London-St. Thomas jobless rate records 3rd consecutive drop, falls to 8.9 per cent in September

The London-St. Thomas unemployment rate fell to 8.9 per cent in September, marking the third straight month of declining unemployment in the region.

According to a release from the City of London, local employment levels for the month are actually ahead of numbers from September 2019, well before the start of the novel coronavirus pandemic.

The city says 255,000 people were employed last month, compared to 249,300 at the same time a year ago. London and Barrie are the only mid- to large-sized Ontario cities with more people employed in September 2020 than in September 2019, according to the city.

Data from Statistics Canada released Friday morning shows 4,200 jobs were added in September, a sizable increase but not as large as the 6,900 jobs added in August.

The labour force increased by 3,300 people while 900 fewer people claimed unemployment.

The London-St. Thomas participation rate, which measures the proportion of the working-age population that is working or looking for work, climbed to 61.5 per cent in September from 60.8 per cent in August.

The participation rate has long been a focus for the region. London-St. Thomas has had one of the lowest participation rates in Canada, at one point last year second only to Saguenay, Que.

The novel coronavirus was declared a pandemic by the World Health Organization on March 11 and the local jobless rate shot up to 8.9 per cent in April from 5.8 per cent in March.

As the economic repercussions of the pandemic became more apparent, the jobless rate continued to climb to 11.7 per cent in May and peaked at 12.6 per cent in June before it fell to 10.5 per cent in July and 9.3 per cent in August.

While the London region has made significant gains in employment, the city says the local economy is still 7,700 jobs “behind its pre-shutdown total of 262,700.”

“We’re pleased with our progress thus far, but by no means are we satisfied,” said Mayor Ed Holder.

“We know employers and those looking for work continue to face tremendous pressures, especially in the weeks and months ahead. We are absolutely committed to doing all we can to ensure London’s economic recovery leaves no one behind.”

Nationally, Canada added 378,000 net new jobs in September. The gain, which was far stronger than the 156,600 new jobs economists expected, brings employment to within 720,000 of its level in February, before the novel coronavirus pandemic took hold in Canada.

The unemployment rate dropped for the fourth consecutive month, declining 1.2 percentage points to nine per cent.

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— with files from Global News’ Erica Alini.