P.E.I. job numbers 'a step backward' in July

The unemployment rate on P.E.I. fell 3.5 percentage points in July, but the drop was caused by an increase in part-time work and thousands leaving the labour force.

Statistics Canada released the Labour Force Survey for July Friday morning.

The number of full-time jobs in the economy fell, from 63,100 to 61,800, but total employment was up with an increase in part-time jobs, from 10,500 to 12,900.

That increase in employment combined with 2,000 people leaving the job market to drive the unemployment rate down to 11.7 per cent.

"I feel this is a step backward," said UPEI economist George Jia.

"The overall job market is even weaker than June, especially with a 1,300 decline in the number of full-time jobs. Although the gain in the number of part-time jobs is twice as much, it certainly doesn't make up for it."

Levels up and down

The number of people in the labour force, those either working or looking for work, has been like a roller-coaster this year.

It hit an all-time high in February, at 87,600, then crashed to 77,700 during the height of pandemic restrictions on the economy in April. By June it had recovered to close to January levels, only to have Islanders exit the workforce again in July, with the number dropping to 84,700.

The percentage drop in the workforce on P.E.I. was the largest in the country in the figures announced Friday. Nationally, the workforce was up slightly.

Looking at the Island population as a whole, the percentage of people employed did not change much from June to July, but more of the people who were employed were in part-time jobs.

UPEI economist Jim Sentance noted that women, particularly young women, still seem to be having the hardest time in the pandemic job market.

"That fall in participation was largely something women and youth experienced," said Sentance.

"Significant drops in unemployment rates for those groups, again, largely due to the drop in participation, not more jobs."

All of the loss in the labour force was accounted for by women. The number of men working or looking for work was up slightly.

Nationally, the unemployment rate also fell, down 1.4 percentage points to 10.9 per cent. The trend across Canada was mostly for part-time jobs as well, but there was a slight increase in full-time employment.

Hard-hit sectors

While pandemic restrictions hit all sectors of the P.E.I. economy in April, some have recovered faster than others.

Jobs in goods-producing sectors were down 13.7 per cent in April compared to their January levels, but the July number was down by only five per cent.

Service sectors have been slower to recover. They were down 14.4 per cent in April compared to January, and were still down 7.6 per cent in July.

That slower recovery was mostly in two sectors.

• Wholesale and retail: -8.7 per cent.
• Accommodation and food services: -44.1 per cent.

In January, those two sectors accounted for about one fifth of the Island's jobs.

The opening of the Atlantic bubble, allowing for freer travel for residents of the four provinces east of Quebec, does not appear to have made a significant impact on employment in those sectors.

Later this month, Statistics Canada will release sales reports, with the retail sales report coming Aug. 21 and food services on Aug. 25.

The performance of these sectors helps explain the trouble women are having getting back to work, Jia said. He noted in accommodation and food services, traditionally 60 per cent of jobs are held by women.

"The year-over-year job loss among accommodation and food services is 2,500, which alone accounts for 62.5 per cent of the 4,000-job net loss on the Island," he said.

The losses here, along with those in retail and education, are causing considerable uncertainty for women in the near future, he said.

In an emailed statement, the provincial government said it was continuing to work to find jobs for Islanders.

"The global pandemic has impacted and continues to impact a number of Island workers in a variety of industries," the statement said.

"We have worked hard to continue to put supports in place to help address the labour impacts as a result of COVID-19."

The government noted it has already increased support for student summer jobs, directly providing employment for youth.

The government said it is continuing to talk with stakeholders to identify further opportunities to enhance supports for those most impacted by COVID-19.

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