Employment falls by 43,000 in June
July 11, 2022
Employment fell by 43,000 (down 0.2 per cent) in June, offsetting the increase of 40,000 recorded in May.
“This marks the first employment decline not associated with a tightening of public health restrictions since the beginning of the COVID-19 pandemic,” says Statistics Canada.
The unemployment rate reached a new historic low of 4.9 per cent in June, down 0.2 percentage points from the previous record in May. The total number of unemployed workers fell by 54,000 (down 5.1 per cent) to 1.0 million.
The employment loss was almost entirely due to a decrease among workers aged 55 and older (down 51,000; down 1.2 per cent). It was little changed among youth aged 15 to 24 and the core-age population aged 25 to 54.
Recession worries
Canada’s economy is headed for a recession, according to a report from RBC.
“Economic growth has fired on all cylinders following pandemic shutdowns. But a historic labour squeeze, soaring food and energy prices and rising interest rates are now closing in. Those pressures will likely push the economy into a moderate contraction in 2023.”
Businesses are struggling to find the workers they need to expand production, says the bank.
“There were nearly 70 per cent more job openings in June than before the pandemic — and those hunting for staff were forced to compete for almost nine per cent fewer unemployed workers. Meantime, soaring prices are cutting into Canadians’ purchasing power at the pump and the grocery store.”
However, by historical standards, RBC expects the slowdown to be “modest,” as a 6.6 per cent unemployment rate would still be more than two percentage points below the 8.7 per cent peak in the 2008-09 recession.”
With many economists warning of an impending recession, and inflation at a 40-year high, three out of four (78 per cent of) American workers are fearful they will lose their jobs, according to a survey from Insight Global, a national staffing services company.
Source: HR Reporter
