The Canadian economy created 55,000 jobs in December, before COVID-19 cases began to increase at the end of the month, Statistics Canada reported on Friday.
In its labor force survey, the federal agency said the unemployment rate fell slightly to 5.9%, after settling at 6.0% in November.
This was the lowest unemployment rate since February 2020, before the pandemic. It was then 5.7%.
Statistics Canada’s report builds on the results of a survey conducted the week of December 5-11, before public health restrictions were put in place to slow the latest rise in COVID cases. 19.
The highly transmissible Omicron variant has fueled a massive spike in COVID-19 cases and caused a return to restrictions in many parts of the country, forcing many businesses to temporarily shut down or downsize.
Stephen Brown, Economist for Canada at Capital Economics, pointed out that even though the December report was positive, it seems inevitable that employment will fall in January due to the latest round of restrictions.
“The decline in restaurant visits alone is already compatible with a drop of 100,000 jobs in accommodation and food services, and employment in other service sectors with close physical proximity is likely to grow. will also weaken, ”Brown wrote in a report.
The overall increase in jobs in December was attributable to a gain of 123,000 full-time jobs, while part-time employment fell by 68,000.
The average hourly wage increased 2.7% from the previous year.
The job gain in December was fueled by the construction and educational services sectors.
The construction industry added 27,000 jobs in December, registering its first increase since August, but the sector is still 41,000 below its pre-pandemic level of February 2020.
Education Services welcomed 17,000 new employees in December.
Employment increased in Ontario and Saskatchewan, while it declined in Newfoundland and Labrador. The other provinces recorded little variation.
In Quebec, the unemployment rate edged up 0.1 percentage point to 4.6% in December, Statistics Canada said. Over one year, employment has grown by 3.8% in Quebec.
In New Brunswick, the unemployment rate fell 0.6 percentage points in December from the previous month to 7.9% – the same rate as in Nova Scotia, where it fell by 0.2 point. In Prince Edward Island, the unemployment rate fell 0.2 points from November to 7.8%.