MNI REALITY CHECK: Canada Job Market Frayed by Supply Upheaval

Canadian industry leaders told MNI the job market will remain challenged by disruptions to supply chains and health restrictions that are hurting demand for some products and making it hard to bring in workers for industries that want to expand.

Employment may rise by 100,000 in February to offset just part of the 266,000 jobs lost in the prior two months during the second wave of Covid-19 lockdowns. The unemployment rate is also expected to decline to 9.2% from 9.4% in a Statistics Canada report due Friday at 830am EST.

Hassan Yussuff, Canadian Labour Congress President:

"The longer the second wave goes on in some industries, it would be more problematic," said Yussuff, whose union represent more than 3 million workers. "Some employer has to lay off workers permanently and that's a real challenge for workers and the economy."

The job market appears flat after second-wave pandemic lockdowns that started towards the end of last year, he said. "We are going to see some stagnation in wages in the short term, but I'm confident with the economy's pickup we are able to accelerate the negotiation for wages."

The government has extended some jobless benefits into the summer and should also focus its next budget on money for retraining because "some jobs have gone completely," he said.

Todd Lewis, President, Agricultural Producers Association of Saskatchewan:

Farm production is getting stronger on balance because record revenue from oil seed crops is offsetting a recent slowdown in livestock, Lewis said. Finding workers is difficult because of restrictions on bringing in farmhands from abroad, he said, though pressure on wages is being held down by layoffs in the energy industry.

"There are producers that use temporary workers, and with the restrictions on international travel and restrictions on people traveling to the country, the cost, either money or time, of getting those workers in place are increasing, so it's been a challenge in many cases."

"Going through 2021 and future years, as long as demand stays strong and prices stay good we will see continued investment."

Robert Donald, Executive Director, Canadian Council for Aviation & Aerospace:

"Certainly, in Q1 there is no realistic expectation a recovery will start profiting this industry, and it is clear our sector continues to suffer dramatically," he said.

"Passenger demand had declined dramatically since the start of the pandemic until now, and it spilled over to manufacturing and maintenance in this industry, and a dramatic reduction in revenue results in a dramatic reduction in staffing especially at airlines."

"The longer the pandemic goes on, the more we will need harmonized clear science-based rules and regulations on what is required for passengers."