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Employment Fell in Quebec and Rose in Ontario in August
By Joëlle Noreau, Senior Economist
HIGHLIGHTS
f Quebec’s labour market has floundered for the last two months, seeing a drop of 11,000 jobs in August after recording an increase of 7,500 jobs the previous month.
f In August, part-time employment posted a decline (-22,300) that far outweighed the full-time jobs created (+11,300).
f Despite a drop in the number of workers, the unemployment rate fell from 6.1% in July to 5.8% in August. The labour force (-25,400) saw a sharper decrease than employment.
f Ontario recorded 53,000 jobs created, following an increase of 72,400 in July. The delayed reopening of Ontario’s economy was felt in the labour market in June, July and August.
f The unemployment rate fell from 8.0% in July to 7.6% last month.
f The unemployment rates for both Quebec and Ontario are the lowest recorded since February 2020.
COMMENTS
After a remarkable increase of 72,300 jobs in June, employment has since stagnated in Quebec. In August, the largest drops were seen in information, culture and recreation (-13,100) and educational services (-8,100). The goods sector has returned to 96.0% of its employment level in February 2020, while the services sector has reached 99.2%. In Ontario, the strongest gains were in accommodation and food services (+50,600), education (+27,100) and information, culture and recreation (+26,900). Compared to their pre-pandemic employment levels, the goods sector is at 97.7%, while the services sector is at 99.5%.
ECONOMIC STUDIES | SEPTEMBER 10, 2021
IMPLICATIONS
August’s employment figures weren’t able to reach those of February 2020. The labour market doesn’t follow a linear path, and there are still restrictions in certain sectors. The spread of the Delta variant has already delayed employees’ return to a number of office buildings, and it’s unclear whether new restrictive measures will be necessary. While the Quebec and Ontario economies have enough steam to continue growing and generating jobs, the labour shortage is another force at work.
It will be interesting to see how the labour market performs this fall.
GRAPH 1
Ontario is nearing its February 2020 employment level more quickly
Sources: Statistics Canada and Desjardins, Economic Studies In thousands
6,300 6,500 6,700 6,900 7,100 7,300 7,500 7,700
3,400 3,600 3,800 4,000 4,200 4,400 4,600
FEBRUARY MAY AUGUST NOVEMBER FEBRUARY MAY AUGUST Quebec (left) Ontario (right)
2020 2021
In thousands
LEVEL COMPARED TO FEBRUARY 2020
Quebec 98.5%
Ontario 99.1%
