Canada outpaces US, recouping 55% of jobs lost to virus

Bloomberg

Canada’s economy recorded a third straight month of strong employment gains that have recouped more than half of losses from Covid-19.
Employment rose by 418,500 in July, bringing to 1.7 million the number of jobs reclaimed over the past three months. Canada lost 3 million jobs in March and April at the height of the pandemic. The employment rebound in Canada has outpaced the US, which has recovered 42% of its payroll losses.
The employment gains were largely expected as provinces, particularly Ontario, moved to more aggressively reopen their economies, prompting businesses to rehire workers. Economists, however, warn it could still take years before the labour market returns to pre-pandemic levels. A new concern in the July report was that that the bulk of the job gains were part-time.
“The numbers may speak to diminishing returns in re-opening,” said Brett House, deputy chief economist at Bank of Nova Scotia. “The relatively easy early gains have been made and adding
additional jobs could be harder.”
The hiring lowered the nation’s unemployment rate to 10.9%, from 12.3% previously.
Full-time positions rose by 73,200 in July, versus a 343,500 increase in part-time employment. Economists predicted a July increase of 380,000 jobs and an unemployment rate of 11%, according to the median forecast in a Bloomberg survey.
Hours worked gained for a third straight month, rising 5.3% from June. Still, the number of hours worked in July was still 88% of pre-pandemic levels in February. Payrolls in the US increased by 1.76 million in July, according to data from Labour Department, also beating expectations. The employment rebound in the US has been slower than in Canada, recouping 44% of losses in March and April.
While the rebound from the deep downturn has been strong, there are worries the jump in activity and spending will peter out. Economists aren’t predicting a full recovery of the labor market for at least another two years. Still, the numbers suggest the rebound remains at least somewhat resilient. The number of employed Canadians who worked less than half their usual hours because of the pandemic dropped by 412,000 in July, bringing Covid-related absences to just under 1 million, the statistics agency said. That number was at 2.5 million in April.
Employment increased in most provinces, led by a 151,000 gain in Ontario. Hiring was strong among services-related industries that have been hit hardest by the lockdowns, such as retail and restaurants.
Statistics Canada also released for the first time a breakdown of its data by race, which showed visible minorities have been hurt disproportionately by the crisis.