SPY383.63+6.93 1.84%
DIA315.24+5.66 1.83%
IXIC12,920.15+196.68 1.55%

CANADA ECONOMICS: RBC Economics Says Brunt of January Job Less Borne by Low-Wage Workers

· 02/05/2021 06:30

11:18 AM EST, 02/05/2021 (MT Newswires) -- RBC senior economist Nathan Janzen on Friday said the bulk of the 213,000 jobs Canada shed in January came from low-paid workers in the accommodation and food services category as lockdowns closed their employers.

"Job losses were again heavily concentrated at the bottom end of the wage distribution," Janzen said in a note. "Employment was down (a huge) 629k from a year ago among people previously making $500/week or less. A large proportion of those were in the accommodation & food sector, but layoffs have been broadly concentrated at the low end of the wage scale across industries. By contrast, employment among those making more than $1200 per week was up just over 500k from last year in January. A large share of people losing work from lower wage jobs is not good news, but both the expanded EI and CRB programs pay a minimum of $500/week. The former program has already paid out almost $15 billion since September, the latter almost $9 billion."