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Employment down and unemployment rate up in March 2020

Montréal, April 9, 2020. –  Employment in Québec fell by 264,000 (-6.0%) in March 2020 from February 2020. The unemployment rate increased by 3.6 percentage points in March to 8.1%. These are the main highlights of the employment and labour force data based on the results of Statistics Canada’s Labour Force Survey released today.

Full-time employment fell by 91,600 and part-time employment by 172,400. Employment declined in the private sector (-192,600), the public sector (-68,200) and among the self-employed (-3,300). The participation rate fell 1.6 percentage points to 63.1%, while the employment rate fell 3.8 percentage points to 58.0% in March.

In Canada, employment fell by 1,010,700 (-5.3%) in March. The unemployment rate rose 2.2 percentage points to 7.8%. Ontario (-402,800), Québec (-264,000), British Columbia (-132,400) and Alberta (-117,100) posted the largest employment drops.

In the first three months of 2020, compared with the same period of 2019, employment in Québec declined by 20,500. During this period, full-time employment increased by 44,900, while part-time employment decreased by 65,400. Since the beginning of 2020, the unemployment rate in Québec has averaged 5.9% (Canada: 6.3%).

Word of caution regarding the effects of COVID-19 on EPA data


In March, the labour market effects of the COVID-19 outbreak should be interpreted with caution when analyzing the results of the Labour Force Survey (LFS).


Since the survey reference period for March extends from March 15 to 21, the effects of certain actions taken by the Québec government on employment and unemployment during this period were potentially measured by the survey.


However, the effects of the suspension of non-essential activities announced on March 23 (after the LFS reference week) are not measured by the survey.


In addition, some support measures announced by the federal government (Canada Emergency Response Benefit, wage subsidies for businesses), although retroactive to March 15, were not yet in place at the time of data collection. Thus, the accurate categorization of an individual’s labour-force status according to the usual definitions of employment, unemployment1 and inactivity may have been more difficult in this edition of the survey.


Finally, the earlier implementation of measures in some provinces may affect interprovincial comparisons.


As a result, a longer period of analysis will be required to assess the trend effects of COVID-19 on the Québec labour market. It should also be noted that the monthly data are based on a sample and are therefore subject to a certain amount of variability. Statistics Canada’s The Daily provides detailed analyses of the impact of COVID-19 on the labour market in March 2020.


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1. The Labour Force Survey defines unemployed persons as those who, during the reference week : 1- were on temporary layoff with an expectation of recall and were available for work; or 2- were without work, had looked for work in the past four weeks, and were available for work; or 3- had a new job to start within four weeks, and were available for work.



Changes in employment and trend-cycle data, Québec, March 2019 to March 2020


Graph: Changes in employment and trend-cycle data, Québec, March 2019 to March 2020

Note: Trend-cycle data are a smoothed version of seasonally adjusted data where the effects of irregular movements have been reduced. They are helpful in analyzing long-term changes in the data. For more information: Statistics Canada, Trend-cycle estimates – Frequently asked questions.

Source: Statistics Canada, Labour Force Survey, 2020. Adapted by the Institut de la statistique du Québec.

 

Changes in the unemployment rate, Québec, March 2019 to March 2020


Graph: Changes in the unemployment rate, Québec, March 2019 to March 2020

Source: Statistics Canada, Labour Force Survey, 2020. Adapted by the Institut de la statistique du Québec.

 

 


The Institut de la statistique du Québec produces, analyzes and disseminates official, objective and quality statistical information on various aspects of Québec society. It is responsible for conducting all statistical surveys of general interest. The relevance of its work makes it a strategic ally for decision makers and all those wishing to learn more about Québec.

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