Canada loses more jobs in May but summer hiring boom looms

Canada lost more jobs than expected in May amid continued lockdowns to curb a harsh third wave of Covid-19, data showed on Friday, but economists were quick to predict a rush of hiring in June as those restrictions ease. 

Some 68,000 jobs were lost in May, Statistics Canada said, more than the average analyst forecast for a loss of 20,000. The unemployment rate climbed to 8.2 per cent, in line with expectations. Employment is now 3 per cent below pre-pandemic levels, Statscan said. "I am hopeful that this is the last down-print we have before we release a fury of hiring activity starting in June," said Derek Holt, vice president of Capital Market Economics at Scotiabank.

Many Canadian provinces are easing restrictions as new Covid-19 infections plummet and more Canadians get their jab. Canada has administered first doses to about 60 per cent of its adult population, with just over 6 per cent fully vaccinated.

That should bolster the reopening of "high-contact" service sectors, where employment remains furthest below pre-pandemic levels, with hiring set to ramp up in subsequent months as businesses respond to a surge of pent-up demand.

"With households sitting on an exceptionally large stockpile of savings built up during the pandemic, that recovery could accelerate relatively quickly over the summer," said Nathan Janzen, senior economist at RBC, in a note.