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Where Canada's job market stands one year after the pandemic began – CBC.ca

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The latest Labour Force Survey was more positive than expected, but Canada is still a long way from returning to its pre-pandemic economy.

February marked 12 months of “unprecedented changes in the Canadian labour market” due to the COVID-19 pandemic, Statistics Canada said in its monthly jobs report on Friday.

Here’s a look at the latest news about the COVID economy.

Give me the bad news first

Compared with 12 months earlier, there were 599,000 fewer people employed and 406,000 more people working less than half their usual hours. That puts employment 3.1 per cent below pre-pandemic levels.

The employment rate — the percentage of people 15 and up who are employed — was 59.4 per cent in February compared with 61.8 per cent in February 2020.

It plummeted to 51.5 per cent in April, the lowest it’s been since comparable numbers have been kept and still hasn’t climbed all the way back. 

Statistics Canada said February’s improving numbers were largely influenced by the easing of pandemic restrictions in certain areas. (Laura Howells/CBC)

Who’s suffering most?

Few have gotten off easy, but Statistics Canada said the sectors that suffered during a dip in December and January were those most affected by pandemic restrictions: retail, accommodation and food services.

These sectors disproportionately affect women, especially younger women.

There were 111,000 fewer women working in retail than 12 months earlier, while employment among men in that sector has changed little.

Statistics Canada noted that women are more concentrated in public-facing jobs such as sales reps and sales support workers, which are more affected by public health measures.

While women aged 24 to 54 did relatively well in February, with employment increasing 1.3 percentage points to December levels, year-over-year losses among young women, especially teenagers, were nearly double those seen among young men.

The employment rate among Indigenous women was down 6.8 percentage points year-over-year and was unchanged for Indigenous men.

OK, I’m ready for the good news

Good, because there’s lots of it:

  • Canada added 259,000 jobs in February, recovering most of the jobs it lost in the previous two months during tighter pandemic restrictions.
  • The unemployment rate dropped from 9.4 per cent to 8.2 per cent, the lowest rate since March 2020, when the pandemic was declared.
  • The increase in employment is the biggest since September and handily exceeded analysts’ expectations of 75,000 added jobs and an unemployment rate of 9.2 per cent.
  • Both part-time and full-time work increased and long-term unemployment (27 weeks or more) fell by 9.7 per cent from a record high of 512,000 in January.
  • Among people who worked at least half their usual hours, the number working at locations other than home increased by 600,000 as schools and other workplaces reopened in several provinces, the agency said.

Statistics Canada separately reported strong production capacity and factory sales data and said Canadians continued to add to their personal savings and net worth at far higher rates than before the pandemic.

The Canadian dollar, meanwhile, strengthened to 1.25 to the greenback, or 80 US cents, after the data.


Prime Minister Justin Trudeau trumpeted the jobs numbers during a COVID-19 update in Ottawa on Friday, but said: “Let’s not forget there’s still too many people for whom things continue to be really tough.”

He said the government is here to get people through the crisis and pointed to the Canada emergency wage subsidy and the Canada emergency rent subsidy.

How do the experts feel about the numbers?

They’re bullish, mostly.

“A lot of this is the January numbers reversing, but there were also some full-time jobs being added, which shows improvement in the economy,” said Andrew Kelvin, chief Canada strategist at TD Securities.

“It’s a very positive set of numbers and suggests a quicker recovery for the broader economy.”

Analysts said the blockbuster job gain shows that excess capacity is closing far faster than the Bank of Canada’s expectations.

Derek Holt, vice-president of capital market economics at Scotiabank, said: “I would be surprised if they don’t signal fairly soon that they are starting to back further away from their bond purchase program.”

Bank of Canada deputy governor Lawrence Schembri said on Thursday that if Canadians start spending the massive nest egg they have amassed during the coronavirus pandemic, it could “meaningfully affect” economic growth.

So what’s the catch?

Statistics Canada said February’s numbers were strongly influenced by the easing of pandemic restrictions in provinces such as Quebec, Alberta, New Brunswick and Nova Scotia, as well as parts of Ontario.

As such, the gains were concentrated in Ontario and Quebec and in jobs that pay $17.50 an hour or less and in industries that had just had big losses in January.

Though he’s employed, Stacy Davidson is a good example of the struggles people are having in pandemic-vulnerable industries.

The bartender from North Vancouver told CBC News Network he is working three jobs, yet makes less than half of what he made before the pandemic. The number of patrons allowed inside his bar has been reduced and closing time has been moved to 10 p.m.

“People don’t really have enough time to get substantially intoxicated enough to the level where they actually want to tip generously,” Davidson said.

He said he’s been forced to pull back, pushing his dream of owning his own bar down the road three years, and even cutting internet service at his house.

WATCH | North Vancouver bartender works three jobs to make ends meet:

The coronavirus pandemic has decimated the hospitality industry and that’s forced B.C.’s Stacy Davidson to pick up more bartending work as his wages tanked. 7:40

Where do we go from here?

Toronto-based Gareth Watson, an investment adviser at Richardson Wealth, said it’s encouraging that jobs are still being created during one of the country’s worst economic downturns. At the same time, it’s important to note that employers are still very hesitant to bring back workers at full wages and full hours.

“You can get a job but only be working half the hours that you had before, but you still get counted as a new job,” he said. “So we have to think about that as well. I just think it’s the confidence of employers out there that needs to return.”

Watson said if the vaccination rollout doesn’t hit any major roadblocks, the economy could be running at 85 per cent of normal by the fall.

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Canada’s manufacturers ask for federal help as Montreal dockworkers stage partial-strike

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MONTREAL (Reuters) – Canada‘s manufacturers on Monday asked the federal government to curb a brewing labor dispute after dockworkers at the country’s second largest port said they will work less this week.

Unionized dockworkers, who are in talks for a new contract since 2018, will hold a partial strike starting Tuesday, by refusing all overtime outside of their normal day shifts, along with weekend work, they said in a statement on Monday.

The Canadian Union of Public Employees (CUPE) Quebec’s 1,125 longshore workers at the Port of Montreal rejected a March offer from the Maritime Employers Association.

The uncertainty caused by the labour dispute has led to an 11% drop in March container volume at the Montreal port on an annual basis, even as other eastern ports in North America made gains, the Maritime Employers Association said.

The move will cause delays in a 24-hour industry, the association said.

“Some manufacturers have had to redirect their containers to the Port of Halifax, incurring millions in additional costs every week,” said Dennis Darby, chief executive of the Canadian Manufacturers and Exporters (CME).

While the government strongly believes a negotiated agreement is the best option for all parties, “we are actively examining all options as the situation evolves,” a spokesman for Federal Labor Minister Filomena Tassi said.

Last summer’s stoppage of work cost wholesalers C$600 million ($478 million) in sales over a two-month period, Statistics Canada estimates.

($1 = 1.2563 Canadian dollars)

 

(Reporting By Allison Lampert in Montreal. Additional reporting by Julie Gordon in Ottawa; Editing by Marguerita Choy)

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Canada scraps export permits for drone technology to Turkey, complains to Ankara

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OTTAWA (Reuters) –Canada on Monday scrapped export permits for drone technology to Turkey after concluding that the equipment had been used by Azeri forces fighting Armenia in the enclave of Nagorno-Karabakh, Foreign Minister Marc Garneau said.

Turkey, which like Canada is a member of NATO, is a key ally of Azerbaijan, whose forces gained territory in the enclave after six weeks of fighting.

“This use was not consistent with Canadian foreign policy, nor end-use assurances given by Turkey,” Garneau said in a statement, adding he had raised his concerns with Turkish Foreign Minister Mevlut Cavusoglu earlier in the day.

Ottawa suspended the permits last October so it could review allegations that Azeri drones used in the conflict had been equipped with imaging and targeting systems made by L3Harris Wescam, the Canada-based unit of L3Harris Technologies Inc.

In a statement, the Turkish Embassy in Ottawa said: “We expect our NATO allies to avoid unconstructive steps that will negatively affect our bilateral relations and undermine alliance solidarity.”

Earlier on Monday, Turkey said Cavusoglu had urged Canada to review the defense industry restrictions.

The parts under embargo include camera systems for Baykar armed drones. Export licenses were suspended in 2019 during Turkish military activities in Syria. Restrictions were then eased, but reimposed during the Nagorno-Karabakh conflict.

Turkey’s military exports to Azerbaijan jumped sixfold last year. Sales of drones and other military equipment rose to $77 million in September alone before fighting broke out in the Nagorno-Karabakh region, data showed.

(Reporting by David Ljunggren in Ottawa and Tuvan Gumrukcu in Ankara; Writing by Daren Butler; Editing by Gareth Jones and Peter Cooney)

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Investigation finds Suncor’s Colorado refinery meets environmental permits

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By Liz Hampton

DENVER (Reuters) – A Colorado refinery owned by Canadian firm Suncor Energy Inc meets required environmental permits and is adequately funded, according to an investigation released on Monday into a series of emissions violations at the facility between 2017 and 2019.

The 98,000 barrel-per-day (bpd) refinery in the Denver suburb of Commerce City, Colorado, reached a $9-million settlement with the Colorado Department of Public Health and Environment (CDPHE) March 2020 to resolve air pollution violations that occurred since 2017. That settlement also addressed an incident in December 2019 that released refinery materials onto a nearby school.

As part of the settlement, Suncor was required to use a third party to conduct an independent investigation into the violations and spend up to $5 million to implement recommendations from the investigation.

Consulting firm Kearney’s investigation found the facility met environmental permit requirements, but also pinpointed areas for improvement, including personnel training and systems upgrades, some of which was already underway.

“We need to improve our performance and improve the trust people have in us,” Donald Austin, vice president of the Commerce City refinery said in an interview, adding that the refinery had already undertaken some of the recommendations from the investigation.

In mid-April, Suncor will begin a turnaround at the facility that includes an upgrade to a gasoline-producing fluid catalytic cracking unit (FCCU) at Plant 1 of the facility. That turnaround is anticipated to be complete in June 2021.

Suncor last year completed a similar upgrade of an automatic shutdown system for the FCCU at the refinery’s Plant 2.

By 2023, the company will also install an additional control unit, upgraded instrumentation, automated shutdown valves and new hydraulic pressure units in Plant 2.

Together, those upgrades will cost approximately $12 million, of which roughly $10 million is dedicated to Plant 2 upgrades, Suncor said on Monday.

 

(Reporting by Liz Hampton; Editing by Marguerita Choy)

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