Recently released payroll and hours data from May shows how the easing of coronavirus restrictions is affecting employment in Canada.
Average weekly earnings increased in May, according to the Survey of Employment, Payrolls, and Hours. This Statistics Canada survey provides monthly information on paid employment, earnings and hours worked in Canada. Although it predates the pandemic, it is currently monitoring the impact of the coronavirus on employment in Canada with the Labor Force Survey.
Although the total number of employees on the payroll fell 1.8%, average weekly earnings rose 2% to $ 1,139 in May. Average weekly earnings are calculated by dividing total weekly earnings by the number of employees.
This gain was offset by a 2% drop in the total number of hours worked in May compared to April. Between February and May, there was a loss of 16.9% of the total number of hours worked. At the same time, average weekly hours edged up, bringing the average number of hours worked per week to just over 34 hours.
Construction rebounds after the early easing of restrictions in Quebec
Construction increased paid employment in my country by 3.5% to reach 28,400 in May. It was the only sector to have recorded such gains, mainly due to the increase in the number of specialized contractors.
All the gains in construction were observed in Quebec, where residential construction was able to restart in mid-April.
National construction employment was still down about 20% from February. Average weekly earnings were up 2.6% to $ 1,315 in the construction industry from May 2019.
Retail sees low Job losses
Retail sales rose 18.7% in May, although they were still 20% below February’s level. The increase was partially observed in salaried employment.
Month-to-month job losses slowed. In April, the retail sector suffered a loss of nearly 279,000 people compared to May, when about 41,800 people lost their jobs. The total number of hours worked in retail trade in May increased by 2.6% from the previous month.
Some retail industries saw increases in payroll employment in May. Motor vehicle and parts dealers, as well as building material and garden equipment dealers, saw an increase of about 4%.
Average weekly earnings in the retail industry were $ 676 in May, up 10.5% from the same period last year.
Sectors with worse Impact
Accommodation and food services were the hardest hit in May. With a loss of 16.9%, reflecting 116,500 jobs, it experienced the largest decline in salaried employment. The sector has continued its downward trend since February, with nearly 770,400 job losses since February, the largest change in this period compared to any other sector. Average weekly earnings in food services and drinking places were $ 447.75 in May, the lowest of any subsector, but up 16.5% from May 2019.
Half a percentage point drops in mining, quarrying and oil and gas extraction, and manufacturing largely offset the increase in construction, a declared Statistics Canada. Salaried employment in mining, quarrying, and oil and gas support activities fell 27.5% since February. The average weekly earnings in this industry were $ 1,832, down 1.8% from May 2019. The manufacturing sector saw declines in all industries, and the number of salaried employees fell by 16 % since February, reflecting the loss of around 250,000 jobs.
In May, employment in the goods-producing sector was 16.7% below its February level, although the number of jobs edged up 0.3% or 7,300 jobs.
The arts, entertainment, and recreation sector continue to experience job losses. The sharp 557.7% drop from February to May was largely due to losses in the entertainment, gambling, and recreation industries. Performing arts, entertainment sports, and related industries also saw massive declines. Losses of lower-paid workers pushed average weekly earnings up 27.3% from a year earlier to $ 798.
The month of June sees recovery in the Employment rate
The Labor Force Survey released in early July indicated that the initial recovery in employment in Canada had been sharper than previous economic downturns. The coronavirus lockdown has caused employment to drop 15.7% in just two months. The 2008-09 recession, on the other hand, fell 2.5% in nine months.
The easing of coronavirus restrictions in May and June brought the initial recovery in employment to 9.2% of February levels. In previous economic deflations, the recovery in employment before the recession took two to five years.
The Labor Force Survey suggests that Canada’s labor market recovery was well underway in all provinces and most industries in June.
Statistics Canada’s Labor Force Survey for July is expected to be available next week. The Employment and Pay Hours Survey for June is expected to be released on August 27 and will provide more information on how COVID-19 has affected jobs, earnings, and hours in Canada.
Reference is taken from CIC News
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