Canada’s job recovery in April saw a third lockdown and COVID-19 restrictions lead to new job losses.
The country lost 207,100 jobs last month, Statistics Canada reported from Ottawa on Friday, wiping out somewhat larger gains than the previous two months. Economists predict a fall of 150,000 in the Bloomberg survey. The unemployment rate rose to 8.1 percent in April from 7.5 percent a month earlier. The rate was less than 6 percent before the epidemic.
Despite the recession, analysts expect the economy to recover quickly in early June, once barriers to a return to full recovery are lifted – after previous locks. Most of the losses were confined to infectious sectors such as retail, food and shelter, which is an indication that the recession is not broad-based.
“Today’s employment data will not change the structural background for the Canadian economic recovery,” Monex Canada senior forex analyst Simon Harvey said in an email.
About half a million jobs in the Canadian economy are ashamed in the pre-epidemic stages. The Canadian dollar has not changed slightly since the report. Yields on Canada’s 10-year benchmark bond fell 1.49 percent in Toronto at 9:30 a.m. to 1.514 percent on Thursday.
The U.S. Department of Labor also released soft jobs data on Friday, which was even more disappointing. U.S. wages have risen just over 266,000 against estimates of a profit of 1 million.
“Today is a day,” Francis Donald, global chief economist and head of the macro strategy of Manlife Investment Management, told PNN Bloomberg Television. He said the lowest employment in the United States is a sign of the potential for the future because Canada has been following the growth path of the United States for six to nine months.
Overall, Canada’s labor market is recovering faster than the United States. This is one of the main reasons why the Bank of Canada has indicated that it is ready to withdraw its stimulus before the Federal Reserve, although soft jobs on both sides of the border may prompt a reconsideration of the pace of data retrieval.
The Bank of Canada stopped buying Canadian government bonds in April and is expected to do so again in the coming months as the recovery accelerates.
“April will be a very weak month for the economy,” Benjamin Reitzes, macro strategist at Canadian rates and BMO capital markets, said in an email. “Those who thought the Bank of Canada might decline again in July may reconsider.”
Rising viral cases due to the rapidly spreading variations and the release of a vaccine that has been plagued by delays and disruptions have prompted Canadian authorities in recent weeks to reintroduce drastic control measures that affect jobs in close liaison departments.
Friday’s work numbers suggest a rough start to the country’s economy in the second quarter. Working hours – which is closely related to output – fell 2.7 percent in April, the biggest monthly drop from the depths of the recession. April saw the first drop in full-time employment – down 129,400 in a full year.
However, there is a strong track record country for reversing after previous waves of the virus, which will increase the confidence that it will do the same again.
“The good news is that the curve is bending in some regions of the country and vaccinations are accelerating, both of which should help the labor market begin to recover as summer approaches.” Royce Mendes, Canadian Imperial economist, told the Bank of Commerce via email. “Evidence for recovery after the last wave suggests that job growth will show up relatively quickly once virus cases are brought under control.”