OTTAWA — Statistics Canada says the country added 94,000 jobs in July as public health restrictions linked to the COVID-19 pandemic continued to be lifted, but economists warned there is still a “long slog” toward a full recovery ahead.
The federal agency said Friday that the job gains caused the unemployment rate to fall to its lowest level since March of this year, at 7.5 per cent for July compared with 7.8 per cent in June.
The gains were seen primarily in Ontario and in the service sector, with 35,000 jobs added in the accommodation and food industry. Full-time work, which rose by 83,000 or half a percentage point across multiple sectors, also delivered growth.
Many economists had expected the country to add at least 100,000 new jobs during July and thought the unemployment rate would sit around 7.4 per cent last month.
Despite falling short of those predictions, CIBC senior economist Royce Mendes said “there’s not a whole lot to complain about when the economy creates almost 100,000 jobs in a month.”
“That’s a sign of recovery, but not a sign of mission accomplished,” he said.
July’s increase, he said, continues the pattern begun with the 231,000 jobs added in June and can be considered a strong gain, making up for employment losses incurred during the third wave of the COVID-19 pandemic.
But Canada is still 246,400 jobs, or 1.3 per cent, shy of pre-pandemic employment levels seen in February 2020 and threats to the economy’s recovery loom.
The number of people considered long-term unemployed — those out of work for more than six months — in July was 244,000 higher than before the pandemic and accounted for 27.8 per cent of total unemployment. Of that number, more than two-thirds have been out of work for a year or longer, Statistics Canada said.
Mendes pointed to scores of companies seeking workers and the virulent Delta variant as potential barriers to recovery.
“It might sound odd to be discussing labour shortages at a time when the unemployment rate is still very elevated, but generous government support, concerns about contracting COVID in high contact work settings and childcare duties are among the reasons there are labour shortages out there,” he said.
Restaurants, retailers and hospitality companies have all reported that hiring has been difficult because Canadians are seeking more stable employment, jobs they can complete from home and assurances that their workplaces won’t be temporarily closed if another wave of the virus arrives.
Some have had to resort to remaining closed, hiking pay or offering signing bonuses, extra vacation and other incentives to entice workers.
Even if another wave comes, Mendes doesn’t expect another economic contraction or major round of job losses to materialize because vaccinations are keeping large numbers of Canadians out of hospital and the government is opting for more targeted measures to quell the virus.
He also sees room for hiring growth in sectors that already saw big gains like food and accommodations and areas that haven’t yet seen a boost like recreation and culture.
But he is still cautious around how much of a recovery these sectors will experience.
“We should expect that over the course of this year and even well into next year, the level of employment in those high-contact service industries will not reach pre-pandemic levels because there will still likely be some restrictions needed to keep virus cases low,” he said.
“When we look out on the horizon, the way the economy might look when it’s fully healed, will be very different than it looked pre-pandemic.”
Meanwhile, Douglas Porter, BMO Capital Markets’ chief economist, predicted the country will see one more employment bump before it settles into a “long slog” as job gains tied to reopening dissipate and the economy begins to more seriously deal with the Delta variant of COVID-19.
He saw positive signs in the number of full-time positions added and the 1.3 per cent increase in total hours worked, though that figure was still 2.7 per cent below pre-pandemic levels.
“It will only take a few more reports like today’s to get employment all the way back to pre-pandemic highs,” Porter said in a note to investors.
“But this is a sturdy step in the right direction.”
Here’s a quick look at Canada’s July employment (numbers from the previous month in brackets):
Unemployment rate: 7.5 per cent (7.8)
Employment rate: 60.3 per cent (60.1)
Participation rate: 65.2 per cent (65.2)
Number unemployed: 1,521,400 (1,591,600)
Number working: 18,883,900 (18,789,900)
Youth (15-24 years) unemployment rate: 11.6 per cent (13.6)
Men (25 plus) unemployment rate: 7.1 per cent (7.2)
Women (25 plus) unemployment rate: 6.4 per cent (6.5)
Here are the jobless rates last month by province (numbers from the previous month in brackets):
Newfoundland and Labrador 12.7 per cent (13.0)
Prince Edward Island 9.6 per cent (12.5)
Nova Scotia 8.4 per cent (9.0)
New Brunswick 9.3 per cent (9.3)
Quebec 6.1 per cent (6.3)
Ontario 8.0 per cent (8.4)
Manitoba 6.1 per cent (7.6)
Saskatchewan 7.0 per cent (6.7)
Alberta 8.5 per cent (9.3)
British Columbia 6.6 per cent (6.6)
Statistics Canada also released seasonally adjusted, three-month moving average unemployment rates for major cities. It cautions, however, that the figures may fluctuate widely because they are based on small statistical samples. Here are the jobless rates last month by city (numbers from the previous month in brackets):
St. John’s, N.L. 8.3 per cent (8.8)
Halifax 8.7 per cent (8.8)
Moncton, N.B. 6.7 per cent (7.8)
Saint John, N.B. 8.8 per cent (8.2)
Saguenay, Que. 5.9 per cent (6.5)
Quebec City 4.0 per cent (5.1)
Sherbrooke, Que. 5.2 per cent (5.1)
Trois-Rivieres, Que. 4.6 per cent (4.4)
Montreal 7.5 per cent (7.7)
Gatineau, Que. 5.6 per cent (6.3)
Ottawa 7.6 per cent (8.2)
Kingston, Ont. 8.5 per cent (8.9)
Peterborough, Ont. 6.5 per cent (5.9)
Oshawa, Ont. 8.4 per cent (9.0)
Toronto 9.8 per cent (9.8)
Hamilton, Ont. 7.4 per cent (8.1)
St. Catharines-Niagara, Ont. 10.6 per cent (11.5)
Kitchener-Cambridge-Waterloo, Ont. 7.0 per cent (6.5)
Brantford, Ont. 6.1 per cent (6.5)
Guelph, Ont. 8.4 per cent (9.4)
London, Ont. 9.1 per cent (10.0)
Windsor, Ont. 11.1 per cent (11.8)
Barrie, Ont. 7.5 per cent (8.4)
This report by The Canadian Press was first published Aug. 6, 2021.
MONTREAL – Travel company Transat AT Inc. reported a loss in its latest quarter compared with a profit a year earlier as its revenue edged lower.
The parent company of Air Transat says it lost $39.9 million or $1.03 per diluted share in its quarter ended July 31.
The result compared with a profit of $57.3 million or $1.49 per diluted share a year earlier.
Revenue in what was the company’s third quarter totalled $736.2 million, down from $746.3 million in the same quarter last year.
On an adjusted basis, Transat says it lost $1.10 per share in its latest quarter compared with an adjusted profit of $1.10 per share a year earlier.
Transat chief executive Annick Guérard says demand for leisure travel remains healthy, as evidenced by higher traffic, but consumers are increasingly price conscious given the current economic uncertainty.
This report by The Canadian Press was first published Sept. 12, 2024.
Dollarama Inc.’s food aisles may have expanded far beyond sweet treats or piles of gum by the checkout counter in recent years, but its chief executive maintains his company is “not in the grocery business,” even if it’s keeping an eye on the sector.
“It’s just one small part of our store,” Neil Rossy told analysts on a Wednesday call, where he was questioned about the company’s food merchandise and rivals playing in the same space.
“We will keep an eye on all retailers — like all retailers keep an eye on us — to make sure that we’re competitive and we understand what’s out there.”
Over the last decade and as consumers have more recently sought deals, Dollarama’s food merchandise has expanded to include bread and pantry staples like cereal, rice and pasta sold at prices on par or below supermarkets.
However, the competition in the discount segment of the market Dollarama operates in intensified recently when the country’s biggest grocery chain began piloting a new ultra-discount store.
The No Name stores being tested by Loblaw Cos. Ltd. in Windsor, St. Catharines and Brockville, Ont., are billed as 20 per cent cheaper than discount retail competitors including No Frills. The grocery giant is able to offer such cost savings by relying on a smaller store footprint, fewer chilled products and a hearty range of No Name merchandise.
Though Rossy brushed off notions that his company is a supermarket challenger, grocers aren’t off his radar.
“All retailers in Canada are realistic about the fact that everyone is everyone’s competition on any given item or category,” he said.
Rossy declined to reveal how much of the chain’s sales would overlap with Loblaw or the food category, arguing the vast variety of items Dollarama sells is its strength rather than its grocery products alone.
“What makes Dollarama Dollarama is a very wide assortment of different departments that somewhat represent the old five-and-dime local convenience store,” he said.
The breadth of Dollarama’s offerings helped carry the company to a second-quarter profit of $285.9 million, up from $245.8 million in the same quarter last year as its sales rose 7.4 per cent.
The retailer said Wednesday the profit amounted to $1.02 per diluted share for the 13-week period ended July 28, up from 86 cents per diluted share a year earlier.
The period the quarter covers includes the start of summer, when Rossy said the weather was “terrible.”
“The weather got slightly better towards the end of the summer and our sales certainly increased, but not enough to make up for the season’s horrible start,” he said.
Sales totalled $1.56 billion for the quarter, up from $1.46 billion in the same quarter last year.
Comparable store sales, a key metric for retailers, increased 4.7 per cent, while the average transaction was down2.2 per cent and traffic was up seven per cent, RBC analyst Irene Nattel pointed out.
She told investors in a note that the numbers reflect “solid demand as cautious consumers focus on core consumables and everyday essentials.”
Analysts have attributed such behaviour to interest rates that have been slow to drop and high prices of key consumer goods, which are weighing on household budgets.
To cope, many Canadians have spent more time seeking deals, trading down to more affordable brands and forgoing small luxuries they would treat themselves to in better economic times.
“When people feel squeezed, they tend to shy away from discretionary, focus on the basics,” Rossy said. “When people are feeling good about their wallet, they tend to be more lax about the basics and more willing to spend on discretionary.”
The current economic situation has drawn in not just the average Canadian looking to save a buck or two, but also wealthier consumers.
“When the entire economy is feeling slightly squeezed, we get more consumers who might not have to or want to shop at a Dollarama generally or who enjoy shopping at a Dollarama but have the luxury of not having to worry about the price in some other store that they happen to be standing in that has those goods,” Rossy said.
“Well, when times are tougher, they’ll consider the extra five minutes to go to the store next door.”
This report by The Canadian Press was first published Sept. 11, 2024.
TORONTO – The U.S. Consumer Financial Protection Bureau has ordered TD Bank Group to pay US$28 million for repeatedly sharing inaccurate, negative information about its customers to consumer reporting companies.
The agency says TD has to pay US$7.76 million in total to tens of thousands of victims of its illegal actions, along with a US$20 million civil penalty.
It says TD shared information that contained systemic errors about credit card and bank deposit accounts to consumer reporting companies, which can include credit reports as well as screening reports for tenants and employees and other background checks.
CFPB director Rohit Chopra says in a statement that TD threatened the consumer reports of customers with fraudulent information then “barely lifted a finger to fix it,” and that regulators will need to “focus major attention” on TD Bank to change its course.
TD says in a statement it self-identified these issues and proactively worked to improve its practices, and that it is committed to delivering on its responsibilities to its customers.
The bank also faces scrutiny in the U.S. over its anti-money laundering program where it expects to pay more than US$3 billion in monetary penalties to resolve.
This report by The Canadian Press was first published Sept. 11, 2024.
