OTTAWA —
Nearly one-quarter of Canada’s unemployed have been without work for six months or more, with Statistics Canada reporting a spike in their numbers in October even as the economy eked out another month of overall job growth.
Nearly 450,000 were considered long-term unemployed last month, meaning they had been without a job for 27 weeks or more, with their ranks swelling by 79,000 in September and then 151,000 more in October.
Long-term unemployed now make up 24.8 per cent of Canada’s unemployed, who numbered 1.8 million in October, as the wave of short-term layoffs in March in April rippled into the fall.
The jumps in September and October are the sharpest over more than 40 years of comparable data, and have pushed long-term unemployment beyond what it was just over a decade ago during the global financial crisis.
More men than women have been out of work for an extended period, and younger workers make up a larger share of the ranks of the country’s long-term unemployed than they did in the last recession.
“As the pandemic lingers, and vulnerable sectors like food services continue to struggle, it’s really going to be tough to get back to normal,” said Brendon Bernard, an economist with job-posting site Indeed.
“And in the meantime, that’s going to mean definitely struggles for people who’ve been working in parts of the economy that are severely affected.”
The longer those people are out of work, the more difficult it will be for them to find a new job. And for those that do, research has shown a drop in their earnings as they settle for less than they had before.
Some older workers may simply decide to retire. Younger low-wage workers in hard-hit service sectors will have to find new work as part of a reshuffling of the workforce that could take years to play out.
Leah Nord, senior director of workforce strategies for the Canadian Chamber of Commerce, said the numbers show governments need to roll out “significant” skills training programs to those affected workers pivot to new careers.
The pace of job growth slowed in October as the economy added 83,600 jobs in the month compared with 378,000 in September, Statistics Canada said Friday. The gains marked the sixth straight month of gains after three million jobs lost over March and April when the pandemic first hit Canada hard.
The unemployment rate was little changed at 8.9 per cent compared with nine per cent in September.
The overall gains were the smallest since economies were allowed to reopen after lockdowns, noted TD senior economist Sri Thanabalasingam.
Job increases were found across several industries, including retail.
Most of the gains too were in full-time work, with core-aged women benefiting the most to bring their unemployment rate to 6.6 per cent, the lowest among the major demographic groups tracked by Statistics Canada.
But those gains were partially offset by a decrease of 48,000 jobs in the accommodation and food services industry, largely in Quebec, Statistics Canada says.
More Canadians were also working at home in October, coinciding with a rise in case counts of COVID-19.
CIBC senior economist Royce Mendes says the fact the economy posted another gain in October was good news.
“It seems like employment readings are destined to ebb and flow over the coming fall and winter months, as governments try to adjust activity in attempts to contain the virus,” he writes in a note.
Statistics Canada says the unemployment rate would have been 11.3 per cent in October had it included in calculations the 540,000 Canadians who wanted to work last month but didn’t search for a job.
A quick look at Canada’s October employment (numbers from the previous month in brackets):
Unemployment rate: 8.9 per cent (9.0)
Employment rate: 59.4 per cent (59.1)
Participation rate: 65.2 per cent (65.0)
Number unemployed: 1,816,800 (1,832,600)
Number working: 18,553,500 (18,469,900)
Youth (15-24 years) unemployment rate: 18.8 per cent (18.9)
Men (25 plus) unemployment rate: 7.8 per cent (7.8)
Women (25 plus) unemployment rate: 6.8 per cent (7.0)
Here are the jobless rates last month by province (numbers from the previous month in brackets):
Newfoundland and Labrador 12.8 per cent (14.8)
Prince Edward Island 10.0 per cent (10.1)
Nova Scotia 8.7 per cent (7.9)
New Brunswick 10.1 per cent (10.4)
Quebec 7.7 per cent (7.4)
Ontario 9.6 per cent (9.5)
Manitoba 7.1 per cent (7.0)
Saskatchewan 6.4 per cent (6.8)
Alberta 10.7 per cent (11.7)
British Columbia 8.0 per cent (8.4)
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. 8.8 per cent (9.8)
Halifax 7.7 per cent (8.4)
Moncton, N.B. 8.3 per cent (7.1)
Saint John, N.B. 10.0 per cent (10.1)
Saguenay, Que. 5.0 per cent (5.4)
Quebec City 4.5 per cent (5.0)
Sherbrooke, Que. 7.0 per cent (7.4)
Trois-Rivieres, Que. 6.0 per cent (6.3)
Montreal 9.6 per cent (10.7)
Gatineau, Que. 7.9 per cent (8.1)
Ottawa 8.2 per cent (8.7)
Kingston, Ont. 8.5 per cent (9.1)
Peterborough, Ont. 11.7 per cent (11.2)
Oshawa, Ont. 8.3 per cent (9.6)
Toronto 11.5 per cent (12.8)
Hamilton, Ont. 9.2 per cent (8.9)
St. Catharines-Niagara, Ont. 7.5 per cent (8.7)
Kitchener-Cambridge-Waterloo, Ont. 10.8 per cent (12.2)
Brantford, Ont. 7.2 per cent (8.1)
Guelph, Ont. 8.3 per cent (9.6)
London, Ont. 8.9 per cent (8.9)
Windsor, Ont. 10.8 per cent (9.8)
Barrie, Ont. 9.2 per cent (9.4)
Greater Sudbury, Ont. 7.9 per cent (8.5)
Thunder Bay, Ont. 7.6 per cent (8.3)
Winnipeg 8.7 per cent (9.4)
Regina 6.1 per cent (7.4)
Saskatoon 8.1 per cent (9.2)
Calgary 11.3 per cent (12.6)
Edmonton 12.0 per cent (12.6)
Kelowna, B.C. 6.2 per cent (8.0)
Abbotsford-Mission, B.C. 8.6 per cent (8.0)
Vancouver 9.7 per cent (11.1)
Victoria 7.6 per cent (9.1)
This report by The Canadian Press was first published Nov. 6, 2020.
TORONTO – Roots Corp. may have built its brand on all things comfy and cosy, but its CEO says activewear is now “really becoming a core part” of the brand.
The category, which at Roots spans leggings, tracksuits, sports bras and bike shorts, has seen such sustained double-digit growth that Meghan Roach plans to make it a key part of the business’ future.
“It’s an area … you will see us continue to expand upon,” she told analysts on a Friday call.
The Toronto-based retailer’s push into activewear has taken shape over many years and included several turns as the official designer and supplier of Team Canada’s Olympic uniform.
But consumers have had plenty of choice when it comes to workout gear and other apparel suited to their sporting needs. On top of the slew of athletic brands like Nike and Adidas, shoppers have also gravitated toward Lululemon Athletica Inc., Alo and Vuori, ramping up competition in the activewear category.
Roach feels Roots’ toehold in the category stems from the fit, feel and following its merchandise has cultivated.
“Our product really resonates with (shoppers) because you can wear it through multiple different use cases and occasions,” she said.
“We’ve been seeing customers come back again and again for some of these core products in our activewear collection.”
Her remarks came the same day as Roots revealed it lost $5.2 million in its latest quarter compared with a loss of $5.3 million in the same quarter last year.
The company said the second-quarter loss amounted to 13 cents per diluted share for the quarter ended Aug. 3, the same as a year earlier.
In presenting the results, Roach reminded analysts that the first half of the year is usually “seasonally small,” representing just 30 per cent of the company’s annual sales.
Sales for the second quarter totalled $47.7 million, down from $49.4 million in the same quarter last year.
The move lower came as direct-to-consumer sales amounted to $36.4 million, down from $37.1 million a year earlier, as comparable sales edged down 0.2 per cent.
The numbers reflect the fact that Roots continued to grapple with inventory challenges in the company’s Cooper fleece line that first cropped up in its previous quarter.
Roots recently began to use artificial intelligence to assist with daily inventory replenishments and said more tools helping with allocation will go live in the next quarter.
Beyond that time period, the company intends to keep exploring AI and renovate more of its stores.
It will also re-evaluate its design ranks.
Roots announced Friday that chief product officer Karuna Scheinfeld has stepped down.
Rather than fill the role, the company plans to hire senior level design talent with international experience in the outdoor and activewear sectors who will take on tasks previously done by the chief product officer.
This report by The Canadian Press was first published Sept. 13, 2024.
VANCOUVER – Mediated talks between the union representing HandyDART workers in Metro Vancouver and its employer, Transdev, are set to resume today as a strike that has stopped most services drags into a second week.
No timeline has been set for the length of the negotiations, but Joe McCann, president of the Amalgamated Transit Union Local 1724, says they are willing to stay there as long as it takes, even if talks drag on all night.
About 600 employees of the door-to-door transit service for people unable to navigate the conventional transit system have been on strike since last Tuesday, pausing service for all but essential medical trips.
Hundreds of drivers rallied outside TransLink’s head office earlier this week, calling for the transportation provider to intervene in the dispute with Transdev, which was contracted to oversee HandyDART service.
Transdev said earlier this week that it will provide a reply to the union’s latest proposal on Thursday.
A statement from the company said it “strongly believes” that their employees deserve fair wages, and that a fair contract “must balance the needs of their employees, clients and taxpayers.”
This report by The Canadian Press was first published Sept. 12, 2024.
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.
