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CANADA ECONOMICS: TD on Employment Figures Implications

· 02/05/2021 08:30

01:25 PM EST, 02/05/2021 (MT Newswires) -- Canada's labour market picture worsened in January as job losses mounted. Compared to February last year, there are now 858k fewer jobs in Canada, with the greatest deficits in the industries hardest hit by the pandemic (i.e. food and accommodation services and information, culture and recreation).

January's employment report also saw restrictions finally catch up to the retail industry. After posting gains throughout much of the pandemic period, retail employment took a tumble as the largest provinces levied tougher measures to stem the spread of the virus. Ontario and Quebec accounted for almost all of the decline in retail employment last month.

Looking ahead, the good news is that cases are trending down across the country, and provinces are contemplating gradually lifting restrictions. Alberta and Quebec will start loosening some measures this month, allowing for the recovery to get back on track. Still, the emergence of more contagious variants of the virus, and hiccups in the rollout of the vaccine, suggest that the road to full recovery remains a long one, TD said.