The economy had been gaining jobs for seven months, but has reversed far short of where we were when the crisis began.
With Canada’s increasingly discredited political class doubling and tripling-down on ever-stricter lockdowns even as those lockdowns cause mental health damage, economic damage, and don’t get results, the labour market has seen a reversal.
Following historic job losses in early 2019, the economy had been gaining jobs for seven months in a row. However, those gains were still over 600,000 jobs short of where the labour market was before the crisis.
Now, those gains have reversed.
The economy lost a total of 62,600 jobs in December, as the unemployment rate rose to 8.6% from 8.5%.
Hours worked are down 0.3%.
Unsurprisingly – given the shutdowns ordered by politicians that have targeted small businesses – the service sector lost jobs, with part-time jobs leading the losses.
There was some positive news, as full-time jobs in manufacturing rose.
Public sector jobs also rose, but that is less sustainable, given rising budget deficits among governments at all levels.
Unfortunately, this rough economic news comes as the Liberal government is raising taxes on Canadians, and as provincial politicians push for further lockdowns and now even curfews, despite the political class ignoring the restrictions they demand on the rest of us.