A worker smooths concrete at a construction site in Toronto, Thursday, Jan. 16, 2020. Statistics Canada is expected to release its snapshot of the Canadian job market for December this morning. THE CANADIAN PRESS/Cole Burston

A worker smooths concrete at a construction site in Toronto, Thursday, Jan. 16, 2020. Statistics Canada is expected to release its snapshot of the Canadian job market for December this morning. THE CANADIAN PRESS/Cole Burston

Canadian economy lost 63,000 jobs in Dec., first decline since April

Statistics Canada said Friday the economy lost 63,000 jobs in December while the unemployment rate edged up to 8.6%

Canada posted its first monthly decline in jobs since April amid tightened public health restrictions in December, and economists warn the losses are likely to continue in January as the number of new COVID-19 cases continue to rise.

Statistics Canada said Friday the economy lost 63,000 jobs in December while the unemployment rate edged up to 8.6 per cent compared with 8.5 per cent in November.

“Due to both the continuing rise in virus cases to open the new year and the further curtailments of activity since the last survey, another month of job losses could be on the horizon in January,” CIBC senior economist Royce Mendes said.

“The weak jobs report, combined with the recent appreciation of the Canadian dollar, will put pressure on the Bank of Canada to ease monetary policy further.”

Statistics Canada said its report was a snapshot of labour market conditions for the week of Dec. 6 to 12. It noted that additional public health measures were put in place in many provinces after that period and would likely to be reflected in its January labour force survey results.

Several provinces have also further extended COVID-19 restrictions as public health officials blamed holiday gatherings for a rise in infections.

TD Bank senior economist Sri Thanabalasingam said the resurgence of the virus is hitting Canada hard.

“Sharp increases in caseloads and hospitalizations are leaving provinces with little choice but to impose or prolong restrictions on an economy that is but a shadow of itself,” Thanabalasingam wrote in a report.

“It will be a rocky road for the Canadian economy until vaccines can be widely distributed and normal life can resume.”

Mendes noted that when the restrictions began to ease last spring and summer, the rebound in the economy came quickly.

“The good news is that last summer we saw a pretty sharp snapback at a time when virus cases were low and public health restrictions were eased, so that should give people some optimism that after this rough patch is hopefully behind us, the economy can bounce back quite well in the short-term,” he said.

The job losses in December ended a streak of monthly job gains that began in May, when initial restrictions put in place to slow the spread of the pandemic began to ease.

Full-time employment in December rose by 36,500, but there was a loss of 99,000 part-time jobs.

Statistics Canada said that total hours worked fell for the first time since April as they declined 0.3 per cent in December.

By April last year the COVID-19 economic shutdown had directly affected 5.5 million Canadian workers, including 3.0 million who had lost their job and 2.5 million who were employed but had experienced COVID-related absences from work.

The number affected was 1.1 million in December, including a drop in employment of 636,000 since February and 488,000 more Canadians who were employed but working less than half their usual hours for reasons likely related to COVID.

December employment fell in industries most directly affected by the new and continuing public health measures.

The number of jobs in the services-producing side of the economy fell for the first time since April as it lost a total of 74,000 in December. The goods-producing sector gained 11,300 jobs.

The accommodation and food services industry lost 56,700 jobs for the month, while the “other services” category, which includes hair salons, laundry services and other areas affected by public health measures, lost 30,800. The information, culture and recreation group lost 18,800.

However, the manufacturing sector gained 15,000 jobs in December, driven by an increase in Ontario.

The share of Canadians working from home was 28.6 per cent in December.

Financial data firm Refinitiv says economists on average had expected the report to show a loss of 27,500 jobs for December. The unemployment rate was expected to be 8.6 per cent.

Craig Wong, The Canadian Press

Like us on Facebook and follow us on Twitter.

Want to support local journalism? Make a donation here.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Robbie Campbell lost his livelihood when the pandemic shut down Shambhala Music Festival. Instead, he spent part of 2020 working on a children’s book called Tulip that is now available. Photo: Submitted
In a lousy year, a Kootenay man was saved by a pink T-rex

Robbie Campbell became a children’s author after the pandemic cost him his livelihood

A health-care worker prepares a dose of the Pfizer-BioNTech COVID-19 vaccine at a UHN COVID-19 vaccine clinic in Toronto on Thursday, January 7, 2021. THE CANADIAN PRESS/Nathan Denette
253 new COVID-19 cases, 4 more deaths in Interior Health over the weekend

More than 1,000 cases in the region remain active

A Trail man has a lucky tin for a keepsake after it saved him from a stabbing last week. File photo
RCMP: Small tin saved Trail man from stabbing

The man was uninjured thanks to a tin in his jacket

School District 8 is asking the education ministry to stop making the Foundation Skills Assessment data public. File photo
Kootenay Lake School District requests education ministry make annual student assessments private

The district is concerned the data is being misused by the Fraser Institute

Nelson has begun 2021 with a small rise in COVID-19 cases. Illustration: BC Centre for Disease Control
Ten new cases of COVID-19 in Nelson area

The cases were reported for the week of Jan. 3 to 9

Provincial health officer Dr. Bonnie Henry prepares a daily update on the coronavirus pandemic, April 21, 2020. (B.C. Government)
B.C. adjusts COVID-19 vaccine rollout for delivery slowdown

Daily cases decline over weekend, 31 more deaths

B.C.’s Ministry of Advanced Education and Skills Training announced funding to train community mental health workers at four B.C. post-secondary institutions. (Stock photo)
B.C. funding training of mental health workers at four post-secondary institutions

Provincial government says pandemic has intensified need for mental health supports

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

A health-care worker prepares a dose of the Pfizer-BioNTech COVID-19 vaccine at a UHN COVID-19 vaccine clinic in Toronto on Thursday, January 7, 2021. THE CANADIAN PRESS/Nathan Denette
No Pfizer vaccines arriving in Canada next week; feds still expect 4M doses by end of March

More cases of U.K. variant, South African variant found in Canada

Health-care workers wait in line at a UHN COVID-19 vaccine clinic in Toronto on Thursday, January 7, 2021. THE CANADIAN PRESS/Nathan Denette
Canadians who have had COVID-19 should still get the vaccine, experts say

Pfizer-BioNTech and Moderna vaccines were found to have a 95 per cent efficacy

An empty Peel and Sainte-Catherine street is shown in Montreal, Saturday, Jan. 9, 2021, as the COVID-19 pandemic continues in Canada and around the world. THE CANADIAN PRESS/Graham Hughes
Poll finds strong support for COVID-19 curfews despite doubts about effectiveness

The poll suggests 59 per cent remain somewhat or very afraid of contracting COVID-19

Sunnybank
COVID-19 related deaths at Oliver, West Kelowna and Vernon senior care homes

Sunnybank, Heritage Retirement Residence and Noric House recorded deaths over the weekend

A female prisoner sent Langford police officers a thank-you card after she spent days in their custody. (Twitter/West Shore RCMP)
Woman gives Victoria-area jail 4.5-star review in handwritten card to police after arrest

‘We don’t often get thank you cards from people who stay with us, but this was sure nice to see’: RCMP

Most Read