Canada’s economy recovers 94,000 jobs in July

Shelby Thevenot
Published: August 7, 2021

Canada's economy was a little closer to pre-pandemic levels last month.

Statistics Canada's Labour Force Survey for July examined Canada's labour market conditions during the week of July 11 to 17. During this week, public health restrictions across Canada were significantly reduced due to low case counts and high rates of vaccination.

Discover if You’re Eligible for Canadian Immigration

Canada added 94,000 jobs in July, putting employment 1.3 per cent under February 2020 levels. Gains were concentrated in full-time work, especially in the private sector in service industries. Unemployment fell to 7.5 per cent, matching the rate in March.

Employment increased in the provinces of Ontario, Manitoba, Nova Scotia and Prince Edward Island.

Employment rate for very recent immigrants continues to climb

Statistics Canada refers to immigrants who have landed within the past five years as "very recent" immigrants. The numbers in this group have taken a hit since the border closed in March 2020.

The employment rate for very recent immigrants has been on an upward trend throughout the pandemic, because their numbers are falling faster than their employment rate. In other words, they are not necessarily getting employed more often than they were in pre-pandemic times.

In July, the employment rate for very recent immigrants was up to 69.1 per cent, up one percentage point from June.

Among immigrants who have been in Canada for more than five years, employment was 58.1 per cent in July, down a fraction of a percentage point compared to June.

The number of very recent immigrants who were participating in the labour force ballooned from more than 612,000 in 2016 to 751,000 in 2019. Growth stalled in 2020 as a result of travel restrictions, and other coronavirus-related measures.

Number of very recent immigrants in Canada's labour force 
Chart 8: Number of very recent immigrants in Canada's labour force stalls during COVID

Source: Statistics Canada

However, this year, the number of very recent immigrants participating in the labour force has returned to 2019 levels, making up almost 4 per cent of the total labour force between January and July.

Immigration in Canada is oftentimes discussed as a strategy to address Canada's demographic challenges. Canada has an aging population, and a low birthrate. These elements combined mean that the labour force is shrinking, and there is not enough natural growth to make up for the losses. Without immigration, and other strategies to support labour market gaps, Canada's economy will not remain as internationally competitive in the long run.

Travel restrictions did start to ease at the end of June, when the border reopened to approved permanent residents. That month, Canada welcomed 35,700 new permanent residents, more than any month during the pandemic. The number of new immigrants admitted in July is not yet released.

As travel restrictions ease further, Statistics Canada says its Labour Force Survey will monitor whether the number of new immigrants participating in Canada's labour market will continue to grow.

Discover if You’re Eligible for Canadian Immigration

© CIC News All Rights Reserved. Visit CanadaVisa.com to discover your Canadian immigration options.

Share this article
Share your voice
Did you find this article helpful?
Thank you for your feedback.
Subscribe to our newsletter
Did you find this article helpful?
Please provide a response
Thank you for your helpful feedback
Please contact us if you would like to share additional feedback, have a question, or would like Canadian immigration assistance.
  • Do you need Canadian immigration assistance? Contact the Contact Cohen Immigration Law firm by completing our form
  • Send us your feedback or your non-legal assistance questions by emailing us at media@canadavisa.com
Related articles
IRCC announces eligible programs for PGWPs
A group of graduates in ceremonial dress, at their convocation speech.
New Brunswick Critical Worker Pilot: Who are the employers and what positions do they hire for?
A picture of a lighthouse on the New Brunswick coast during a sunset.
How to choose the right NOC for your profession
Two colleages talking in an office building in Canada.
Destination Canada holds virtual job fair for bilingual candidates
A person siting in the living room, preparing for a virtual interview online.
Top Stories
Ontario, British Columbia, and Manitoba invite candidates to apply for provincial nomination
IRCC announces eligible programs for PGWPs
Quebec imposes country cap for Regular Skilled Worker Program
Join our free newsletter. Get Canada's top immigration stories delivered to your inbox.
Subscribe
More in Provinces
Ontario, British Columbia, and Manitoba invite candidates to apply for provincial nomination
A scenic landscape with trees and water
Quebec imposes country cap for Regular Skilled Worker Program
Historic Quebec City
New Brunswick Critical Worker Pilot: Who are the employers and what positions do they hire for?
A picture of a lighthouse on the New Brunswick coast during a sunset.
British Columbia and Manitoba hold immigration draws; Alberta provides processing updates
A bird's eye view of the British Columbia coastline on a summer afternoon
Link copied to clipboard