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Economy lost 213000 jobs in January as lockdown measures hit Ontario, Quebec – CTV News

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OTTAWA —
Canada’s labour market saw months of gains wiped out in a matter of weeks as widespread lockdowns and school closures erased 212,800 jobs in January, hitting mothers and youth particularly hard.

The monthly job declines were the worst seen since last April, sending the unemployment rate up 0.6 percentage points to 9.4 per cent, the highest rate since August.

The unemployment rate would have been 12 per cent in January had Statistics Canada included in its calculations Canadians who wanted to work but didn’t search for a job.

Losses in January marked a second straight month that the labour market contracted after 63,000 positions disappeared in December to break a streak of monthly gains that began in May 2020.

After clawing back from an unprecedented drop of three million jobs over March and April, the country plunged backwards and is now short 858,300 jobs, or 4.5 per cent, of employment levels from last February before the first wave of the COVID-19 pandemic.

January’s losses were concentrated in Ontario and Quebec where lockdowns and restrictions closed businesses and schools to rein in rising COVID-19 case counts.

Steep declines in part-time work, particularly among teenagers, and in service-industry jobs, including retail, overshadowed small upticks in full-time workers and in goods-producing sectors.

Brendon Bernard, an economist with job-posting website Indeed, said retail could quickly rebound as it did at the start of last summer if the pandemic is brought under control.

“Hopefully, there’s a light at the end of the tunnel in that regard,” he said, referring to vaccines, “and really that’s the main reason for optimism going forward.”

Employment fell faster for core-aged women than men and was particularly acute for mothers with elementary-aged children. With schools closed and students learning remotely, parents across the country saw the largest monthly jobs decline since last April.

Since last year, women have dropped out of the labour force faster than men to take care of their children, on top of being over-represented in industries targeted by increased restrictions, said Kaylie Tiessen, an economist and policy analyst for Unifor.

Even as their children have gone back to school with reopenings in parts of Ontario, Tiessen said women, youth and racialized workers have a cloud of uncertainty of when they may return to work because of lingering restrictions.

“There’s this double whammy of the restrictions have to lift in order for us to be able to even begin to go back (to work),” she said, “and after the restrictions lift is when we’ll know more about who’s going back and where.”

The challenge facing governments is how to reshape aid so workers have a springboard back into the workforce and possibly in new jobs, said Mikal Skuterud, a labour market expert from the University of Waterloo.

“A lot of those jobs in retail, and food and accommodation are not coming back,” Skuterud said. “We’re certainly not going back to where we would have been…if the pandemic had never happened.”

The Liberals’ upcoming budget, and a promise to spend up to $100 billion over three years on stimulus measures, may yield some answers about how to unwind blanket programs businesses and families have come to rely on.

Robert Asselin, senior vice-president at the Business Council of Canada, said the budget should target support to help Canadians find new work and allow them to be more productive.

Asselin, a former budget adviser to the Trudeau Liberals, pointed to work by the Biden administration to focus spending on research and development as well as infrastructure to help the American economy recover.

“The government says it’s working on it for the budget, but if (the budget) is just focused on more money for consumption, I think it will miss the mark.”

In the short-term, governments are facing calls to find new ways to manage the pandemic. The country “simply cannot afford to be in a holding pattern until vaccines arrive,” said Leah Nord, senior director of workforce strategies at the Canadian Chamber of Commerce.

Conservative finance critic Pierre Poilievre said the Liberals should quickly roll out more rapid tests for provinces to use as business groups have asked.

“We don’t know why Trudeau has been so slow in approving rapid tests, but certainly our jobs and economy have suffered as a result of his delays,” he said.

Economists noted hiccups in vaccination efforts and more contagious variants of COVID-19 may mean restrictions remain for longer and further delay a recovery. Bloc Quebecois Leader Yves-Francois Blanchet said that drags down confidence among businesses and workers.

“Restoring confidence depends on the ability of this government to get the vaccines delivered,” he said.

Prime Minister Justin Trudeau sought do to that Friday, talking about his confidence in delivery schedules despite short-term hiccups. He also said he is strongly encouraging provinces to use rapid tests and pointed to existing aid programs when asked what more the government could do for workers.

“We’re not at the end yet,” he said outside his Ottawa residence. “We know we’re going to have to continue to hang in there.”

With files from Maan Alhmidi and Mike Blanchfield in Ottawa

This report by The Canadian Press was first published Feb. 5, 2021.

 

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Business

A timeline of events in the bread price-fixing scandal

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Almost seven years since news broke of an alleged conspiracy to fix the price of packaged bread across Canada, the saga isn’t over: the Competition Bureau continues to investigate the companies that may have been involved, and two class-action lawsuits continue to work their way through the courts.

Here’s a timeline of key events in the bread price-fixing case.

Oct. 31, 2017: The Competition Bureau says it’s investigating allegations of bread price-fixing and that it was granted search warrants in the case. Several grocers confirm they are co-operating in the probe.

Dec. 19, 2017: Loblaw and George Weston say they participated in an “industry-wide price-fixing arrangement” to raise the price of packaged bread. The companies say they have been co-operating in the Competition Bureau’s investigation since March 2015, when they self-reported to the bureau upon discovering anti-competitive behaviour, and are receiving immunity from prosecution. They announce they are offering $25 gift cards to customers amid the ongoing investigation into alleged bread price-fixing.

Jan. 31, 2018: In court documents, the Competition Bureau says at least $1.50 was added to the price of a loaf of bread between about 2001 and 2016.

Dec. 20, 2019: A class-action lawsuit in a Quebec court against multiple grocers and food companies is certified against a number of companies allegedly involved in bread price-fixing, including Loblaw, George Weston, Metro, Sobeys, Walmart Canada, Canada Bread and Giant Tiger (which have all denied involvement, except for Loblaw and George Weston, which later settled with the plaintiffs).

Dec. 31, 2021: A class-action lawsuit in an Ontario court covering all Canadian residents except those in Quebec who bought packaged bread from a company named in the suit is certified against roughly the same group of companies.

June 21, 2023: Bakery giant Canada Bread Co. is fined $50 million after pleading guilty to four counts of price-fixing under the Competition Act as part of the Competition Bureau’s ongoing investigation.

Oct. 25 2023: Canada Bread files a statement of defence in the Ontario class action denying participating in the alleged conspiracy and saying any anti-competitive behaviour it participated in was at the direction and to the benefit of its then-majority owner Maple Leaf Foods, which is not a defendant in the case (neither is its current owner Grupo Bimbo). Maple Leaf calls Canada Bread’s accusations “baseless.”

Dec. 20, 2023: Metro files new documents in the Ontario class action accusing Loblaw and its parent company George Weston of conspiring to implicate it in the alleged scheme, denying involvement. Sobeys has made a similar claim. The two companies deny the allegations.

July 25, 2024: Loblaw and George Weston say they agreed to pay a combined $500 million to settle both the Ontario and Quebec class-action lawsuits. Loblaw’s share of the settlement includes a $96-million credit for the gift cards it gave out years earlier.

Sept. 12, 2024: Canada Bread files new documents in Ontario court as part of the class action, claiming Maple Leaf used it as a “shield” to avoid liability in the alleged scheme. Maple Leaf was a majority shareholder of Canada Bread until 2014, and the company claims it’s liable for any price-fixing activity. Maple Leaf refutes the claims.

This report by The Canadian Press was first published Sept. 19, 2024.

Companies in this story: (TSX:L, TSX:MFI, TSX:MRU, TSX:EMP.A, TSX:WN)

The Canadian Press. All rights reserved.

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Economy

S&P/TSX composite up more than 250 points, U.S. stock markets also higher

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TORONTO – Canada’s main stock index was up more than 250 points in late-morning trading, led by strength in the base metal and technology sectors, while U.S. stock markets also charged higher.

The S&P/TSX composite index was up 254.62 points at 23,847.22.

In New York, the Dow Jones industrial average was up 432.77 points at 41,935.87. The S&P 500 index was up 96.38 points at 5,714.64, while the Nasdaq composite was up 486.12 points at 18,059.42.

The Canadian dollar traded for 73.68 cents US compared with 73.58 cents US on Thursday.

The November crude oil contract was up 89 cents at US$70.77 per barrel and the October natural gas contract was down a penny at US2.27 per mmBTU.

The December gold contract was up US$9.40 at US$2,608.00 an ounce and the December copper contract was up four cents at US$4.33 a pound.

This report by The Canadian Press was first published Sept. 19, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

The Canadian Press. All rights reserved.

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Construction wraps on indoor supervised site for people who inhale drugs in Vancouver

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VANCOUVER – Supervised injection sites are saving the lives of drug users everyday, but the same support is not being offered to people who inhale illicit drugs, the head of the BC Centre for Excellence in HIV/AIDS says.

Dr. Julio Montaner said the construction of Vancouver’s first indoor supervised site for people who inhale drugs comes as the percentage of people who die from smoking drugs continues to climb.

The location in the Downtown Eastside at the Hope to Health Research and Innovation Centre was unveiled Wednesday after construction was complete, and Montaner said people could start using the specialized rooms in a matter of weeks after final approvals from the city and federal government.

“If we don’t create mechanisms for these individuals to be able to use safely and engage with the medical system, and generate points of entry into the medical system, we will never be able to solve the problem,” he said.

“Now, I’m not here to tell you that we will fix it tomorrow, but denying it or ignoring it, or throw it under the bus, or under the carpet is no way to fix it, so we need to take proactive action.”

Nearly two-thirds of overdose deaths in British Columbia in 2023 came after smoking illicit drugs, yet only 40 per cent of supervised consumption sites in the province offer a safe place to smoke, often outdoors, in a tent.

The centre has been running a supervised injection site for years which sees more than a thousand people monthly and last month resuscitated five people who were overdosing.

The new facilities offer indoor, individual, negative-pressure rooms that allow fresh air to circulate and can clear out smoke in 30 to 60 seconds while users are monitored by trained nurses.

Advocates calling for more supervised inhalation sites have previously said the rules for setting up sites are overly complicated at a time when the province is facing an overdose crisis.

More than 15,000 people have died of overdoses since the public health emergency was declared in B.C. in April 2016.

Kate Salters, a senior researcher at the centre, said they worked with mechanical and chemical engineers to make sure the site is up to code and abidies by the highest standard of occupational health and safety.

“This is just another tool in our tool box to make sure that we’re offering life-saving services to those who are using drugs,” she said.

Montaner acknowledged the process to get the site up and running took “an inordinate amount of time,” but said the centre worked hard to follow all regulations.

“We feel that doing this right, with appropriate scientific background, in a medically supervised environment, etc, etc, allows us to derive the data that ultimately will be sufficiently convincing for not just our leaders, but also the leaders across the country and across the world, to embrace the strategies that we are trying to develop.” he said.

Montaner said building the facility was possible thanks to a single $4-million donation from a longtime supporter.

Construction finished with less than a week before the launch of the next provincial election campaign and within a year of the next federal election.

Montaner said he is concerned about “some of the things that have been said publicly by some of the political leaders in the province and in the country.”

“We want to bring awareness to the people that this is a serious undertaking. This is a very massive investment, and we need to protect it for the benefit of people who are unfortunately drug dependent.” he said.

This report by The Canadian Press was first published Sept. 18, 2024.

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