2,500 jobs lost in April

Northeast B.C. lost 2,500 jobs in April, spiking the regional unemployment rate more than three percentage points to 7.4%.

There were 36,500 people employed and 2,900 unemployed here last month, according to estimates released by Statistics Canada on May 8.

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That’s down from March, when the job count was down by just 300 to 39,000 in the first month of the Covid-19 pandemic and lockdown.

At this time last year, there were 37,500 employed and 3,700 unemployed, with unemployment reported at 9%.

B.C. as a whole continued its historic job market slide in April due to the pandemic, seeing the unemployment rate spike to 11.5% in April from 7.3% the previous month.

The provincial figures follow the general trend across the nation, where every province reported an unemployment rate higher than 10%. According to Statistics Canada, the overall job losses since February (15.7%) “far exceeds declines observed in previous labour market downturns.”

For comparison, the 1981-1982 recession saw an employment decline of only 5.4% during its 17 months.

In total, B.C. lost a staggering 264,100 jobs from March to April (and down 420,9000 compared with the same period last year). About 194,900 of those positions lost were full-time positions, statistics show.

Statistics Canada also said Metro Vancouver was among the hardest-hit metropolitan areas in the country, with employment from February to April falling 17.4% (or 256,000 jobs), outpacing Toronto (15.2% / 539,000) and only “bested” by Montreal (18% / 404,000). In April, the Vancouver CMA saw an unemployment rate of 10.8%, up 6.2 percentage points from March.

Provincially, the biggest declines in employment came in the services-producing sector (217,200 job losses), with accommodation/food services (75,700), wholesale/retail trade (35,500) and health care/social assistance (20,400) suffering the biggest losses on that front.

B.C. also saw a loss of 34,100 jobs in the construction sector on the goods-producing side of the economy, the report said.

Employment was down by just 200 in forestry, fishing, mining, quarrying, oil, and gas, while manufacturing jobs were down by 8,900, and in agriculture by 6,100.

At Site C, outside Fort St. John, BC Hydro has yet to report employment figures for April. In March, there were 4896 workers reported, though BC Hydro said the numbers do not reflect a scale down in construction activities due to the pandemic.

National unemployment

On the national front, the unemployment rate now sits at 13% - up 5.2 percentage points from March after the country lost almost 2 million positions in April.

Statistics Canada added the number could have been even worse if figures were adjusted to include people who weren’t counted as unemployed for “reasons specific to the COVID-19 economic shutdown.” That figure, Statistics Canada said, would have been 17.8%.

“They were not counted as unemployed, but were counted as not in the labour force because they did not look for work, presumably due to ongoing business closures and very limited opportunities to find new work,” the Statistics Canada report said.

Nationally, Quebec - which is also the province hardest hit by COVID-19 - also saw the highest unemployment rate at 17%.

In his analysis, BMO chief economist Douglas Porter said the numbers, while large, were actually “considerably smaller than the consensus view.” Porter said most analysts had been looking for a job drop of closer to 4 million - given that more than 7 million Canadians had applied for the Canada Emergency Benefit.

“The 5.2 percentage point rise in the jobless rate was considerably less than expected, and massively smaller than the 10.3 ppt spike in the U.S. jobless rate,” he said in the statement. “The big story here was a 3.7 ppt plunge in Canada’s participation rate to 59.8%, as more than 1 million [people] dropped out of the labour force.”

The U.S. drop in participation, Porter noted, was 5.2 percentage points. At 60.2%, this marks the first time since 2002 that the U.S. participation rate sits higher than its Canadian counterpart.

However, Port was also optimistic that - with “cautious re-openings” underway - an employment rebound may be in store for June and July.

— with a report from Chuck Chiang in Vancouver

Email Managing Editor Matt Preprost at editor@ahnfsj.ca.

© Copyright Alaska Highway News

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