Canada loses 213,000 jobs, unemployment rate jumps to 9.4%

A new round of restrictions over the last couple of months in some regions has triggered fresh lay-offs that have stalled the recovery.

Employment in Canada fell more than expected in January as a fresh wave of lockdowns weighs on the nation’s economy.

FILE PHOTO: Canada's Prime Minister Justin Trudeau attends a news conference at Rideau Cottage, as efforts continue to help slow the spread of the coronavirus disease (COVID-19), in Ottawa, Ontario, Canada January 19, 2021. REUTERS/Blair Gable/File Photo (REUTERS)

The country lost 212,800 positions in the month, Statistics Canada said Friday in Ottawa. Economists in a Bloomberg survey had predicted a drop of 40,000. That’s on top of 52,700 jobs lost in December.

The unemployment rate jumped to 9.4%, versus 8.8% previously and a forecast of 8.9%.

A new round of restrictions over the last couple of months in some regions -- including stay-at-home orders and curfews -- have triggered fresh lay-offs that have stalled the recovery.

Friday’s report wipes out months of gains, leaving employment about 4.5% shy of February’s levels.

Still, Canada’s labor market is faring better now than it did during the first wave of restrictions in March and April, when employment fell by 3 million.

Hours worked increased 0.9% on the month in January. Losses were entirely in part-time positions, with full-time jobs increasing.