Chapter 1: Labour market context

The COVID-19 pandemic and public health measures in Canada

Over FY2122, with increased public immunity (through vaccination and infection) to the COVID-19 disease, governments and businesses in Canada began to ease up on public health restrictions and resume regular economic activities. During this period, the Canadian economy experienced a fast recovery overall with some intermittent fluctuations due to subsequent waves of COVID-19.

FY2122 started with the peak of the third wave of the COVID-19 pandemic in April 2021 (consult Chart 1), which led to public health measures being tightened again in several provinces. In addition, temporary travel restrictions and the closure of the Canada-United States border^{Footnote 4} were extended. At the same time, the national vaccination campaign was underway, and by August 2021, around 67% of eligible people in Canada had received 2 vaccine doses and more than 73% had received at least 1 dose.^{Footnote 5} This contributed to decisions by many of provincial governments to start to progressively ease public health measures in their jurisdictions, leading to more businesses re-opening. 

When the fourth wave of the COVID-19 pandemic began in September 2021, close to 4 out of 5 eligible Canadians had already received 2 vaccine doses. Some public health measures were renewed at this time but their economic impact was milder than during previous waves. The fifth and strongest wave of COVID-19 began in early November 2021 with the emergence of the Omicron variant, leading to unprecedented numbers of COVID-19 infections in Canada. In late November, the Government of Canada adjusted international travel measures and some provinces renewed public health restrictions, including postponing return to school after the winter break, reducing indoor gathering capacity limits, and tightening restrictions on restaurants, bars, entertainment activities. These restrictions were gradually eased in early 2022 with this fifth wave coming under control.

Text description for chart 1

Date	Daily cases
2020-01-31	-
2020-02-08	3
2020-02-16	1
2020-02-21	1
2020-02-24	1
2020-02-25	1
2020-02-26	1
2020-02-27	1
2020-02-29	2
2020-03-01	9
2020-03-03	9
2020-03-05	12
2020-03-06	6
2020-03-07	6
2020-03-08	5
2020-03-09	15
2020-03-11	26
2020-03-12	38
2020-03-13	38
2020-03-15	54
2020-03-16	88
2020-03-17	99
2020-03-18	157
2020-03-19	276
2020-03-20	131
2020-03-21	367
2020-03-22	100
2020-03-23	620
2020-03-24	701
2020-03-25	617
2020-03-26	634
2020-03-27	646
2020-03-28	736
2020-03-29	833
2020-03-30	1,179
2020-03-31	1,111
2020-04-01	1,065
2020-04-02	1,670
2020-04-03	1,254
2020-04-04	1,367
2020-04-05	1,608
2020-04-06	1,155
2020-04-07	1,230
2020-04-08	1,392
2020-04-09	1,476
2020-04-10	1,383
2020-04-11	1,169
2020-04-12	1,066
2020-04-13	1,297
2020-04-14	1,383
2020-04-15	1,318
2020-04-16	1,711
2020-04-17	1,792
2020-04-18	1,469
2020-04-19	1,432
2020-04-20	2,045
2020-04-21	1,591
2020-04-22	1,769
2020-04-23	1,920
2020-04-24	1,778
2020-04-25	1,466
2020-04-26	1,541
2020-04-27	1,605
2020-04-28	1,526
2020-04-29	1,571
2020-04-30	1,639
2020-05-01	1,825
2020-05-02	1,653
2020-05-03	2,760
2020-05-04	1,298
2020-05-05	1,274
2020-05-06	1,449
2020-05-07	1,426
2020-05-08	1,512
2020-05-09	1,268
2020-05-10	1,146
2020-05-11	1,133
2020-05-12	1,175
2020-05-13	1,121
2020-05-14	1,211
2020-05-15	1,126
2020-05-16	1,251
2020-05-17	1,138
2020-05-18	1,070
2020-05-19	1,040
2020-05-20	1,011
2020-05-21	1,201
2020-05-22	1,156
2020-05-23	1,141
2020-05-24	1,078
2020-05-25	1,012
2020-05-26	936
2020-05-27	872
2020-05-28	993
2020-05-29	906
2020-05-30	772
2020-05-31	757
2020-06-01	758
2020-06-02	705
2020-06-03	675
2020-06-04	641
2020-06-05	609
2020-06-06	722
2020-06-07	642
2020-06-08	545
2020-06-09	409
2020-06-10	472
2020-06-11	405
2020-06-12	413
2020-06-13	467
2020-06-14	377
2020-06-15	360
2020-06-16	320
2020-06-17	386
2020-06-18	367
2020-06-19	409
2020-06-20	390
2020-06-21	318
2020-06-22	300
2020-06-23	326
2020-06-24	279
2020-06-25	380
2020-06-26	172
2020-06-27	238
2020-06-28	218
2020-06-29	668
2020-06-30	286
2020-07-01	-
2020-07-02	567
2020-07-03	319
2020-07-04	226
2020-07-05	219
2020-07-06	399
2020-07-07	232
2020-07-08	267
2020-07-09	371
2020-07-10	321
2020-07-11	221
2020-07-12	244
2020-07-13	565
2020-07-14	331
2020-07-15	341
2020-07-16	437
2020-07-17	405
2020-07-18	330
2020-07-19	339
2020-07-20	786
2020-07-21	573
2020-07-22	543
2020-07-23	432
2020-07-24	534
2020-07-25	350
2020-07-26	355
2020-07-27	686
2020-07-28	397
2020-07-29	412
2020-07-30	393
2020-07-31	513
2020-08-01	287
2020-08-02	285
2020-08-03	147
2020-08-04	761
2020-08-05	395
2020-08-06	374
2020-08-07	424
2020-08-08	236
2020-08-09	230
2020-08-10	681
2020-08-11	289
2020-08-12	423
2020-08-13	390
2020-08-14	418
2020-08-15	237
2020-08-16	198
2020-08-17	785
2020-08-18	282
2020-08-19	336
2020-08-20	383
2020-08-21	499
2020-08-22	257
2020-08-23	267
2020-08-24	750
2020-08-25	323
2020-08-26	448
2020-08-27	401
2020-08-28	492
2020-08-29	363
2020-08-30	267
2020-08-31	1,008
2020-09-01	477
2020-09-02	498
2020-09-03	570
2020-09-04	631
2020-09-05	371
2020-09-06	400
2020-09-07	247
2020-09-08	1,606
2020-09-09	546
2020-09-10	630
2020-09-11	702
2020-09-12	515
2020-09-13	518
2020-09-14	1,351
2020-09-15	793
2020-09-16	944
2020-09-17	1,120
2020-09-18	1,044
2020-09-19	863
2020-09-20	875
2020-09-21	1,766
2020-09-22	1,248
2020-09-23	1,090
2020-09-24	1,341
2020-09-25	1,362
2020-09-26	1,215
2020-09-27	1,454
2020-09-28	2,176
2020-09-29	1,660
2020-09-30	1,797
2020-10-01	1,777
2020-10-02	2,124
2020-10-03	1,812
2020-10-04	1,685
2020-10-05	2,804
2020-10-06	2,363
2020-10-07	1,800
2020-10-08	2,436
2020-10-09	2,558
2020-10-10	2,062
2020-10-11	1,685
2020-10-12	975
2020-10-13	4,042
2020-10-14	2,506
2020-10-15	2,345
2020-10-16	2,374
2020-10-17	2,215
2020-10-18	1,827
2020-10-19	3,289
2020-10-20	2,251
2020-10-21	2,672
2020-10-22	2,788
2020-10-23	2,584
2020-10-24	2,227
2020-10-25	2,145
2020-10-26	4,109
2020-10-27	2,674
2020-10-28	2,699
2020-10-29	2,956
2020-10-30	3,457
2020-10-31	3,445
2020-11-01	3,244
2020-11-02	3,273
2020-11-03	2,974
2020-11-04	3,283
2020-11-05	3,922
2020-11-06	3,669
2020-11-07	4,246
2020-11-08	4,594
2020-11-09	4,086
2020-11-10	4,302
2020-11-11	4,559
2020-11-12	4,981
2020-11-13	4,741
2020-11-14	5,267
2020-11-15	4,805
2020-11-16	4,802
2020-11-17	4,276
2020-11-18	4,641
2020-11-19	4,642
2020-11-20	4,968
2020-11-21	5,705
2020-11-22	5,418
2020-11-23	5,713
2020-11-24	4,889
2020-11-25	5,022
2020-11-26	5,631
2020-11-27	5,967
2020-11-28	6,496
2020-11-29	6,476
2020-11-30	6,103
2020-12-01	5,329
2020-12-02	6,307
2020-12-03	6,493
2020-12-04	6,300
2020-12-05	6,999
2020-12-06	6,987
2020-12-07	6,499
2020-12-08	5,981
2020-12-09	6,295
2020-12-10	6,739
2020-12-11	6,771
2020-12-12	6,710
2020-12-13	6,580
2020-12-14	6,731
2020-12-15	6,352
2020-12-16	6,416
2020-12-17	7,008
2020-12-18	6,707
2020-12-19	6,895
2020-12-20	6,693
2020-12-21	6,381
2020-12-22	6,196
2020-12-23	6,845
2020-12-24	6,796
2020-12-25	4,092
2020-12-26	8,129
2020-12-27	5,903
2020-12-28	5,790
2020-12-29	6,441
2020-12-30	7,477
2020-12-31	8,446
2021-01-01	7,512
2021-01-02	7,437
2021-01-03	7,137
2021-01-04	7,911
2021-01-05	7,447
2021-01-06	8,372
2021-01-07	8,340
2021-01-08	8,766
2021-01-09	8,665
2021-01-10	8,320
2021-01-11	6,849
2021-01-12	6,287
2021-01-13	6,860
2021-01-14	7,565
2021-01-15	6,809
2021-01-16	7,063
2021-01-17	7,080
2021-01-18	5,225
2021-01-19	4,679
2021-01-20	5,744
2021-01-21	5,955
2021-01-22	5,957
2021-01-23	5,651
2021-01-24	5,323
2021-01-25	4,630
2021-01-26	4,011
2021-01-27	4,204
2021-01-28	4,877
2021-01-29	4,690
2021-01-30	4,663
2021-01-31	4,397
2021-02-01	3,736
2021-02-02	2,828
2021-02-03	3,234
2021-02-04	4,083
2021-02-05	4,022
2021-02-06	3,729
2021-02-07	3,668
2021-02-08	2,967
2021-02-09	2,677
2021-02-10	3,185
2021-02-11	3,181
2021-02-12	3,143
2021-02-13	3,499
2021-02-14	2,862
2021-02-15	2,522
2021-02-16	2,387
2021-02-17	2,605
2021-02-18	3,314
2021-02-19	3,091
2021-02-20	3,219
2021-02-21	2,825
2021-02-22	2,878
2021-02-23	2,790
2021-02-24	2,896
2021-02-25	3,134
2021-02-26	3,219
2021-02-27	3,295
2021-02-28	2,852
2021-03-01	2,596
2021-03-02	2,457
2021-03-03	2,812
2021-03-04	2,832
2021-03-05	3,363
2021-03-06	2,876
2021-03-07	3,025
2021-03-08	3,037
2021-03-09	2,820
2021-03-10	3,223
2021-03-11	3,022
2021-03-12	3,459
2021-03-13	3,539
2021-03-14	3,445
2021-03-15	2,846
2021-03-16	2,819
2021-03-17	3,384
2021-03-18	3,599
2021-03-19	4,214
2021-03-20	4,010
2021-03-21	3,866
2021-03-22	3,775
2021-03-23	3,606
2021-03-24	4,041
2021-03-25	5,200
2021-03-26	5,095
2021-03-27	5,364
2021-03-28	5,126
2021-03-29	4,574
2021-03-30	4,878
2021-03-31	5,513
2021-04-01	5,805
2021-04-02	6,921
2021-04-03	6,822
2021-04-04	6,448
2021-04-05	6,267
2021-04-06	6,520
2021-04-07	7,146
2021-04-08	7,995
2021-04-09	9,243
2021-04-10	8,542
2021-04-11	8,656
2021-04-12	8,539
2021-04-13	7,542
2021-04-14	8,598
2021-04-15	9,570
2021-04-16	9,341
2021-04-17	8,867
2021-04-18	8,524
2021-04-19	8,311
2021-04-20	7,275
2021-04-21	8,419
2021-04-22	8,381
2021-04-23	8,738
2021-04-24	8,305
2021-04-25	7,829
2021-04-26	7,203
2021-04-27	7,069
2021-04-28	7,749
2021-04-29	8,343
2021-04-30	8,340
2021-05-01	8,450
2021-05-02	7,828
2021-05-03	7,565
2021-05-04	6,688
2021-05-05	7,390
2021-05-06	8,001
2021-05-07	7,826
2021-05-08	7,398
2021-05-09	7,297
2021-05-10	6,338
2021-05-11	5,382
2021-05-12	6,212
2021-05-13	6,619
2021-05-14	6,000
2021-05-15	5,710
2021-05-16	5,396
2021-05-17	4,588
2021-05-18	4,034
2021-05-19	4,247
2021-05-20	5,052
2021-05-21	4,682
2021-05-22	4,000
2021-05-23	3,738
2021-05-24	3,151
2021-05-25	2,502
2021-05-26	2,592
2021-05-27	2,965
2021-05-28	3,204
2021-05-29	2,718
2021-05-30	2,473
2021-05-31	2,109
2021-06-01	1,638
2021-06-02	2,062
2021-06-03	2,169
2021-06-04	2,060
2021-06-05	1,887
2021-06-06	1,521
2021-06-07	1,232
2021-06-08	1,268
2021-06-09	1,403
2021-06-10	1,479
2021-06-11	1,425
2021-06-12	1,385
2021-06-13	1,233
2021-06-14	949
2021-06-15	807
2021-06-16	1,048
2021-06-17	1,107
2021-06-18	1,012
2021-06-19	959
2021-06-20	802
2021-06-21	560
2021-06-22	621
2021-06-23	725
2021-06-24	708
2021-06-25	668
2021-06-26	668
2021-06-27	505
2021-06-28	660
2021-06-29	602
2021-06-30	548
2021-07-01	604
2021-07-02	428
2021-07-03	416
2021-07-04	524
2021-07-05	379
2021-07-06	438
2021-07-07	554
2021-07-08	567
2021-07-09	770
2021-07-10	391
2021-07-11	475
2021-07-12	272
2021-07-13	336
2021-07-14	381
2021-07-15	425
2021-07-16	397
2021-07-17	380
2021-07-18	498
2021-07-19	265
2021-07-20	339
2021-07-21	400
2021-07-22	570
2021-07-23	618
2021-07-24	517
2021-07-25	675
2021-07-26	436
2021-07-27	578
2021-07-28	765
2021-07-29	894
2021-07-30	907
2021-07-31	769
2021-08-01	1,086
2021-08-02	701
2021-08-03	737
2021-08-04	958
2021-08-05	1,447
2021-08-06	1,520
2021-08-07	1,367
2021-08-08	1,810
2021-08-09	1,209
2021-08-10	1,346
2021-08-11	1,861
2021-08-12	2,141
2021-08-13	2,416
2021-08-14	2,259
2021-08-15	1,885
2021-08-16	1,979
2021-08-17	1,780
2021-08-18	2,418
2021-08-19	2,732
2021-08-20	2,962
2021-08-21	2,878
2021-08-22	2,843
2021-08-23	2,058
2021-08-24	2,333
2021-08-25	3,326
2021-08-26	3,364
2021-08-27	3,768
2021-08-28	3,918
2021-08-29	3,167
2021-08-30	2,735
2021-08-31	2,909
2021-09-01	3,838
2021-09-02	4,048
2021-09-03	4,161
2021-09-04	4,023
2021-09-05	4,134
2021-09-06	2,958
2021-09-07	3,319
2021-09-08	3,641
2021-09-09	4,178
2021-09-10	4,628
2021-09-11	4,861
2021-09-12	4,225
2021-09-13	3,897
2021-09-14	4,044
2021-09-15	4,283
2021-09-16	4,689
2021-09-17	5,094
2021-09-18	4,536
2021-09-19	4,335
2021-09-20	3,857
2021-09-21	3,818
2021-09-22	3,852
2021-09-23	4,618
2021-09-24	4,605
2021-09-25	4,952
2021-09-26	4,333
2021-09-27	4,279
2021-09-28	3,488
2021-09-29	4,278
2021-09-30	4,588
2021-10-01	4,417
2021-10-02	4,427
2021-10-03	3,634
2021-10-04	3,403
2021-10-05	2,814
2021-10-06	3,716
2021-10-07	4,100
2021-10-08	4,128
2021-10-09	3,701
2021-10-10	3,530
2021-10-11	2,657
2021-10-12	2,323
2021-10-13	2,640
2021-10-14	3,193
2021-10-15	3,438
2021-10-16	3,347
2021-10-17	2,894
2021-10-18	2,272
2021-10-19	2,257
2021-10-20	2,642
2021-10-21	2,894
2021-10-22	2,762
2021-10-23	2,551
2021-10-24	2,280
2021-10-25	1,856
2021-10-26	1,773
2021-10-27	2,496
2021-10-28	2,666
2021-10-29	2,592
2021-10-30	2,375
2021-10-31	2,056
2021-11-01	1,937
2021-11-02	1,853
2021-11-03	2,224
2021-11-04	2,577
2021-11-05	2,533
2021-11-06	2,754
2021-11-07	2,442
2021-11-08	2,138
2021-11-09	2,387
2021-11-10	2,601
2021-11-11	2,716
2021-11-12	2,628
2021-11-13	2,638
2021-11-14	2,310
2021-11-15	2,171
2021-11-16	1,915
2021-11-17	2,422
2021-11-18	2,754
2021-11-19	2,875
2021-11-20	2,895
2021-11-21	2,461
2021-11-22	2,305
2021-11-23	2,235
2021-11-24	2,606
2021-11-25	2,878
2021-11-26	4,357
2021-11-27	3,020
2021-11-28	2,619
2021-11-29	2,332
2021-11-30	2,352
2021-12-01	3,146
2021-12-02	3,222
2021-12-03	3,497
2021-12-04	3,608
2021-12-05	3,401
2021-12-06	2,876
2021-12-07	2,967
2021-12-08	3,530
2021-12-09	4,258
2021-12-10	4,756
2021-12-11	4,929
2021-12-12	4,306
2021-12-13	4,149
2021-12-14	4,388
2021-12-15	5,875
2021-12-16	7,125
2021-12-17	9,173
2021-12-18	9,402
2021-12-19	10,605
2021-12-20	10,673
2021-12-21	11,679
2021-12-22	15,002
2021-12-23	20,693
2021-12-24	15,969
2021-12-25	17,402
2021-12-26	15,024
2021-12-27	49,148
2021-12-28	27,053
2021-12-29	32,120
2021-12-30	40,002
2021-12-31	45,837
2022-01-01	46,118
2022-01-02	45,329
2022-01-03	38,077
2022-01-04	37,408
2022-01-05	39,433
2022-01-06	43,137
2022-01-07	44,331
2022-01-08	41,056
2022-01-09	38,588
2022-01-10	34,174
2022-01-11	28,949
2022-01-12	32,475
2022-01-13	31,357
2022-01-14	31,670
2022-01-15	28,896
2022-01-16	28,538
2022-01-17	23,606
2022-01-18	21,163
2022-01-19	22,297
2022-01-20	23,949
2022-01-21	23,161
2022-01-22	21,301
2022-01-23	19,993
2022-01-24	13,863
2022-01-25	14,165
2022-01-26	18,489
2022-01-27	18,497
2022-01-28	17,695
2022-01-29	15,520
2022-01-30	13,561
2022-01-31	10,721
2022-02-01	11,077
2022-02-02	15,097
2022-02-03	14,215
2022-02-04	14,122
2022-02-05	11,500
2022-02-06	10,311
2022-02-07	7,877
2022-02-08	8,853
2022-02-09	11,139
2022-02-10	10,632
2022-02-11	10,190
2022-02-12	11,205
2022-02-13	7,811
2022-02-14	5,801
2022-02-15	6,034
2022-02-16	8,016
2022-02-17	7,583
2022-02-18	7,023
2022-02-19	7,545
2022-02-20	4,803
2022-02-21	4,729
2022-02-22	5,555
2022-02-23	6,374
2022-02-24	6,927
2022-02-25	6,742
2022-02-26	6,224
2022-02-27	4,795
2022-02-28	5,902
2022-03-01	3,921
2022-03-02	6,907
2022-03-03	5,995
2022-03-04	6,769
2022-03-05	5,436
2022-03-06	4,092
2022-03-07	5,654
2022-03-08	5,925
2022-03-09	6,034
2022-03-10	5,686
2022-03-11	6,169
2022-03-12	5,179
2022-03-13	5,023
2022-03-14	3,939
2022-03-15	6,427
2022-03-16	5,856
2022-03-17	5,631
2022-03-18	5,284
2022-03-19	6,968
2022-03-20	5,413
2022-03-21	3,142
2022-03-22	9,562
2022-03-23	5,207
2022-03-24	5,928
2022-03-25	5,951
2022-03-26	7,930
2022-03-27	7,051
2022-03-28	4,018
2022-03-29	15,847
2022-03-30	6,880
2022-03-31	7,127

• Source: Public Health Agency of Canada

Global economic development

On February 24, 2022, Russia launched a full-scale invasion of Ukraine. The impacts have been felt throughout the world’s economy including Canada and many of Canada’s important trading partners.^{Footnote 6} International supply chains were interrupted and energy and food prices surged, resulting in global inflation rates surging to multi-decade highs in the second half of 2022 (consult Chart 4, for Canada) and causing uncertainty in the economic development of many countries, including Canada.

Canadian economic context in FY2122

During FY2122, the global economy had been recovering strongly from the COVID-19 pandemic, especially in advanced economies. In Canada, real Gross Domestic Product (GDP) increased by 5.7% compared to FY2021.^{Footnote 7} By the end of FY2122, the real GDP level was 3.2% higher than its pre-pandemic level.

Looking at quarterly movement, the third wave of the COVID-19 pandemic slowed economic growth in the first quarter of FY2122 (-2.3%), but a robust growth resumed in the 2 quarters that followed (+5.8% and +6.9%) (consult Chart 2). While the Canadian economy slowed again in the last quarter of FY2122 (+2.8%) due to the reintroduction of public health measures in response to the Omicron variant and widespread worker absences due to the disease, the economic impact was less severe than during previous waves.

Text description for chart 2

Quarter	Gross domestic product (left scale)	Gross domestic product growth (right scale)
Q1FY1920	$2.11	4.0%
Q2FY1920	$2.12	1.5%
Q3FY1920	$2.12	1.3%
Q4FY1920	$2.08	-8.2%
Q1FY2021	$1.85	-37.1%
Q2FY2021	$2.02	41.3%
Q3FY2021	$2.06	8.8%
Q4FY2021	$2.09	5.3%
Q1FY2122	$2.08	-2.3%
Q2FY2122	$2.11	5.8%
Q3FY2122	$2.14	6.9%
Q4FY2122	$2.16	2.8%

• Source: Statistics Canada, Table 36-10-0104-01.

Over FY2122, recovery remained uneven across sectors (consult Chart 3). In March 2022, 8 out of 16 main industries had fully recovered output losses stemming from the first months of the COVID‑19 pandemic. Among these, Professional, scientific and technical services (+6.8%); Finance insurance, real estate, rental and leasing (+5.8%); and Public administration (+4.1%) saw the highest growth relative to February 2020. Among the remaining 8 industries, output was still lagging compared to their pre-pandemic levels. Accommodation and food services, Transportation and warehousing, and Business, building and other support services were the most affected compared to February 2020, with growth of -10.7%, ‑9.8%, and -9.6%. These 3 sectors were affected by the continuous supply chain disruptions,^{Footnote 8} and changes in work patterns (such as teleworking arrangements).

Text description for chart 3

Industry	Change in real GDP
Professional, scientific and technical services	6.8%
Finance, insurance, real estate, rental and leasing	5.8%
Public administration	4.1%
Health care and social assistance	3.8%
Wholesale and retail trade	3.3%
Construction	3.2%
Educational services	2.1%
Manufacturing	0.9%
Agriculture, forestry, fishing and hunting	-0.7%
Utilities	-1.6%
Other services (except public administration)	-1.9%
Information and culture and recreation**	-2.0%
Mining, quarrying, and oil and gas extraction	-3.7%
Business, building and other support services*	-9.6%
Transportation and warehousing	-9.8%
Accommodation and food services	-10.7%

• ^* Includes management of companies and enterprises and administrative and support, waste management and remediation services.
• ^** Includes information and cultural industries and arts, entertainment and recreation industries.
• Source: Statistics Canada, Table 36-10-0434-01.

Faced with high demand, supply chain disruptions and labour shortages in FY2122, Canadian firms passed the higher costs of production onto consumers. The war in Ukraine also added to inflationary pressure through increased prices for energy and other commodities and pre-existing supply chain disruptions. The inflation rate rose in FY2122, especially in the last two quarters, well above its target level of 2% set by the Bank of Canada. The year-over-year rate of increase of the all-item Consumer Price Index (CPI), or the CPI inflation, rose from 2.2% in March 2021 to 6.7% in March 2022, comparable to the highs experienced in early 1990s (consult Chart 4). ^{Footnote 9} In response to rising inflation and inflation expectations, the Bank of Canada increased interest rates in March 2022 for the first time since the onset of the COVID-19 pandemic, a process that was continued for the remainder of the year 2022.

Text description for chart 4

Month	12-month CPI change rate
Jan-1996	1.6%
Feb-1996	1.3%
Mar-1996	1.5%
Apr-1996	1.4%
May-1996	1.5%
Jun-1996	1.5%
Jul-1996	1.3%
Aug-1996	1.5%
Sep-1996	1.5%
Oct-1996	1.8%
Nov-1996	1.9%
Dec-1996	2.2%
Jan-1997	2.2%
Feb-1997	2.3%
Mar-1997	1.9%
Apr-1997	1.7%
May-1997	1.5%
Jun-1997	1.7%
Jul-1997	1.7%
Aug-1997	1.8%
Sep-1997	1.7%
Oct-1997	1.5%
Nov-1997	0.9%
Dec-1997	0.8%
Jan-1998	1.1%
Feb-1998	1.0%
Mar-1998	1.0%
Apr-1998	0.9%
May-1998	1.1%
Jun-1998	1.0%
Jul-1998	1.0%
Aug-1998	0.9%
Sep-1998	0.7%
Oct-1998	1.1%
Nov-1998	1.2%
Dec-1998	1.0%
Jan-1999	0.7%
Feb-1999	0.7%
Mar-1999	1.0%
Apr-1999	1.6%
May-1999	1.5%
Jun-1999	1.6%
Jul-1999	1.9%
Aug-1999	2.1%
Sep-1999	2.6%
Oct-1999	2.3%
Nov-1999	2.2%
Dec-1999	2.6%
Jan-2000	2.2%
Feb-2000	2.7%
Mar-2000	3.0%
Apr-2000	2.2%
May-2000	2.4%
Jun-2000	2.8%
Jul-2000	2.9%
Aug-2000	2.6%
Sep-2000	2.7%
Oct-2000	2.8%
Nov-2000	3.2%
Dec-2000	3.2%
Jan-2001	3.0%
Feb-2001	2.9%
Mar-2001	2.4%
Apr-2001	3.5%
May-2001	3.9%
Jun-2001	3.4%
Jul-2001	2.7%
Aug-2001	2.8%
Sep-2001	2.6%
Oct-2001	1.9%
Nov-2001	0.6%
Dec-2001	0.7%
Jan-2002	1.3%
Feb-2002	1.4%
Mar-2002	1.9%
Apr-2002	1.7%
May-2002	1.1%
Jun-2002	1.2%
Jul-2002	2.1%
Aug-2002	2.5%
Sep-2002	2.3%
Oct-2002	3.2%
Nov-2002	4.4%
Dec-2002	3.8%
Jan-2003	4.5%
Feb-2003	4.7%
Mar-2003	4.2%
Apr-2003	2.9%
May-2003	2.8%
Jun-2003	2.6%
Jul-2003	2.1%
Aug-2003	2.0%
Sep-2003	2.2%
Oct-2003	1.6%
Nov-2003	1.6%
Dec-2003	2.1%
Jan-2004	1.3%
Feb-2004	0.7%
Mar-2004	0.8%
Apr-2004	1.7%
May-2004	2.4%
Jun-2004	2.5%
Jul-2004	2.3%
Aug-2004	1.8%
Sep-2004	1.8%
Oct-2004	2.3%
Nov-2004	2.4%
Dec-2004	2.1%
Jan-2005	1.9%
Feb-2005	2.1%
Mar-2005	2.3%
Apr-2005	2.4%
May-2005	1.6%
Jun-2005	1.7%
Jul-2005	2.0%
Aug-2005	2.6%
Sep-2005	3.2%
Oct-2005	2.6%
Nov-2005	2.0%
Dec-2005	2.1%
Jan-2006	2.8%
Feb-2006	2.2%
Mar-2006	2.2%
Apr-2006	2.4%
May-2006	2.8%
Jun-2006	2.4%
Jul-2006	2.3%
Aug-2006	2.1%
Sep-2006	0.7%
Oct-2006	1.0%
Nov-2006	1.4%
Dec-2006	1.7%
Jan-2007	1.1%
Feb-2007	2.0%
Mar-2007	2.3%
Apr-2007	2.2%
May-2007	2.2%
Jun-2007	2.2%
Jul-2007	2.2%
Aug-2007	1.7%
Sep-2007	2.5%
Oct-2007	2.4%
Nov-2007	2.5%
Dec-2007	2.4%
Jan-2008	2.2%
Feb-2008	1.8%
Mar-2008	1.4%
Apr-2008	1.7%
May-2008	2.2%
Jun-2008	3.1%
Jul-2008	3.4%
Aug-2008	3.5%
Sep-2008	3.4%
Oct-2008	2.6%
Nov-2008	2.0%
Dec-2008	1.2%
Jan-2009	1.1%
Feb-2009	1.4%
Mar-2009	1.2%
Apr-2009	0.4%
May-2009	0.1%
Jun-2009	-0.3%
Jul-2009	-0.9%
Aug-2009	-0.8%
Sep-2009	-0.9%
Oct-2009	0.1%
Nov-2009	1.0%
Dec-2009	1.3%
Jan-2010	1.9%
Feb-2010	1.6%
Mar-2010	1.4%
Apr-2010	1.8%
May-2010	1.4%
Jun-2010	1.0%
Jul-2010	1.8%
Aug-2010	1.7%
Sep-2010	1.9%
Oct-2010	2.4%
Nov-2010	2.0%
Dec-2010	2.4%
Jan-2011	2.3%
Feb-2011	2.2%
Mar-2011	3.3%
Apr-2011	3.3%
May-2011	3.7%
Jun-2011	3.1%
Jul-2011	2.7%
Aug-2011	3.1%
Sep-2011	3.2%
Oct-2011	2.9%
Nov-2011	2.9%
Dec-2011	2.3%
Jan-2012	2.5%
Feb-2012	2.6%
Mar-2012	1.9%
Apr-2012	2.0%
May-2012	1.2%
Jun-2012	1.5%
Jul-2012	1.3%
Aug-2012	1.2%
Sep-2012	1.2%
Oct-2012	1.2%
Nov-2012	0.8%
Dec-2012	0.8%
Jan-2013	0.5%
Feb-2013	1.2%
Mar-2013	1.0%
Apr-2013	0.4%
May-2013	0.7%
Jun-2013	1.2%
Jul-2013	1.3%
Aug-2013	1.1%
Sep-2013	1.1%
Oct-2013	0.7%
Nov-2013	0.9%
Dec-2013	1.2%
Jan-2014	1.5%
Feb-2014	1.1%
Mar-2014	1.5%
Apr-2014	2.0%
May-2014	2.3%
Jun-2014	2.4%
Jul-2014	2.1%
Aug-2014	2.1%
Sep-2014	2.0%
Oct-2014	2.4%
Nov-2014	2.0%
Dec-2014	1.5%
Jan-2015	1.0%
Feb-2015	1.0%
Mar-2015	1.2%
Apr-2015	0.8%
May-2015	0.9%
Jun-2015	1.0%
Jul-2015	1.3%
Aug-2015	1.3%
Sep-2015	1.0%
Oct-2015	1.0%
Nov-2015	1.4%
Dec-2015	1.6%
Jan-2016	2.0%
Feb-2016	1.4%
Mar-2016	1.3%
Apr-2016	1.7%
May-2016	1.5%
Jun-2016	1.5%
Jul-2016	1.3%
Aug-2016	1.1%
Sep-2016	1.3%
Oct-2016	1.5%
Nov-2016	1.2%
Dec-2016	1.5%
Jan-2017	2.1%
Feb-2017	2.0%
Mar-2017	1.6%
Apr-2017	1.6%
May-2017	1.3%
Jun-2017	1.0%
Jul-2017	1.2%
Aug-2017	1.4%
Sep-2017	1.6%
Oct-2017	1.4%
Nov-2017	2.1%
Dec-2017	1.9%
Jan-2018	1.7%
Feb-2018	2.2%
Mar-2018	2.3%
Apr-2018	2.2%
May-2018	2.2%
Jun-2018	2.5%
Jul-2018	3.0%
Aug-2018	2.8%
Sep-2018	2.2%
Oct-2018	2.4%
Nov-2018	1.7%
Dec-2018	2.0%
Jan-2019	1.4%
Feb-2019	1.5%
Mar-2019	1.9%
Apr-2019	2.0%
May-2019	2.4%
Jun-2019	2.0%
Jul-2019	2.0%
Aug-2019	1.9%
Sep-2019	1.9%
Oct-2019	1.9%
Nov-2019	2.2%
Dec-2019	2.2%
Jan-2020	2.4%
Feb-2020	2.2%
Mar-2020	0.9%
Apr-2020	-0.2%
May-2020	-0.4%
Jun-2020	0.7%
Jul-2020	0.1%
Aug-2020	0.1%
Sep-2020	0.5%
Oct-2020	0.7%
Nov-2020	1.0%
Dec-2020	0.7%
Jan-2021	1.0%
Feb-2021	1.1%
Mar-2021	2.2%
Apr-2021	3.4%
May-2021	3.6%
Jun-2021	3.1%
Jul-2021	3.7%
Aug-2021	4.1%
Sep-2021	4.4%
Oct-2021	4.7%
Nov-2021	4.7%
Dec-2021	4.8%
Jan-2022	5.1%
Feb-2022	5.7%
Mar-2022	6.7%

• Note: The grey band indicates Bank of Canada’s 1-3% control range for the inflation target with inflation measured as the 12-month rate of change in the consumer price index (CPI), Bank of Canada, Monetary Policy Report, July 2022.
• Source: Statistics Canada, Table 18-10-0004-01.

The COVID-19 pandemic has brought a challenging environment for many Canadian businesses. The impact was uneven on firms; it hit harder to small businesses in high-contact service industries. However, with governments’ financial support, many businesses managed cash flow pressures in spite of falls in revenues. Default risks was generally contained. By the end of FY2122, 4 out of 5 businesses reported capacity pressures related to labour or supply chain challenges. This is reflected in job vacancy figures reported in this chapter.^{Footnote 10,Footnote 11}

On the international horizon, among G7 countries—a group consisting of the world’s major industrialized and advanced countries including Canada^{Footnote 12}—real GDP in Canada grew by 5.7% in FY2122^{Footnote 13} compared to FY2021. By the end of FY2122, economic output in all G7 countries, except for Japan and Italy, had returned to pre-pandemic levels. Canada continued to enjoy a high standard of living and ranked third among G7 nations in terms of real GDP per capita (using fixed Purchasing Power Parity) with roughly US$45,600 per capita on average over FY2122.^{Footnote 14}

Labour force growth and the labour force participation rate

In FY2122, the size of the total Canadian labour force^{Footnote 18} grew by 2.8% (+556,780, from 20.0 million to 20.6 million) relative to FY2021. Compared to its pre-pandemic level recorded in February 2020, the size of the overall Canadian labour market stood 1.8% higher by March 2022. With population aging, the labour force for youth (15 to 24 years old), constrained by its decreasing size of population, was the only group still slightly below its pre-pandemic level (-0.6%) compared to the labour force for individuals aged 25 to 54 years and those aged 55 years and over (+2.7% and +0.6% respectively).

During the 12-month period of FY2122, the growth in the size of the labour force outpaced that of the working age population, leading to an increase in the overall participation rate. Accounting for the negative impact of the COVID-19 at the onset of the pandemic at the beginning of FY2021, the overall participation rate increased from 64.3% in FY2021 to 65.5% in FY2122. However, the participation rate in March 2022 (65.6%) remained slightly lower than what was observed in February 2020 (65.9%).

Compared to its pre-pandemic levels, the participation rate for individuals aged 25 to 54 years was higher in March 2022 (+1.2 percentage points, or p.p.) while it stood at the same level for youth. However, among population 55 years old and over, as the size of the working age population grew faster than the size of the labour force, the participation rate for this age group was still 1.4 p.p. lower. This could be explained by the share of those aged 65 and older among the age group 55 and over that continues to increase, which lower the overall participation rate for the group.

Employment growth

During the reporting period, total employment continued a gradual upward trend, increasing from 18.0 million in FY2021 to 19.2 million in FY2122 (+6.6%). Part-time employment, which was more impacted by the COVD-19 pandemic, grew stronger than full-time employment (+10.0% versus +5.9%) in FY2122 compared to FY2021. As shown in Chart 5, by September 2021, employment regained its pre-pandemic level recorded in February 2020, and by the end of March 2022, employment was 2.3% higher than its pre-pandemic level (+439,900). By March 2022, both full-time employment and part-time employment had surpassed their pre-pandemic levels recorded in February 2020 (by +2.6% and +1.0% respectively).  

Text description for chart 5

Month	Total employment (in millions)
Feb-20	19.22340
Mar-20	18.07500
Apr-20	16.08360
May-20	16.39540
Jun-20	17.43120
Jul-20	17.84760
Aug-20	18.07290
Sep-20	18.50140
Oct-20	18.56610
Nov-20	18.60250
Dec-20	18.53980
Jan-21	18.35300
Feb-21	18.62250
Mar-21	18.87510
Apr-21	18.67810
May-21	18.61940
Jun-21	18.87290
Jul-21	18.98200
Aug-21	19.05240
Sep-21	19.21860
Oct-21	19.25510
Nov-21	19.39430
Dec-21	19.47320
Jan-22	19.28600
Feb-22	19.64380
Mar-22	19.66330

• Source: Statistics Canada, Labour Force Survey, Table 14-10-0287-01.

Employment by class of worker^{Footnote 19}

Public health measures imposed at the onset of the COVID-19 pandemic in 2020 led to massive lay-offs in the private sector (consult Chart 6). By the end of March 2022, the size of employment for public and private sectors were above their pre-pandemic levels recorded in February 2020 (+9.7% and +1.9% respectively). However, by the end of FY2122, self-employment was well below its pre-COVID level (‑5.7%). During the decade before the pandemic, self-employment persistently accounted for around 15% of total employment. It stood at 13.8% in FY2122.

Text description for chart 6

Month	Public sector employees	Private sector employees	Self-employed
Feb-20	100	100	100
Mar-20	96	93	99
Apr-20	94	78	97
May-20	94	81	96
Jun-20	95	88	97
Jul-20	96	91	96
Aug-20	97	93	94
Sep-20	101	95	93
Oct-20	101	96	94
Nov-20	101	96	95
Dec-20	102	96	93
Jan-21	102	94	93
Feb-21	103	96	93
Mar-21	104	98	95
Apr-21	104	96	95
May-21	104	95	95
Jun-21	105	97	93
Jul-21	104	98	92
Aug-21	105	99	92
Sep-21	107	100	92
Oct-21	107	100	91
Nov-21	107	101	92
Dec-21	108	101	92
Jan-22	108	100	92
Feb-22	108	102	91
Mar-22	108	103	93

• Source: Statistics Canada, Labour Force Survey, Table 14-10-0288-01.

Employment by industry and firm size^{Footnote 20}

During FY2122, employment continued to grow in most industries. 11 out of 16 broad industrial groups saw employment fully recover to pre-pandemic levels recorded in February 2020. However, employment in Agriculture (-16.5%); Accommodation and food services (‑14.7%); Other services (-9.1%); Business, building and other support services (-8.1%); and Transportation and warehousing (-4.3%) was still below pre-pandemic levels (consult Chart 7). Employment in these industrial groups was more affected by public health measures aiming to control the COVID-19 pandemic waves, such as closure^{Footnote 21} of non-essential businesses, teleworking arrangements, border closures that reduced the number of foreign workers, and supply chain interruptions.

Text description chart 7

Industry	Change in total employment by industry Feb 2020 to March 2022
Agriculture	-16.5%
Accommodation and food services	-14.7%
Other services (except public administration)	-9.1%
Business, building and other support services	-8.1%
Transportation and warehousing	-4.3%
Construction	1.9%
Wholesale and retail trade	2.2%
Total employed, all industries	2.3%
Manufacturing	2.8%
Utilities	3.5%
Health care and social assistance	3.8%
Information, culture and recreation	3.8%
Forestry, fishing, mining, quarrying, oil and gas	6.8%
Finance, insurance, real estate, rental and leasing	8.0%
Educational services	9.8%
Public administration	11.3%
Professional, scientific and technical services	13.2%

• Source: Statistics Canada, Labour Force Survey, Table 14-10-0355-01.

Compared to FY2021, employment grew in enterprises of all sizes.^{Footnote 22} The distribution of employment across enterprises of various sizes in FY2122 mostly recovered to its pre-pandemic allocation recorded in FY1920. In FY2122, 19.8% of employment was in small-sized enterprises, 19.1% in small-to-medium sized enterprises, 15.3% in medium-to-large sized enterprises and 45.9% in large-sized enterprises.^{Footnote 23}

Employment by age group

Employment increased among workers of all age groups during FY2122 as the labour market continued its recovery. Employment growth was most pronounced for youth who were hard hit with pandemic job losses (+16.1% compared to +5.4% and +4.8%, respectively, among workers aged 25 to 54 years and workers aged 55 years and over). Focusing on the recovery, with successive waves of closures and reopenings in the industries where youth are generally overrepresented (for example, Accommodation and food services; and Wholesale and retail trade), youth employment had a more volatile recovery path. It dropped in May 2021 (due to the 3rd wave) and January 2022 (due to the 5th wave) (consult Chart 8). In February 2022, it finally surpassed its pre-pandemic level recorded in February 2020. Employment in the 25 to 54 age group recovered faster than for youth and surpassed its pre-pandemic level as early as in September 2021, while employment for the 55 years old and over age group returned to its pre-pandemic levels in March 2022.

Text description chart 8

Month	15 to 24 years	25 to 54 years	55 years and over
Feb-20	100	100	100
Mar-20	83	96	95
Apr-20	65	87	86
May-20	66	88	88
Jun-20	77	94	91
Jul-20	82	95	93
Aug-20	85	96	94
Sep-20	91	98	95
Oct-20	90	98	96
Nov-20	90	98	97
Dec-20	88	98	97
Jan-21	84	97	97
Feb-21	89	98	98
Mar-21	93	99	100
Apr-21	90	98	98
May-21	87	98	98
Jun-21	94	99	99
Jul-21	96	99	99
Aug-21	98	99	99
Sep-21	99	101	99
Oct-21	99	101	98
Nov-21	100	102	99
Dec-21	100	102	99
Jan-22	96	102	99
Feb-22	101	103	100
Mar-22	101	103	101

• Source: Statistics Canada, Labour Force Survey, Table 14-10-0287-01.

Employment by gender

Though women’s employment was impacted more by the COVID-19 pandemic than that of men in FY2021, it recovered more quickly during FY2122. Compared to the previous fiscal year, total employment of women grew by 7.4% in FY2122 compared to 5.9% for men. By the end of FY2122, employment for both genders was higher than their pre-pandemic levels recorded in February 2020 (+2.1% among men and +2.5% among women). Employment of men working part-time was above its pre-pandemic level in March 2022 (+2.7%), whereas employment of women working part-time was closed to (+0.1%) its pre-pandemic level.

Employment rates

Employment growth may be shaped by demographic trends such as growth in the working-age population or by improved labour market conditions. In order to examine net job creation in the Canadian labour market, this section looks at the employment rate indicator, that is the proportion of the working age population 15 years and over who are currently employed.

On yearly basis, in FY2122, the employment rate was up by 3.2 p.p., increasing from 57.8% in FY2021 to 61.0% (consult Table 1). Yet, it was still below its pre-pandemic level recorded in FY1920 (61.9%) and also below its historical peak of 63.4% recorded in FY0708. The employment rate for men increased by 3.0 p.p., slightly below the increase of 3.4 p.p. for women between FY2021 and FY2122. Higher rates were also registered for individuals across all 3 age groups in FY2122 (+8.2 p.p. for youth, +3.8 p.p. for those aged 25 to 54 years and +1.0 p.p. for those aged 55 years and over, respectively) compared to FY2021.

Focusing on the recovery path between time points of February 2020 and March 2022, the employment rate recovered to its pre-pandemic level for women (by +0.2 p.p.). However, it was still slightly below its pre-pandemic level for men (by -0.1 p.p.) By age group, only employment rate for youth and individuals aged 25 to 54 years had fully recovered (+0.9 p.p. and +1.5 p.p. respectively). For those aged 55 years and over the employment rate remained below its pre-pandemic level ( 1.3 p.p.), mostly due to the increasing share of those aged 65 and over among the age group, as they tend to have low employment rate.

• Note: Percentage point change is based on unrounded numbers.
• Source: Statistics Canada, Labour Force Survey, Table 14-10-0287-01.

Compared to other G7 countries, Canada registered the largest increase in employment rate between FY2021 and FY2122. With this, Canada ranked first in terms of employment rate in FY2122, up from the fourth place in FY2021.^{Footnote 24}

Unemployment rates

Unemployment rate is one of the core elements that determines eligibility for EI regular benefits. Under EI original rules, a lower unemployment rate in an EI economic region translates into a higher required number of hours of insurable employment within the qualifying period to be eligible for EI regular benefits. The unemployment rate in an EI economic region also plays a role in determining the EI regular benefit entitlement available to a claimant and the number of weeks of earnings (knows as divisor) used in the calculation of their weekly benefit rate. Regional variations of the unemployment rate are discussed in subsection 1.3. Consult section 2.1 in Chapter II to learn how the different EI temporary measures affected the eligibility for, and entitlement to, EI regular benefits.

With the reopening of businesses and tightening labour market conditions, the number of unemployed individuals decreased significantly in FY2122, from 2.0 million in FY2021 to 1.4 million in FY2122, registering a 31.0% decline. Combined with the increase in the size of the Canadian labour force during the same period, the unemployment rate dropped from 10.2% in FY2021 to 6.8% in FY2122 (consult Table 2). The unemployment rate decreased at similar pace for men and women between FY2021 and FY2122 while it decreased at varied paces across age groups. The unemployment rate for youth experienced the largest drop (-9.0 p.p.), followed by that for the 25 to 54 age group (-2.7 p.p.) and the 55 years old and over age group (-1.6 p.p.).

The unemployment rates for youth and individuals aged 25 to 54 years registered lower levels in March 2022 compared to February 2020, with youth seeing the largest decline (-1.4 p.p.). This is mainly because the labour force for youth was still below its pre-pandemic level due to faster drop in the number of unemployed (-13.6%) among youth. However, the unemployment rate for individuals aged 55 years and over was slight above its pre-pandemic level (+0.1 p.p.) The unemployment rate for women was the same as its pre-pandemic level, while that for men was slightly lower (-0.8 p.p.) (consult Table 2).

• Note: Percentage point change is based on unrounded numbers.
• Source: Statistics Canada, Labour Force Survey, Table 14-10-0287-01.

Before the COVID-19 pandemic, the monthly unemployment rate hit a historical low of 5.4% in May 2019 (consult Chart 9). It peaked at 14.1% in May 2020 at the onset of the pandemic and trended down afterwards with small increases associated with subsequent pandemic waves. During FY2122, the unemployment rate rose slightly in January 2022 due to the impact of the fifth wave but resumed its downward trend afterwards. In March 2022, the unemployment rate stood at a new historical low level of 5.3%, indicating tighter conditions in the Canadian labour market. This was not only lower than the pre-pandemic level of 5.7% recorded in February 2020, but it also registered a new historical low of monthly unemployment rate since comparable data became available in January 1976.

Text description chart 9

Month	Unemployment rate
Apr-19	5.7%
May-19	5.4%
Jun-19	5.6%
Jul-19	5.8%
Aug-19	5.8%
Sep-19	5.6%
Oct-19	5.6%
Nov-19	5.9%
Dec-19	5.6%
Jan-20	5.5%
Feb-20	5.7%
Mar-20	8.4%
Apr-20	13.6%
May-20	14.1%
Jun-20	12.4%
Jul-20	11.0%
Aug-20	10.2%
Sep-20	9.2%
Oct-20	9.0%
Nov-20	8.7%
Dec-20	8.9%
Jan-21	9.2%
Feb-21	8.5%
Mar-21	7.6%
Apr-21	8.2%
May-21	8.2%
Jun-21	7.8%
Jul-21	7.5%
Aug-21	7.2%
Sep-21	7.1%
Oct-21	6.6%
Nov-21	6.2%
Dec-21	6.0%
Jan-22	6.5%
Feb-22	5.4%
Mar-22	5.3%

• Source: Statistics Canada, Labour Force Survey, Table 14-10-0287-01.

Internationally, Canada posted the second largest decline in unemployment rate among the G7 countries in FY2122 compared to FY2021. Canada recorded the third highest unemployment rates in FY2122 among the G7, just below France and Italy.^{Footnote 25} Unemployment rate rose sharply in Canada and in the United States at the onset of the pandemic, whereas there were relatively small increases in the remaining G7 countries. As noted by the Organization for Economic Co-Operation and Development (OECD), the heterogeneity of the impact on unemployment across OECD countries reflected fundamental differences in countries’ policy mix to cushion the economic and social effects of the crisis.^{Footnote 26}  

Duration of unemployment^{Footnote 27}

Along with the decrease in the national unemployment rate in FY2122, 2 indicators measuring unemployment duration also exhibited a downward trend over the reporting period: average duration of unemployment and share of long-term unemployment (looking for work for 52 weeks or more). The average duration of unemployment (the number of continuous weeks of unemployment where an individual is looking for work or is on temporary layoff) at the early stage of the pandemic dropped noticeably due to a significant increase in recent unemployed individuals. This was followed by large growth in average duration of unemployment as the pandemic’s impact lingered (consult Chart 10). It was 22.3 weeks in March 2021, peaked at 25.6 weeks in October 2021 and then went down to 19.6 weeks in March 2022 with the gradual re-opening of nonessential businesses. However, this was still above the 16.7-week level recorded in February 2020. On an annual basis, the average duration of unemployment was 22.3 weeks for FY2122, up by 4.9 weeks from 17.4 weeks recorded in FY2021.

Accompanying the evolution of the average duration of unemployment, the proportion of unemployed Canadians who had been continuously searching for a job for a period of at least 52 consecutive weeks^{Footnote 28} (the share of long-term unemployment) rose dramatically in the second half of FY2021. In FY2122, it peaked in April 2021 at 18.9% of total unemployed (accounting for 313,100 long-term unemployed) and gradually trended down to 11.8% of total unemployed (representing 129,000 long-term unemployed) in March 2022. This share of long-term unemployment was still above its pre-pandemic level of 8.4% observed in February 2020. Among G7 countries, Canada reported the lowest proportion of unemployment lasting for one year or over in 2021.^{Footnote 29}

Text description chart 10

Month	Average weeks of unemployment spells (left scale)	Share of long-term unemployment (%) (right scale)
Mar-19	17.2	9.7
Apr-19	16.8	8.1
May-19	16.3	8.0
Jun-19	16.2	7.1
Jul-19	16.8	8.1
Aug-19	15.8	7.4
Sep-19	15.5	6.7
Oct-19	17	7.7
Nov-19	16.1	7.3
Dec-19	16.4	7.8
Jan-20	17.4	8.6
Feb-20	16.7	8.4
Mar-20	11.7	5.4
Apr-20	8.7	2.8
May-20	11.1	3.0
Jun-20	13	3.7
Jul-20	16.1	4.4
Aug-20	17	4.8
Sep-20	20.1	5.5
Oct-20	18.8	6.2
Nov-20	18.6	5.9
Dec-20	20.5	7.3
Jan-21	21	8.7
Feb-21	21.7	10.1
Mar-21	22.3	16.3
Apr-21	21.3	18.9
May-21	21.9	18.1
Jun-21	24.4	18.6
Jul-21	23.1	18.0
Aug-21	23	16.8
Sep-21	24.6	16.5
Oct-21	25.6	17.1
Nov-21	22	13.7
Dec-21	21.3	13.2
Jan-22	20.6	12.6
Feb-22	19.9	11.7
Mar-22	19.6	11.8

• Source: Statistics Canada, Labour Force Survey, Table 14-10-0342-01.

Individuals aged 55 years and over are generally more likely to have longer durations of unemployment. The COVID-19 period was no exception. In February 2020, the share of long-term unemployed was 14.5% among those aged 55 years and over, compared to 8.2% among those aged 25 to 54 years and 4.2% among youth. By the end of FY2122, it increased to 17.8%, 11.6% and 6.7% respectively for the 3 age groups. Similarly, relative to February 2020, in March 2022, the average duration of unemployment reached 26.2 weeks (+3.0 weeks) among workers aged 55 years and over, 20.9 weeks (+4.0 weeks) among those aged 25 to 54 years, and 12.5 weeks (+1.6 week) among youth.

In February 2020, the share of long-term unemployment was similar for men and women (8.9% and 7.8% respectively). By the end of FY2122, it reached 13.3% for men and 10.1% for women. Compared to February 2020, the average duration of unemployment increased by 3.6 weeks for men, reaching 20.9 weeks in March 2022, while it increased by 2.8 weeks for women, reaching 18.4 weeks.

Reasons for unemployment^{Footnote 30}

In general, workers can become unemployed for a number of reasons, and the cause of unemployment is a key factor in determining if the individual is eligible for EI benefits. EI regular benefits are only available to individuals who have lost their job for reasons outside their control or who left their job with just cause. As labour market conditions improved from the onset of the COVID-19 pandemic, reasons for unemployment continued to change during FY2122.

In the Labour Force Survey, 5 categories of reasons for unemployment are reported: job leavers, permanent layoff, temporary layoff, not worked last year and never worked. Among these, the permanent and temporary layoff are most relevant to the administration of the EI program.

Before May 2021, individuals who became unemployed because they lost their job (due to temporary or permanent layoffs) accounted for the largest share of the unemployed population in Canada. As many individuals lost their jobs at the beginning of the pandemic and remained unemployed through FY2021, unemployed individuals who did not work in the last year dominated the unemployment population starting May 2021 until January 2022 (consult Chart 11).

With public health restrictions easing and gradual re-opening of businesses, the share of temporary layoffs among the unemployed population decreased from 22.2% in FY2021 to 7.1% in FY2122, and the share of permanent layoffs decreased from 41.2% to 32.7% over the same period. The share of job leavers and unemployed individuals who have never worked stood at 12.6% and 11.2% in FY2122, similar to their levels in FY2021.

From an EI perspective, eligibility for regular benefits is largely based on the number of hours of insurable employment that an individual has accumulated in the previous 52 weeks (hours threshold for eligibility varies depending on the EI economic region where worker resides). The COVID-19 pandemic led to a higher proportion of unemployed individuals who did not work in the last year among the unemployed population (increased from 15.6% in FY2021 to 36.5% in FY2122). This, in conjunction with the different EI temporary measures put in place to facilitate access to EI benefits, would likely affect the indicators of access and coverage of the EI program in FY2122.

Text description chart 11

Month	Job leavers	Permanent layoff	Temporary layoff	Not worked last year	Never worked
Mar-19	20.8%	40.6%	5.0%	23.2%	10.5%
Apr-19	20.7%	40.9%	4.7%	22.6%	11.2%
May-19	25.4%	36.0%	3.5%	23.2%	11.9%
Jun-19	22.2%	35.5%	3.6%	24.7%	14.0%
Jul-19	20.2%	36.5%	5.4%	22.0%	15.9%
Aug-19	19.2%	41.4%	4.2%	21.2%	14.0%
Sep-19	24.6%	32.4%	2.9%	27.1%	12.9%
Oct-19	23.7%	33.0%	3.8%	26.2%	13.3%
Nov-19	22.3%	37.1%	3.9%	24.4%	12.4%
Dec-19	20.2%	39.7%	5.6%	24.4%	10.1%
Jan-20	19.1%	39.8%	7.1%	24.0%	10.0%
Feb-20	18.0%	40.9%	5.5%	25.6%	10.0%
Mar-20	11.7%	31.2%	36.1%	13.9%	7.1%
Apr-20	7.1%	27.8%	54.1%	7.3%	3.6%
May-20	11.1%	31.8%	42.3%	9.2%	5.7%
Jun-20	11.7%	39.3%	27.5%	12.1%	9.4%
Jul-20	13.6%	42.1%	17.7%	14.7%	12.1%
Aug-20	12.8%	48.4%	13.2%	13.7%	11.9%
Sep-20	14.2%	44.8%	10.2%	18.8%	12.0%
Oct-20	15.0%	45.3%	10.0%	19.9%	9.9%
Nov-20	13.1%	47.8%	8.7%	20.1%	10.3%
Dec-20	10.9%	46.7%	12.2%	19.8%	10.4%
Jan-21	9.7%	43.5%	19.6%	18.0%	9.2%
Feb-21	12.4%	43.3%	14.1%	21.4%	8.8%
Mar-21	11.7%	45.0%	9.6%	23.0%	10.6%
Apr-21	10.6%	30.8%	13.6%	33.5%	11.5%
May-21	10.5%	28.2%	12.0%	38.3%	11.0%
Jun-21	11.3%	28.0%	7.2%	41.5%	12.1%
Jul-21	10.4%	33.1%	5.3%	37.0%	14.2%
Aug-21	11.4%	36.5%	4.5%	37.0%	10.5%
Sep-21	12.8%	31.3%	3.6%	41.4%	10.9%
Oct-21	14.9%	29.4%	3.0%	42.4%	10.2%
Nov-21	15.2%	33.1%	2.9%	39.2%	9.6%
Dec-21	12.5%	35.2%	3.5%	38.0%	10.9%
Jan-22	13.2%	36.0%	14.5%	27.7%	8.5%
Feb-22	15.6%	35.9%	5.3%	31.0%	12.2%
Mar-22	15.7%	37.3%	4.7%	30.6%	11.7%

• Source: Statistics Canada, Labour Force Survey, Table 14-10-0125-01, seasonally unadjusted.

Hours of work^{Footnote 31}

“Hours of work” is closely related to the administration of the EI program. The number of hours of insurable employment is a key eligibility criterion of the EI program, as claimants must have worked a minimum number of insurable hours in the qualifying period to be eligible for EI benefits. It also determines, along with the regional unemployment rate, the maximum number of weeks of EI regular benefits a claimant is entitled to receive.

The average number of hours usually worked from all jobs by Canadians—hours usually worked in a typical week, not including any overtime—held constant at 36.4 per week in FY2122. It has been flat in recent years and below the FY0809 pre-recession level.

In contrast, the average actual hours worked often reflects temporary decreases or increases in work hours (for example, hours lost due to illness or vacation, or more hours worked due to overtime). At the onset of the COVID-19 pandemic, the average actual hours worked per worker from all jobs (including overtime) fell from 33.1 hours a week in February 2020 to 27.9 hours in April 2020 (consult chart 12). The average then rebounded in the following months and remained close to levels observed before the pandemic. Over the FY2122, the average actual hours worked from all jobs per week steadily followed a regular month-to-month fluctuation. In March 2022, the average actual hours worked from all jobs stood at 32.5 hours a week.

Text description chart 12

Month	Hours worked
Mar-19	32.6
Apr-19	30.5
May-19	34
Jun-19	34.6
Jul-19	32
Aug-19	31.6
Sep-19	34.3
Oct-19	31
Nov-19	32.4
Dec-19	33.9
Jan-20	33
Feb-20	33.1
Mar-20	28.8
Apr-20	27.9
May-20	30.6
Jun-20	32.1
Jul-20	30.8
Aug-20	30.4
Sep-20	33.2
Oct-20	31.1
Nov-20	32
Dec-20	33.3
Jan-21	32.9
Feb-21	31.6
Mar-21	33.5
Apr-21	33.1
May-21	34
Jun-21	33.8
Jul-21	31.7
Aug-21	31.3
Sep-21	33.8
Oct-21	32
Nov-21	32.4
Dec-21	33.7
Jan-22	32.3
Feb-22	33.3
Mar-22	32.5

• Source: Statistics Canada, Labour Force Survey, Table 14-10-0042-01, seasonally unadjusted.

Job vacancies^{Footnote 32} and labour market tightness

Over FY2122, both job vacancies and job vacancy rates reached record levels in Canada. This was potentially influenced by factors such as population aging, declines in immigration inflows during the COVID-19 pandemic, and structural changes of the labour market brought by economic lockdowns.

The number of job vacancies is the number of unoccupied positions for which employers are actively seeking workers. As the economy continued to recover, in the third quarter^{Footnote 33} of FY2122, the number of job vacancies went up by 63.4% compared to the same quarter of FY2021 (+80.0% compared to the third quarter of FY1920), hitting a historical high of 915,545 vacant positions (consult Chart 13). This increase was larger than the increase in employment. The same situation prevailed in the last quarter of FY2122, with job vacancies being 60.9% higher than a year earlier (+73.6% compared to two years earlier). Over this period, the job vacancy rate (number of job vacancies expressed as a percentage of all occupied and vacant jobs) hit historical high of 5.4% in the second quarter of FY2122. It remained high at 5.3% and 5.2% in the last two quarters of FY2122.

Text description chart 13

Quarter	Job vacancies, in thousands (left scale)	Job vacancy rate (right scale)
Q1FY1920	581.6	3.5%
Q2FY1920	562.9	3.3%
Q3FY1920	508.6	3.0%
Q4FY1920	512.8	3.1%
Q1FY2021	n.a.	n.a.
Q2FY2021	n.a.	n.a.
Q3FY2021	560.2	3.5%
Q4FY2021	553.5	3.6%
Q1FY2122	731.9	4.6%
Q2FY2122	912.6	5.4%
Q3FY2122	915.5	5.3%
Q4FY2122	890.4	5.2%

• ^* Statistics Canada temporarily suspended the data collection of the Job Vacancy and Wage Survey during the first and second quarters of FY2021.
• Source: Statistics Canada, Job Vacancy and Wage Survey, Table 14-10-0326-01, seasonally unadjusted.

An increase in the job vacancies has been observed in all industrial groups (consult Table 3). Among them, Management of companies and enterprises (+117.2%), Construction (+107.0%), and Accommodation and food services (+101.8%) had the highest increases, more than doubling in the last quarter of FY2122 compared to the same period two years ago.

• Source: Statistics Canada, Job Vacancy and Wage Survey, Table 14-10-0326-01, seasonally unadjusted.

The job vacancy rate saw the strongest growth in Accommodation and food services industry (+5.5 p.p.), hitting 9.9% in the last quarter of FY2122, the highest among all industries (consult Table 4). Construction (+3.1 p.p.), Manufacturing (+2.6 p.p.), Health care and social assistance (+2.5 p.p.), and Transportation and warehousing (+2.3 p.p.) were among the industries with faster growth in job vacancy rate in the last quarter of FY2122 relative to the same quarter in FY1920.

• Source: Statistics Canada, Job Vacancy and Wage Survey, Table 14-10-0326-01, seasonally unadjusted.

Job vacancies usually become more difficult to fill when the available labour force, primarily unemployed individuals, declines relative to the number of vacant positions. The labour market is tightening in this case. On the other hand, job vacancies should become easier to fill when the number of unemployed individuals increases relative to the number of vacant positions. In this case, the labour market is loosening. An indicator of labour market tightness is the Unemployment-to-Vacancy (UV) ratio. It measures the potential number of available unemployed people for every vacant position, providing a measure of labour market tightness. A lower UV ratio corresponds to a lower number of unemployed people relative to the total job vacancies, which indicates a tighter labour market. As fewer unemployed persons are available to fill the vacant positions, it could result in longer vacancy durations. A higher UV ratio corresponds to a higher number of unemployed people relative to the total job vacancies, which indicates a looser labour market. A comparison of the UV ratio at two points of time indicates how the labour market condition evolves over this period. Tightening condition is associated with a decrease in UV ratio and loosening condition is associated with an increase in UV ratio.

Public health measures put in place to contain the COVID-19 virus in FY2021 led to a loosening of the labour market during this period. The UV ratio increased by 0.7 points (to 3.5 in the fourth quarter of FY1920) at the beginning of the pandemic (consult Chart 14). It continued to climb in FY2021 and started to trend down in FY2122. By the fourth quarter of FY2122, it reached 2.0, lower than the pre-pandemic level indicating tightening labour market conditions.

Text description chart 14

Quarter	Unemployment-to-vacancy ratio
Q1FY1920	2.7
Q2FY1920	2.9
Q3FY1920	2.8
Q4FY1920	3.5
Q1FY2021	n.a.
Q2FY2021	n.a.
Q3FY2021	3.8
Q4FY2021	4.2
Q1FY2122	3.4
Q2FY2122	2.5
Q3FY2122	1.9
Q4FY2122	2.0

• ^* Statistics Canada temporarily suspended the data collection of the Job Vacancy and Wage Survey during the first and second quarters of FY2021.
• Sources: Statistics Canada, Job Vacancy and Wage Survey, Table 14-10-0326-01, seasonally unadjusted (for job vacancies) and Labour Force Survey, Table 14-10-0022-01 (for unemployment).

Over the same period, which is from the last quarter of FY1920 to the last quarter of FY2122, the UV ratio decreased in all industries due to lower unemployment and higher job vacancies (consult Chart 15).

Descriptive text chart 15

Industry	Q4FY2122	Q4FY1920
All industries	1.4	2.6
Public Administration	1.6	2.4
Other services (except public administration)	0.7	1.6
Accommodation and food services	0.7	2.0
Information, culture and recreation**	1.7	2.5
Health care and social assistance	0.4	0.8
Education	1.5	3.1
Business, building and other support services*	0.8	1.2
Professional, scientific and technical services	0.4	1.1
Finance insurance, real estate, rental and leasing	0.4	0.7
Transportation and warehousing	0.8	1.6
Wholesale and retail trades	0.8	1.9
Manufacturing	0.8	2.2
Construction	1.5	3.9
Utilities	0.9	1.4
Mining, quarrying, and oil and gas extraction	1.0	3.4
Agriculture, forestry, fishing and hunting	2.1	2.7

• Sources: Statistics Canada, Job Vacancy and Wage Survey, Table 14-10-0326-01, seasonally unadjusted (for job vacancies) and Labour Force Survey, Table 14-10-0022-01 (for unemployment).

Wages^{Footnote 34}

Employment earnings are another important element for the administration of the EI program. They determine the EI premiums paid by employers and employees, as well as the level of benefits that claimants can receive. Employment earnings can be a combination of hourly wages and hours worked, a fixed amount paid for a specific time period (a week, for example) or in the form of commissions, tips or bonuses. Average hourly wages and average weekly earnings are therefore examined.

Wage growth dynamics are linked to a variety of factors, notably labour productivity, labour market tightness, inflation expectations, demographic shifts, structural changes and minimum wage increases.

Average nominal hourly wages increased from $30.39 in FY2021 to $30.89 in FY2122, representing a +1.6% year-over-year change.^{Footnote 35} This increase was lower than the 6.2% increase observed between FY1920 and FY2021 (from $28.60 to $30.39) when employment in low-wage jobs was hit hard by the COVID-19 pandemic and decreased significantly (-20.5%). This shift was not present in FY2122.

Even without the impact of the COVID-19 pandemic, some evidence showed that average hourly wage was still trending upwards. A fixed-weighted average wage using LFS data produced by Statistics Canada maintains employment composition by occupation and tenure at the 2019 average. This indicator paints a picture of wage trends that are less influenced by structural shifts.^{Footnote 36} At the onset of the pandemic, it shows that there was a large discrepancy between the year-over-year change in average wages calculated with the actual wage measure and the fixed-weighted wage measure. This was due to the sudden reduction in the number of lower-wage jobs. In the following months, the difference between the actual and the fixed-weighted average wage narrowed. Up to November 2021, when the latest public data on the fixed-weighted average wage was released, the fixed-weighted nominal average hourly wage picked up an upward trend. This was probably partly led by the tightening labour market conditions during that period.

Based on the actual wage measure, though average nominal hourly wages gradually trended up, increases in CPI have been faster than the increase in average nominal hourly wages. During FY2122, the year-over-year growth rate of CPI ranged between +4.2% and +9.3%, faster than the year-over-year growth rate observed in average nominal hourly wage (ranged between -1.5% to +3.3%) (consult Chart 16). This indicates that wage gains workers had been seeing in the strong pre-pandemic labour market conditions have been partially eroded by inflation.

Text description chart 16

Month	Year-over-year change in average hourly wage	Year-over-year change in consumer price index (CPI)
Mar-19	2.1	2.5
Apr-19	2.2	2.7
May-19	2.3	3.2
Jun-19	3.1	2.7
Jul-19	3.2	2.7
Aug-19	3.1	2.6
Sep-19	3.3	2.5
Oct-19	3.1	2.5
Nov-19	2.9	2.9
Dec-19	2.6	3.0
Jan-20	2.8	3.2
Feb-20	3.3	2.9
Mar-20	6.2	1.2
Apr-20	10.5	-0.3
May-20	10.1	-0.5
Jun-20	7.2	0.9
Jul-20	6.5	0.2
Aug-20	6.3	0.2
Sep-20	5.0	0.7
Oct-20	5.6	0.9
Nov-20	5.1	1.3
Dec-20	5.4	1.0
Jan-21	6.3	1.4
Feb-21	5.3	1.5
Mar-21	1.9	3.0
Apr-21	-1.3	4.6
May-21	-1.5	4.9
Jun-21	-	4.2
Jul-21	1.2	5.1
Aug-21	1.9	5.6
Sep-21	2.7	6.0
Oct-21	2.0	6.4
Nov-21	2.7	6.5
Dec-21	3.3	6.6
Jan-22	2.7	7.1
Feb-22	2.7	7.9
Mar-22	3.2	9.3

• Sources: Statistics Canada, Consumer Price Index Measures, Table 18-10-0004-01 (for CPI) and Labour Force Survey, Table 14-10-0063-01 (for hourly wage).

Average nominal weekly earnings are influenced not only by the average nominal hourly wage, but also by the number of actual hours worked per week. As mentioned previously, average actual hours worked per week remained relatively stable over the reference period. As a result, average nominal weekly earnings followed the same patterns observed in the average nominal hourly wages. They trended up by 1.8% from $1,118 in FY2021 to $1,139 in FY2122, equivalent to $20 increase weekly.^{Footnote 37} In real terms, the average weekly earnings declined relative to the increase in the CPI.

Labour force and participation rate

In FY2122, each province and territory experienced an increase in its respective labour force compared to FY2021. Over the 2 fiscal periods, Prince Edward Island posted the highest growth in the size of its labour force (+5.3%), followed by Ontario (+3.7%), Nova Scotia (+3.4%) and Newfoundland and Labrador (+2.7%) (consult Table 5). By March 2022, all the provinces and territories, except Saskatchewan, had resumed their pre-pandemic labour force sizes recorded in February 2020.

In FY2122, participation rates in all provinces and territories were higher than those observed in FY2021. Prince Edward Island, Ontario, Manitoba, Saskatchewan and Alberta were at or above the national level during the reporting period (consult Table 5). Alberta registered the highest participation rate (69.7%) in FY2122. Compared to their pre-pandemic rates (February 2020), only Newfoundland and Labrador and Ontario saw full recoveries of their participation rates by March 2022.

• ^* Figures for Canada’s labour force and participation rate exclude the territories. Percentage change is based on unrounded numbers.
• Sources: Statistics Canada; Labour Force Survey, Table 14-10-0287-01 and 14-10-0292-01.

Employment and employment rate

Each province and territory experienced growth in employment in FY2122 compared to FY2021. The greatest employment gains were recorded in Ontario (+7.3%), Alberta (+7.2%) and British Columbia (+6.6%) (consult Table 6). Nunavut and Northwest Territories also posted strong increases during the same period (+14.8% and +8.6%, respectively). By March 2022, employment in each province and territory (except for Nunavut) had fully recovered, and often exceeded, their pre-pandemic levels recorded in February 2020.

The employment rate increased between 1.3 p.p. to 3.7 p.p. in each province in FY2122 compared to FY2021. In FY2122, employment rates in Alberta, Saskatchewan, Manitoba, and British Columbia were higher than the national level (consult Table 6). By March 2022, employment rates in Newfoundland and Labrador, Ontario, and Northwest Territories had recovered to their pre-pandemic rates recorded in February 2020.

• ^* Figures for Canada’s employment and employment rate exclude the territories. Percentage change is based on unrounded numbers.
• Sources: Statistics Canada; Labour Force Survey, Table 14-10-0287-01 and 14-10-0292-01, seasonally adjusted data.

Unemployment and unemployment rate

All provinces and territories noticed a significant decrease in unemployment in FY2122 compared to the previous fiscal period (consult Table 7). Quebec (-39.9%), British Columbia (-35.7%) and Alberta (‑34.4%) registered the largest drops. Northwest Territories also registered a 37.6% drop, followed by Nunavut (‑13.4%) and Yukon (-7.6%) compared to FY2021. Despite these declines, by March 2022, 9 out of 13 provinces and territories had levels of unemployment that were higher than pre-pandemic ones recorded in February 2020.

In FY2122, all provinces and territories experienced a drop in their unemployment rates compared to FY2021, resulting from lower unemployment and a growing labour force. In FY2122, Quebec (5.5%), Manitoba (5.7%), British Columbia (5.9%) and Saskatchewan (6.0%) saw unemployment rates below the national level (6.8%) (consult Table 7). Yukon (5.5%) and Northwest Territories (5.7%) also reported lower unemployment rates in FY2122. Though the national monthly unemployment rate recorded a historical low, only 2 provinces (Nova Scotia and Quebec) saw historical low marks during FY2122. By March 2022, only Newfoundland and Labrador, Prince Edward Island, Yukon and Nunavut had unemployment rates above their pre-pandemic levels recorded in February 2020. All other provinces and territories had dropped to lower levels compared to their pre-pandemic situation.

• ^* Figures for Canada’s unemployment and unemployment rate exclude the territories. Percentage change is based on unrounded numbers.
• Sources: Statistics Canada; Labour Force Survey, Table 14-10-0287-01 and 14-10-0292-01.

Duration of unemployment

In FY2122, all provinces saw their average duration of unemployment increase for a second consecutive fiscal year. This followed a decrease recorded at the end of FY1920 due to the sudden rise in the number of recent unemployed individuals at the start of the COVID-19 pandemic. However, on a monthly basis, this indicator showed an upward trend at the beginning of FY2122, but started to drop significantly later in FY2122.

Each province’s unemployment duration was impacted differently by the COVID-19 pandemic. By March 2022, only 3 provinces (New Brunswick, Saskatchewan and Quebec) had lower average durations of unemployment compared to pre-pandemic levels recorded in February 2020. Most noticeably, the average duration was higher by 35.6% in Ontario, 33.8% in British Columbia and 27.0% in Manitoba in March 2022 compared to February 2020 (consult Table 8).

• ^* Excludes the territories. Percentage change is based on unrounded numbers.
• Sources: Statistics Canada; Labour Force Survey, Table 14-10-0342-01.

Weekly hours and earnings

As the labour market conditions gradually improved, the average weekly hours actually worked in FY2122 in all provinces increased from the previous fiscal year. Newfoundland and Labrador, Alberta, British Columbia and Quebec saw higher growth than the national average (consult Table 9).

Similarly, weekly earnings increased in FY2122 in all provinces and territories except Prince Edward Island (remained unchanged), compared to FY2021. However, the CPI also increased during the same period. In all provinces and territories, the increase in nominal weekly earnings was lower than the increase in CPI, indicating a decrease in the average purchasing power of workers in FY2122 (consult Table 9).

• ^* Weekly hours worked reflect the number of hours actually worked in the reference week of the Labour Force Survey from all jobs, including overtime.
• ^** Earnings data are based on gross payroll before source deductions; this includes earnings for overtime.
• ^*** Excludes the territories. Percentage change is based on unrounded numbers.
• Sources: Statistics Canada, Labour Force Survey, Table 14-10-0042-01, unadjusted for seasonally (for hours worked), Survey of Employment, Payrolls and Hours, Table 14-10-0203-01, unadjusted for seasonality (for nominal weekly earnings) and Consumer Price Index Measures, Table 18-10-0004-01, unadjusted for seasonality (for CPI).

Job vacancy and labour market tightness

In the last 2 quarters of FY2122, as the economy continued to recover from the pandemic, the number of job vacancies was up in all provinces and in 2 out of 3 territories (except for Nunavut), compared to the same quarters in FY2021 (consult Table 10). The largest increases were recorded in Prince Edward Island (+84.4%), Alberta (+83.1%), Saskatchewan (+77.2%), and Ontario (+68.5). The smallest increase was observed in New Brunswick (+26.7%).

In addition to an increase in job vacancies, the job vacancy rate also increased in all the provinces and 2 out of 3 territories (except for Nunavut) in FY2122. Among the provinces, British Columbia and Quebec posted job vacancy rates (6.1% and 5.8%, respectively) that were higher than the national level (5.1%). These 2 provinces were also among those with the lowest unemployment rates (5.9% and 5.5%, respectively), indicating that they had the tightest labour market conditions across Canada over FY2122 (consult Tables 7 and 10). This was echoed by the low UV ratios (1.2 and 1.1, respectively) they registered in the reporting period. Ontario recorded a job vacancy rate (5.0%) and a UV ratio (1.9) close to the national average (5.1% and 1.6, respectively), and an unemployment rate slightly higher than the national level (7.4% versus 6.8%) in FY2122. This suggests that Ontario’s labour market tightness was less pronounced than the national average in FY2122. Compared to the national level, Manitoba and Saskatchewan reported slightly lower unemployment rates, slightly lower job vacancy rates and slightly higher UV ratios. This indicates that labour supply in these 2 provinces was broadly in line with labour demand, and labour market pressures were similar or slightly below national average. However, the least tight labour market conditions were observed in Newfoundland and Labrador. This province had the highest unemployment rate and the lowest job vacancy rate in the country, resulting in an UV ratio of 4.8, highest across all provinces and territories. Alberta, New Brunswick, Prince Edward Island and Nova Scotia also underperformed the national average in terms of both unemployment and job vacancy rates. With UV ratios ranging from 2.3 to 2.7, these 4 provinces demonstrated a larger amount of slack in their respective labour markets in comparison with most other provinces.

• Sources: Statistics Canada, Job Vacancy and Wage Survey, Table 14-10-0326-01, unadjusted for seasonality (for job vacancies) and Labour Force Survey, Table 14-10-0287-01, unadjusted for seasonality (for unemployment).

The relative intensity of labour market tightness across provinces remained similar to what it was prior to the pandemic, as shown in Chart 17. This suggests that regional disparities in terms of economic conditions, industrial structure and demographic trends have persisted.

Text description chart 17

Region	Q4FY2122	Q4FY1920
Canada	1.4	2.7
British Columbia	1.2	1.8
Alberta	2.0	4.2
Saskatchewan	1.6	3.6
Manitoba	1.2	2.3
Ontario	1.5	2.7
Quebec	1.0	2.3
New Brunswick	2.5	4.0
Nova Scotia	2.0	4.5
Prince Edward Island	3.4	5.2
Newfoundland and Labrador	6.1	7.9

• Sources: Statistics Canada, Job Vacancy and Wage Survey, Table 14-10-0326-01, seasonally unadjusted (for job vacancies) and Labour Force Survey, Table 14-10-0287-01 (for unemployment).

Interprovincial mobility trends

Each year, a substantial number of people in Canada relocate across provincial and territorial borders due to job opportunities, education, school, or family reasons. Interprovincial mobility gives workers the possibility to access labour markets in other jurisdictions. It also gives them the opportunity to find a job that may be better suited for their particular skillset. Between July 1, 2021 and June 30, 2022, an estimated 272,000 individuals relocated within Canada. From a national perspective, interprovincial mobility can increase real GDP and aggregate labour productivity growth. It can also improve individual outcomes in terms of finding suitable employment. This occurs when workers from provinces with higher unemployment and an excess labour supply move to provinces with lower unemployment and labour shortages.

The regions with the highest net migration^{Footnote 39} from July 2021 to June 2022 were the Atlantic provinces (Newfoundland and Labrador, Prince Edward Island, Nova Scotia, and New Brunswick) (+1.5%), Alberta (+0.5%) and British Columbia (+0.4%) (consult Chart 18). Conversely, negative mobility trends continued in the resource and agriculture dependent provinces of Manitoba (‑0.8%) and Saskatchewan (‑0.7%). Ontario continued its downward trends in net migration for the second consecutive fiscal year (‑0.4%).

Most of these trends were a continuation of those observed in July 2019 to June 2021. In particular, large number of people relocated to the Atlantic region from Ontario, in part related to an increased ability of teleworking during the pandemic, and to a faster increase in housing prices observed in Ontario than the Atlantic provinces.^{Footnote 40} For Alberta, the historical gain of residents from other provinces had reversed in FY1415, with the downturn in crude oil prices and less favourable labour market conditions. However, due to teleworking practices and relatively more affordable housing prices, Alberta saw a net gain from July 2021 to June 2022.

Text description chart 18

Regions	2005-2015	2015-2021	2021-2022
Atlantic provinces	-0.3%	0.2%	1.5%
Quebec	-0.1%	-0.1%	0.0%
Ontario	-0.1%	0.0%	-0.4%
Manitoba	-0.5%	-0.5%	-0.8%
Saskatchewan	0.0%	-0.7%	-0.7%
Alberta	0.8%	-0.2%	0.5%
British Columbia	0.2%	0.5%	0.4%

• Note: Annual is defined as the period from July 1 to June 30.
• ^P Preliminary data for July 1, 2021 to June 30, 2022.
• Source: Statistics Canada, Table 17-10-0015-01 (for interprovincial migration) and 17-10-0005-01 (for population estimates).