The Canadian economy added 289,600 jobs in May, as parts of the economy reopened during the COVID-19 pandemic.
Economists were expecting 500,000 jobs would be lost during the period.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="The unemployment rate went up to 13.7 per cent according the the data from Statistics Canada, which is a record-high since data became available in 1976.” data-reactid=”25″>The unemployment rate went up to 13.7 per cent according the the data from Statistics Canada, which is a record-high since data became available in 1976.
The majority (219,400) of the jobs created were full-time positions.
Timing played a big role in the job creation surge.
“Labour Force Survey (LFS) results for May reflect labour market conditions as of the week of May 10 to May 16,” said Statistics Canada in its report.
“By then, some provinces had begun to re-evaluate and gradually ease public health and other restrictions, including allowing some non-essential businesses to re-open.”
Quebec accounted for nearly 80 per cent of the jobs created.
Ontario, which along with Quebec has been hit particularly hard by the pandemic, was the only province to lose jobs in May.
Trevin Stratton, the Canadian Chamber of Commerce’s Chief Economist and VP of Policy, called the numbers the “Schrodinger’s cat of job” markets. He says we shouldn’t read too much into them.
“It is indeed a strange time when we react favorably to slowing job losses that by any standard measure would be catastrophic. Today’s figures (290,000 jobs gained, but 13.7% unemployment) are both terrible and positive at the same time,” he said in a release.
We are still in an unprecedented economic downturn, but the unemployment rate is slowing. Canada avoided the worst-case economic scenario and the economic impact on the global economy has peaked, according to the Bank of Canada’s latest outlook.
Brendon Bernard, economist at Indeed, says there are signs of encouragement including a rise in jobs postings. But a number of factors will determine how a recovery plays out.
“How much the re-opening of shuttered areas of the economy boosts net-employment growth will in-part depend on whether layoffs slow,” said Bernard.
“Growth in CERB applicants has eased through early June, but haven’t stopped, suggesting shockwaves from the pandemic continue to reverberate throughout the labour market. Durability of the rebound is going to require Canadians to have reason for optimism about the outlook for the economy, and the public health situation.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="The Canadian economy shed around 3 million jobs in March and April.” data-reactid=”38″>The Canadian economy shed around 3 million jobs in March and April.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Jessy Bains is a senior reporter at Yahoo Finance Canada. Follow him on Twitter @jessysbains.” data-reactid=”39″>Jessy Bains is a senior reporter at Yahoo Finance Canada. Follow him on Twitter @jessysbains.
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