Canada sheds 200,000 jobs in January amid omicron spread

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Employment in Canada fell by 200,100 jobs in January when compared to December, Statistics Canada reported today. The agency noted many jurisdictions had implemented more strict public health measures amid the spread of the omicron coronavirus variant. Losses were felt in both full-time and part-time jobs; full-time employment fell by 82,700, and part-time employment fell by 117,400.

Losses were concentrated in the service sector. Goods-producing industries actually added 22,900 jobs in January; however, the services-producing sector’s loss of 223,100 jobs more than offset the gain in the goods-producing sector. The steepest loss was in the “accommodation and food services” industry, which saw employment fall by 112,900 jobs. The “information, culture and recreation” industry also reported a steep loss, down by 48,400 jobs.

The Canadian unemployment rate also rose for the first time in nine months. It was 6.5% in January, up from 6.0% in December.

Most of the job losses were in Ontario and Quebec. Employment in in Ontario fell by 145,700 jobs in January.