Maple News reports that Canada experienced a setback in job recovery as national employment fell by 63,000 positions in December 2020, marking the first monthly decline since April of the same year. This 0.3% drop highlights the ongoing impact of renewed COVID-19 restrictions across multiple provinces.
According to Statistics Canada, approximately 1.1 million Canadians saw their work interrupted or eliminated due to public health measures aimed at curbing the pandemic during December. At its peak in April 2020, that number had risen to 5.5 million.
Part-time roles were hardest hit, with 99,000 jobs lost—a decline of 2.9%. Youth aged 15 to 24 and older workers over 55 years were the most affected demographics. In addition, self-employment dropped by 62,000 positions, placing it at the lowest level since the onset of the pandemic and 6.8% below its February benchmark.
The national unemployment rate remained relatively flat in December at 8.8%, compared to 8.5% in November. However, this remains significantly higher than the pre-pandemic rate of 5.6% recorded in February 2020.
The services-producing sector experienced a notable contraction, shedding 74,000 jobs—suggesting that areas such as accommodation, food services, and arts and culture were particularly affected by tightened health mandates. Interestingly, the extent of job losses in this sector surpasses the total national employment decline, hinting that other industries may have experienced gains.
One such sector showing resilience is manufacturing, which gained 15,000 jobs in December—even as other parts of the economy faltered.
Provincial data reflected the uneven application of public health orders. Employment dropped in Nova Scotia, Manitoba, Saskatchewan, and Prince Edward Island, while remaining stable in six other provinces. Ontario, which had shown consistent monthly employment growth between June and November at an average of 2.2%, saw its progress stall in December.
These numbers continue to underscore the volatility in Canada’s labor market and the critical role that public health policy plays in economic performance. As vaccination efforts expand and provinces adapt reopening strategies, labor conditions are expected to shift significantly in the coming months.
For Canada-bound workers and entrepreneurs, this labor market data provides essential insights into economic trends shaping immigration decisions and sectoral hiring needs.