Maple News reports that Canada’s unemployment rate rose sharply to 9.4% in January — the highest level recorded since August 2020 — as stricter COVID-19 restrictions took a toll on the labour market.
According to the latest Labour Force Survey from Statistics Canada, the country shed 213,000 jobs in January, marking the second consecutive month of employment losses after a decline of 53,000 in December. All of the job losses were in part-time positions, with the retail trade sector in Ontario and Quebec being hit the hardest.
The survey, conducted during the week of January 10 to 16, came as new health measures were enforced to combat a surge in infections during the second wave of the pandemic. Ontario and Quebec had both shuttered non-essential retail venues, with Quebec also enacting a nightly curfew from January 14. Alberta and Manitoba, meanwhile, closed in-person dining, personal care services, and recreational facilities.
In contrast, Atlantic Canada began relaxing some restrictions. Prince Edward Island reopened indoor dining and cultural facilities, while Halifax loosened similar measures just days before the survey period.
Employment declines were concentrated in Ontario and Quebec, while smaller drops occurred in Newfoundland and Labrador. Alberta, Manitoba, Nova Scotia, and PEI saw modest gains in employment, with British Columbia, Saskatchewan, and New Brunswick reporting little to no change.
Sectors most affected by public health restrictions — accommodation and food services, retail, and cultural industries — experienced the steepest employment losses. However, the construction industry saw job growth, particularly in Quebec and Alberta, suggesting some resilience in infrastructure-related activities.
Healthcare and social assistance employment rebounded to pre-pandemic levels for the first time after months of stagnation. The sector continues to experience high job vacancy rates due to reduced immigration levels. Immigrants remain critical to Canada’s health system, comprising 41.3% of nurse aides and 42.8% of specialist physicians in January.
The pandemic also drove more Canadians to work remotely. In January, the number of people working from home surpassed levels seen during the initial lockdown in April 2020, highlighting an enduring shift in workplace dynamics.
While Canada’s vaccination campaign was underway at the time, ongoing public health restrictions continued to shape the nation’s labour market in early 2021, leaving many workers and employers facing continued uncertainty.