the rennie brief: labour market - June 9, 2020

the rennie brief: labour market - June 9, 2020

THE LABOUR MARKET the rennie brief

WHAT YOU NEED TO KNOW: COVID-19 & THE IMPACT ON CANADIAN JOBS • After shedding 3 million jobs in March and April, Canada added close to 300,000 jobs in May—the largest single-month increase on record • BC added more than 43,000 jobs in May, while Metro Vancouver lost 8,500 • The growth in BC’s employment was largely seen in full-time job positions; in the re-opening of retail, food, and accommodation; and among younger workers • The labour market still has a long path to recovery, with BC’s unemployment rate rising to 13.4% and Metro Vancouver’s to 14.1% as more people sought employment in May

9 JUNE 2020

While the gains were uneven geographically and sectorally, the addition of 300K jobs in May provided some good news for Canada’s economy in the wake of our COVID-19 suppression.

In spite of BC’s gains, Metro Vancouver lost another 8,500 jobs in May—though it was a far cry from the 256,400 lost jobs in March and April combined. THE REALITY While seemingly paradoxical, the country’s unemployment rate actually rose in May (to 13.7%, up from 13% in April) despite the addition of almost 290,000 jobs. This is because the number of people looking for work increased faster than the rate of employment growth. Much of this was due to recent grads and other students (re-)entering the job market. BC’s and Metro Vancouver’s unemployment rates also rose, to 13.4% and 14.1%, respectively. Each of these unemployment rates is at a level not seen since in a generation, with employment counts sitting at their pre- Great Recession levels. LOOKING AHEAD Despite our obviously challenging economic circumstances, there are a number of things to feel good about following May’s >Page 1

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