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Omicron Slows Down the Employment Growth in Canada
Canada faces a job slump in Employment growth due to the new covid variant, Omicron. According to the latest study conducted by Labour Force Survey, Canada lost 200000 jobs in the month of January and unemployment rose to 6.5%.
The survey team also captured Canada’s labour data from the week of January 9 to 15. By then, Public health measures were imposed on the country such as limited capacity in retail stores, closures of restaurants, bars, concert halls, and gyms. Most of the schools also switched to online teaching.
Canadian provinces Ontario and Quebec largely drove employment. The accommodation and food industries were amongst the most affected ones. Young people aged between 15-24 and women aged between 25-54 years were more likely in the industries affected by closures. The core-aged people mostly belonged to the minorities, the employment rate descended by a similar rate in January (1.6 % to 79.8%).
The start of the year 2022 saw increased unemployment in the first nine months. Before the spread of Omicron, Canada’s unemployment was at 6% as stated by the December Labour Force Survey. The rise in unemployment last month was majorly due to temporary lay-offs and people who were supposed to join a new job in the near future. The total number of people looking for work was little changed.
There is a plethora of factors that affected the larger than expected dip of employment growth in Canada, including the closure of restaurants, in-person schooling, salons, and recreation in some provinces. With the major fall in the unemployment rate since April 2021, the country is seeing a decrease in both full and part-time jobs, yet it is still unclear that the fall is due to January-related seasonal cuts or voluntary resignations. Experts believe that the Omicron variant caused a major dent in the Canadian economy. However, they also believe that the damage is temporary and the country will bounce by relaxing the health measures.
