A worker smooths concrete at a construction site in Toronto, Thursday, Jan. 16, 2020. Statistics Canada is expected to release its snapshot of the Canadian job market for December this morning. THE CANADIAN PRESS/Cole Burston

A worker smooths concrete at a construction site in Toronto, Thursday, Jan. 16, 2020. Statistics Canada is expected to release its snapshot of the Canadian job market for December this morning. THE CANADIAN PRESS/Cole Burston

Canadian economy lost 63,000 jobs in Dec., first decline since April

Statistics Canada said Friday the economy lost 63,000 jobs in December while the unemployment rate edged up to 8.6%

Canada posted its first monthly decline in jobs since April amid tightened public health restrictions in December, and economists warn the losses are likely to continue in January as the number of new COVID-19 cases continue to rise.

Statistics Canada said Friday the economy lost 63,000 jobs in December while the unemployment rate edged up to 8.6 per cent compared with 8.5 per cent in November.

“Due to both the continuing rise in virus cases to open the new year and the further curtailments of activity since the last survey, another month of job losses could be on the horizon in January,” CIBC senior economist Royce Mendes said.

“The weak jobs report, combined with the recent appreciation of the Canadian dollar, will put pressure on the Bank of Canada to ease monetary policy further.”

Statistics Canada said its report was a snapshot of labour market conditions for the week of Dec. 6 to 12. It noted that additional public health measures were put in place in many provinces after that period and would likely to be reflected in its January labour force survey results.

Several provinces have also further extended COVID-19 restrictions as public health officials blamed holiday gatherings for a rise in infections.

TD Bank senior economist Sri Thanabalasingam said the resurgence of the virus is hitting Canada hard.

“Sharp increases in caseloads and hospitalizations are leaving provinces with little choice but to impose or prolong restrictions on an economy that is but a shadow of itself,” Thanabalasingam wrote in a report.

“It will be a rocky road for the Canadian economy until vaccines can be widely distributed and normal life can resume.”

Mendes noted that when the restrictions began to ease last spring and summer, the rebound in the economy came quickly.

“The good news is that last summer we saw a pretty sharp snapback at a time when virus cases were low and public health restrictions were eased, so that should give people some optimism that after this rough patch is hopefully behind us, the economy can bounce back quite well in the short-term,” he said.

The job losses in December ended a streak of monthly job gains that began in May, when initial restrictions put in place to slow the spread of the pandemic began to ease.

Full-time employment in December rose by 36,500, but there was a loss of 99,000 part-time jobs.

Statistics Canada said that total hours worked fell for the first time since April as they declined 0.3 per cent in December.

By April last year the COVID-19 economic shutdown had directly affected 5.5 million Canadian workers, including 3.0 million who had lost their job and 2.5 million who were employed but had experienced COVID-related absences from work.

The number affected was 1.1 million in December, including a drop in employment of 636,000 since February and 488,000 more Canadians who were employed but working less than half their usual hours for reasons likely related to COVID.

December employment fell in industries most directly affected by the new and continuing public health measures.

The number of jobs in the services-producing side of the economy fell for the first time since April as it lost a total of 74,000 in December. The goods-producing sector gained 11,300 jobs.

The accommodation and food services industry lost 56,700 jobs for the month, while the “other services” category, which includes hair salons, laundry services and other areas affected by public health measures, lost 30,800. The information, culture and recreation group lost 18,800.

However, the manufacturing sector gained 15,000 jobs in December, driven by an increase in Ontario.

The share of Canadians working from home was 28.6 per cent in December.

Financial data firm Refinitiv says economists on average had expected the report to show a loss of 27,500 jobs for December. The unemployment rate was expected to be 8.6 per cent.

Craig Wong, The Canadian Press

Like us on Facebook and follow us on Twitter.

Want to support local journalism? Make a donation here.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

A GoFundMe has been launched in memory of an eight-year-old boy who drowned at a Hotel Zed pool in Victoria on March 24. (Jane Andema/GoFundMe)
GoFundMe started in memory of 8-year-old boy who died at Hotel Zed pool

Child drowned after wandering off to the pool alone

The family of Iris McNeil, shown here with members of her family, has launched a petition to deny parole for the man who murdered McNeil in 1997. (Family photo)
Family fights killer’s release from Metchosin institution

Shortreed serving an indeterminate sentence at William Head Institution

This image shows northbound traffic on Highway 17 looking to turn west onto Keating Cross Road (far right top corner), crossing the southbound lane on Highway 17. A new flyover overpass promises to ease delays and improve safety, but the Saanich Peninsula Chamber of Commerce is calling for revisions in joining other critics. (Screencap/Ministry of Transportation and Infrastructure)
Saanich Peninsula Chamber of Commerce calls for revisions to Central Saanich flyover overpass

Chamber deems current proposal necessary but insufficient in calling for full movement interchange

The Capital Regional Hospital District has approved awarding a tender to QM Environmental for the demolition and hazardous materials disposal of the Oak Bay Lodge. (Black Press Media File)
Winning bidder approved for Oak Bay Lodge demolition

Capital Regional Hospital District board approves $4.266 million budget for project

A driver stopped by Saanich police following a road rage incident on April 15 was found to be impaired, in violation of a license restriction and in a damaged vehicle. They received a 90-day driving prohibition and a 30-day vehicle impound. (Saanich Police Traffic Safety Unit/Twitter)
Driver stopped on Pat Bay Highway after road rage reports fails breathalyzer test: police

Several witnesses reported driver to Saanich police, school officer intercepted

Rainbow trouts thrashing with life as they’re about to be transferred to the largest lake of their lives, even though it’s pretty small. These rainbows have a blue tinge because they matched the blue of their hatchery pen, but soon they’ll take on the green-browns of their new home at Lookout Lake. (Zoe Ducklow/News Staff)
VIDEO: Lookout Lake stocked with hatchery trout to delight of a seniors fishing club

The Cherish Trout Scouts made plans to come back fishing soon

Paper Excellence took over Catalyst Paper operations in B.C. in 2018. (Paper Excellence photo)
The plane blasted through an airport fence and down a hill, before stopping before a cement barrier on Highway 5A, right in front of a school bus. Photo submitted.
Student pilot crashes plane onto Highway 5A almost hitting school bus

Aircraft hit pavement right in front of school bus

Eight-year-old Piper and her family were raising money to help Guinevere, the bearded dragon, get a gynecological surgery. Sadly, the reptile didn’t survive the procedure. (Jackee Sullivan/Special to Langley Advance Times)
Lizard fails to survive surgery, GoFundMe dollars help Langley family offset medical bills

Guinevere, a pet bearded dragon, underwent an ovariectomy on Tuesday

B.C. Premier John Horgan wears a protective face mask to help prevent the spread of COVID-19. THE CANADIAN PRESS/Jonathan Hayward
B.C. Premier John Horgan booked to get AstraZeneca shot Friday

‘Let’s show all British Columbians that the best vaccine is the one that’s available to you now,’ he said

Doses of the Moderna COVID‑19 vaccine in a freezer trailer, to be transported to Canada during the COVID-19 pandemic. THE CANADIAN PRESS/Nathan Denette
Pfizer to increase vaccine deliveries in Canada as Moderna supply slashed

Moderna plans to ship 650,000 doses of its vaccine to Canada by the end of the month, instead of the expected 1.2 million

Dr. Bonnie Henry speaks about the province’s COVID-19 vaccine plans during a news conference at the legislature in Victoria. THE CANADIAN PRESS/Chad Hipolito
P.1 variant likely highest in B.C. due to more testing for it: Dr. Henry

Overall, just under 60% of new daily cases in the province involve variants

(Black Press Media file photo)
POLL: Do you have a plan in place in the event of a tsunami?

Tsunamis have claimed the lives of more than 250,000 people between 1998… Continue reading

Anyone with information on any of these individuals is asked to call 1-800-222-TIPS (8477) or visit the website victoriacrimestoppers.ca for more information.
Greater Victoria Crime Stoppers wanted list for the week of April 13

Greater Victoria Crime Stoppers is seeking the public’s help in locating the… Continue reading

Most Read