Every Friday, we publish a weekly update on COVID-19 and its effect on business.
Unemployment Declines in August as 246,000 Canadian Jobs Added
Canada’s employment gains over August were predominantly classified as a rise in full-time work, which had been lagging the resurgence of part-time employment.
Using data from StatsCan, here is a breakdown of Canada’s August employment (numbers from July are indicated within brackets):
Unemployment rate: 10.2 percent (10.9)
Employment rate: 58.0 percent (57.3)
Participation rate: 64.6 percent (64.3)
Number unemployed: 2,046,900 (2,183,600)
Number working: 18,091,700 (17,845,900)
Youth (15-24 years) unemployment rate: 23.1 percent (24.2)
Men (25 plus) unemployment rate: 8.4 percent (8.9)
Women (25 plus) unemployment rate: 7.7 percent (8.6)
While the dip in unemployment is a promising indication for the future, Refinitiv – a global provider of financial market data and infrastructure – was expecting a slightly higher gain of 275,000 jobs in August and an unemployment rate of 10.1 percent.
COVID-19 Exposure App Now Available in Newfoundland and Labrador
The COVID Alert app is continuing its rollout throughout Canada, recently becoming available to people in the Newfoundland and Labrador regions. Per the Government of Canada’s website:
People in Newfoundland and Labrador can now receive one-time keys from their health authorities to use with COVID Alert, Canada’s COVID-19 exposure notification app. The app, first fully implemented in Ontario in July, helps notify users if they may have been exposed to someone who has tested positive for COVID-19.
The COVID Alert app is free and voluntary and is another tool to help limit the spread of COVID-19. Users who test positive for COVID-19 will receive a one-time-key from their health authority that they can enter into the app. When the key is entered, COVID Alert will notify other users who may have come in close contact with that person for at least 15 minutes, and direct them on the next steps based on their provincial public health advice.
To safeguard the confidentiality and privacy of all Canadians, the app uses strong measures to protect any data it collects and does not track a user’s location or collect personally identifiable information. The Privacy Commissioner of Canada was consulted on the development of COVID Alert and supports its use by Canadians.
COVID Alert is available for download to all Canadians, and the Government of Canada continues to work with the other provinces and territories to bring their health authorities on board in the coming weeks and months.
Andersen Monthly Economic Report – August 2020
TEC Canada is pleased to provide the Andersen Monthly Economic Report exclusively to our members. The former assistant chief of the Bank of Canada’s research department, Dr. Peter Andersen provides valuable economic insight to help you make better business decisions. Highlights from the August Andersen Monthly Economic Report include:
Capital spending intentions have collapsed in Canada with only a few sectors showing promise. In the U.S., the third-quarter economic rebound provides welcome relief for stability for the next 90 days, though determining its cause is difficult. Despite the persistence of the virus globally, world trade is recovering. Canada may be in the process of heading towards a guaranteed minimum income; and the U.S. could be pressured to move in this direction as well.
- Capital spending plans in Canada have crashed; Alberta and Newfoundland show the largest percentage declines in investment intentions compared to 2019
- Outside of manufacturing a few sections show an increase in intentions (waste management, health care, information/telecommunications, public administration and transportation/warehousing)
- The housing industry is booming and homebuilders have never been more confident. New homes can be sold in a virtual world and housing is in a V-shaped recovery
- Sales are running higher than expected and are up 2.7% from July of last year
- Media claims of widespread virus resurgence is misleading – 7-day moving average of new cases is now down by 32%
- Evidence shows that we will be facing shortages of a wide range of materials and commodities
- The economic rebound is now straining supply, for example in lumber
Members can read the full August 2020 Andersen Monthly Economic Report here.
While the coronavirus continues to spread quickly, it is important to remember that only a small percentage of patients need special treatment to recover. Trusted health experts continue to emphasize that the general population shouldn’t panic and should instead focus on practicing proper hygiene, such as hand-washing and refraining from touching the facial area.
View our full library of COVID-19 resources here.