The country’s economy shed a worse-than-expected 20,000 jobs in April as the effects of lower oil prices rippled out beyond resource-related jobs while positions in the retail sector were eliminated amid a wave of store closures from departing retailer Target.
Statistics Canada said Friday construction jobs declined last month as builders pulled back on residential building, notably on condos. The loss of 28,400 jobs was the second month in a row of declines for the industry.
More than 14,000 jobs vanished from the retail sector in April, as well, as Target Canada shut down roughly half of its 133 locations across the country. Target’s shut down was the biggest among several closures from retailers (such as Future Shop).
The hit delivered to retail jobs was widely expected. Less so was the knock to construction.
“The April labour report was disappointing … it showed the anticipated hit to retail payrolls was accompanied by a second monthly drop in construction employment,” RBC economist Dawn Desjardins said.
Led by the drop in retail jobs, the unemployment rate was expected to rise a tick to 6.9 per cent. Instead, the unemployment rate held steady at 6.8 per cent as fewer people looked for work in the month.
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Experts pointed out some positives in the report. Although the net decrease in jobs was worst than expected, losses were concentrated in part-time work — likely a reflection of the drop in retail positions. Part-time work declined by 66,500 jobs, while full-time positions actually climbed by 46,900.
“The details showing strong full-time gains over part-time losses was somewhat reassuring,” David Madani at Capital Economics said.
The resource sector actually held up reasonably well in April as well, given persistently low oil prices. The sector as a whole, which includes mining and energy related jobs, scaled back by less than 1,000 positions.
Surprisingly, as the epicentre of Canada’s energy sector, Alberta, actually posted a net gain in jobs in April. “Alberta continues to turn out jobs despite the sharp plunge in oil prices,” Diana Petramala, an economist at TD Economics said.
Nationally, economists were calling for a decline of between 5,000 and 15,000 jobs in April.
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