Thank you, Mr. Chair.
Thank you, members of the committee. Thank you for inviting Statistics Canada to speak today as part of the study on employment insurance.
Statistics Canada has many data sources, such as the Labour Force Survey, or LFS, and employment insurance, or EI, statistics, that are used to paint a more complete portrait of labour market-related events. Many of the indicators I will cite today are drawn from these sources. Each data source has its benefits and drawbacks, for example, in terms of coverage, sample size and how quickly data are published.
The pandemic has caused unprecedented job losses in Canada. Total employment fell by more than three million during the worst of the crisis in March and April. Within three months, the unemployment rate almost tripled, reaching 13.7% in May. Although the labour market has improved since then, most labour market indicators have not yet returned to pre-pandemic levels. Their recovery has been slowed by the public health measures in place.
In January 2021, the unemployment rate stood at 9.4%, compared with 5.7% in February 2020. The number of long-term unemployed workers, in other words, people who have been looking for work or on temporary layoff for 27 weeks or more, remained at a record high of 512,000.
New experimental data show that COVID-19 has significantly impacted groups designated as visible minorities. In January, the unemployment rate of Black Canadians was 5.3 percentage points higher than a year earlier, versus an increase of 3.7 percentage points for Canadians who did not identify as indigenous or did not belong to a group designated as a visible minority. This more precarious labour market situation for population groups designated as visible minorities is partly due to the higher concentration of these workers in some of the sectors most affected by the COVID-19 economic crisis, such as accommodation and food services.
Looking at age groups, youth employment in January 2021 was the furthest, -14%, from the pre-pandemic levels of February 2020, when compared with other demographic groups, particularly employment among young women, -17%.
Last December, 1.3 million Canadians were receiving regular EI benefits, almost triple the number from February 2020, which was 446,000.
The results of the LFS show that 1.8 million people were unemployed in December, including 1.5 million who were looking for work and 300,000 who had a connection to a job, either because they had been laid off temporarily or because they had arrangements to start a new job in the near future.
There is always a proportion of unemployed who are not eligible for EI benefits. Some unemployed people have not contributed to the program because they have not worked in the past 12 months or because their job was not insured. Others contributed to the program, but they do not meet the eligibility criteria.
In December, 13% of all regular EI beneficiaries were eligible as a result of temporary changes made to the eligibility rules in September 2020. This proportion was higher in Quebec and in the Atlantic provinces than in the other provinces.
The December LFS results revealed that the industries where employment remained furthest from pre-pandemic levels included accommodation and food services, information, culture and recreation, and what is known as other services, including personal services and laundry services. The challenges facing these industries are reflected in the profile of regular EI beneficiaries. For example, in December, more than one in four regular EI beneficiaries had last worked in one of these three sectors.
The uneven impact of COVID-19 across industries, combined with relaxation of the rules for accessing the EI program, has also driven the proportion of women who receive regular benefits upward, which rose from 37% in February to 48% in December.
My colleague Vincent and I would be happy to answer any of your questions.
This concludes my presentation, Mr. Chair. I hope this overview of the Canadian labour market will be useful to the committee.