A worker smooths concrete at a housing development in Toronto, Thursday, Jan. 16, 2020. THE CANADIAN PRESS/Cole Burston

A worker smooths concrete at a housing development in Toronto, Thursday, Jan. 16, 2020. THE CANADIAN PRESS/Cole Burston

Canada’s unemployment rate rose in January to highest level since August

The nation’s economy lost almost 213,000 jobs in January alone

Statistics Canada says the economy lost almost 213,000 jobs in January as employment fell to the lowest level since August last year, wiping out the gains made in the fall.

The unemployment rate rose 0.6 percentage points to 9.4 per cent, the highest rate since August.

Financial data firm Refinitiv says the average economist estimate was for a loss of 47,500 jobs in January and an unemployment rate of 8.9 per cent.

The losses were almost entirely concentrated in Ontario and Quebec, and mostly in the retail sector as lockdowns and restrictions closed many businesses.

Employment declines were heavy in the services sector and part-time work fuelling the largest monthly decline since April when some two million jobs were lost.

Statistics Canada says the losses in January now put the country 858,300 jobs, or 4.5 per cent, short of employment levels from last February just before the first wave of the COVID-19 pandemic.

The unemployment rate would have been 12 per cent in January had Statistics Canada included in its calculations Canadians who wanted to work but didn’t search for a job.

RELATED: Canada’s economy likely suffered its worst year on record, shrank by 5%: StatsCan

Losses in January marked a second straight month that the labour market contracted after 63,000 positions disappeared in December to break a streak of monthly gains that began in May 2020.

January’s employment figures show the “continuing challenge of balancing economic activity with the need to protect public health,” Statistics Canada notes in the report, and how restrictions hit specific sectors and groups of workers harder than others.

Leah Nord, senior director of workforce strategies at the Canadian Chamber of Commerce, says today’s “unfortunately bleak” jobs report points to a need to find a new way to manage the pandemic.

“We simply cannot afford to be in a holding pattern until vaccines arrive,” she says.

“We need new strategies to manage the pandemic. The economic costs may very well damage Canada’s economy and structurally alter our labour market in ways that may not easily be repaired.”

Jordan Press, The Canadian Press

READ MORE: Canadian economy lost 63,000 jobs in Dec., first decline since April

Jobs

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Rose Sawka, 91, reaches out to her son Terry Sawka, on a daily visit through the window, from inside Acropolis Manor where a COVID-19 outbreak took hold on Jan 19. Rose was vaccinated for the virus on Jan. 20 and as of Feb. 25 has remained virus free. (Photo: K-J Millar/The Northern View)
No increases of COVID-19 at Acropolis -16 residents now recovered

Vaccinations have helped to stabilize Prince Rupert long-term care facility virus numbers

A health care worker prepares to test a Coastal GasLink field worker for COVID-19. (Coastal GasLink photo)
Coastal GasLink begins COVID screening of pipeline workers

Construction is once again ramping up following Northern Health approval of COVID management plan

BC Bus North was implemented under the NDP provincial government in 2018 when Greyhound cancelled services across northern BC. The transportation funding expires at the end of March 2021. (Photo: B.C. Transit)
BC Liberals call for immediate govt. renewal of BC Bus North funding

BC Liberals spent years ignoring need for better transportation in the North - Jennifer Rice, MLA

Prince Rupert Tourism is benefitting from funding for new welcome and wayfinding signage from the COVID-19 Community Economic Recovery Infrastructure Program. McClymont Park on the gateway into Prince Rupert is one of the first things tourists see entering the city by road. (Photo: K-J Millar/The Northern View)
$695,000 Community Economic Recovery funds to benefit local organizations

Prince Rupert Tourism and Gitga’at Development Corporation to receive COVID-19 recovery funds

Wainwright Marine Services Ltd.’s “Ingenika” tugboat went missing in the Garner Canal area south and east of Kitimat on Feb. 11, resulting in two deaths and the rescue of a third man. (Wainwright Marine Photo)
Tug union demands Transport Canada protect workers along B.C. coast and rivers

ILWU makes safety demands following the deaths of two men and the rescue of a third

Langley resident Carrie MacKay shared a video showing how stairs are a challenge after spending weeks in hospital battling COVID-19 (Special to Langley Advance Times)
VIDEO: Stairs a challenge for B.C. woman who chronicled COVID-19 battle

‘I can now walk for six (to) 10 minutes a day’

(Black Press file photo)
Child in critical condition, homicide investigators probe incident near Agassiz

The child was transported to hospital but is not expected to survive

Sewage plant in Lower Mainland, operated by Metro Vancouver. (Metro Vancouver screenshot)
‘Poop tracker’ launches as researchers test Lower Mainland sewage water for COVID-19

‘Studying the virus in wastewater allows researchers to look at an entire population…’

(Pxhere)
Compensation fund opens for B.C. students negatively affected by incorrect exam marks

Marks for 2019 provincial exams were incorrectly tabulated

The humanoid sensing robot has a 3D printed finger cap that measures oxygen levels. (Dr. Woo Soo Kim)
Medical care robots being made with 3D origami in B.C. lab

Would you let a robot take your temperature?

B.C. Premier Gordon Campbell gets acquainted with Tsawwassen First Nation Chief Kim Baird’s 10-month-old daughter Sophia, husband Steve and four-year-old Amy at the B.C. legislature before a ceremony to endorse the Tsawwassen Treaty, Oct. 15, 2007. (Sharon Tiffin/Black Press)
Indigenous consent must come first and last for B.C. industrial projects

UN declaration seen as end to a history of horror stories

FILE  - In this Friday, Jan 1, 2021 file photo, a lorry driver's documents are scanned on a phone as he passes a checkpoint for the train through the Eurotunnel link with Europe in Folkestone, England. One month after Britain made a New Year split from the European Union's economic embrace, businesses that once traded freely are getting used to frustrating checks, delays and red tape. Meat exporters say shipments have rotted in trucks awaiting European health checks. Scottish fishermen have protested at Parliament over the catch they can no longer sell to the continent because of byzantine new paperwork. (AP Photo/Frank Augstein, File)
FINLAYSON: Government should focus on strengthening B.C.’s leading export industries

To revive the economy, this piece in the strategy is integral, writes Jock Finlayson

A cross-country skier glides along the banks of the Ottawa River in Ottawa on Thursday, Feb. 25, 2021. Canadians across the country can look forward to a mild spring peppered with the odd winter flashback throughout the first part of the season, according to predictions from one prominent national forecaster. THE CANADIAN PRESS/Sean Kilpatrick
Mild spring with some wintry blasts predicted for most of Canada: Weather Network

Weather Network is forecasting a slower than average start to spring in British Columbia

Most Read