P.E.I.’s economy shed 9,200 jobs in April, and a total of 11,300 since February, according to new jobs figures from Statistics Canada.
This sounds bad. But UPEI economist Jim Sentance said there is perhaps a silver lining for P.E.I.: the province now has the lowest unemployment rate in the country.
"That's never happened before. Not even close," Sentance said.
"This is just bizarro world."
Typically, P.E.I. has an unemployment rate higher than provinces like Ontario and B.C.
P.E.I.’s economy took a much bigger hit due to the coronavirus pandemic in April than it did in March, losing 9,200 jobs last month compared to 2,100 the month before.
The latest Labour Force survey from Statistics Canada shows the Province’s unemployment rate has grown from 8 per cent in February to 10.8 per cent in April.
Sentance says the comparatively lower proportion of job losses may be due to larger sectors, including construction and manufacturing, which have performed relatively well.
But Sentance the economic downturn has had a much bigger impact on women than men.
"You look at P.E.I. and the difference is fairly substantial."
"Going back to February, the unemployment rate for women has nearly doubled. In fact it's double what the average January-February unemployment rate was."
Unemployment rate in P.E.I.
- January: 7.5 per cent
- February: 8 per cent
- March: 8.6 per cent
- April: 10.8 per cent
The sectors hardest most hit by job losses, such as retail, food service and hospitality, are far more feminized than sectors like construction and manufacturing, whose workforce is traditionally more male.
There has been a higher proportion of job losses for part-time employees as well on the Island. There are 26 per cent fewer part-time jobs in the province compared to April of 2019. There are 8.2 per cent fewer full-time jobs in the Province compared to this time last year.
An economic update released in early April forecast 17,500 fewer jobs on P.E.I. by the end of April than previously expected. The biggest losses were predicted to occur in the retail, construction, accommodation and food services sectors.
It remains to be seen whether the unemployment rate will fall as the Island begins to loosen public health restrictions. The tourism sector is at a standstill and there has been no indication whether travel will be even allowed from New Brunswick this summer, let alone other parts of Canada or North America.
The government’s Renew Together plan for loosening restrictions contains no dates and few details for its fourth phase, in which larger public gatherings begin to be allowed and travel restrictions will be eased.
Nationally, the Canadian economy shed close to 2 million jobs in April, on top of the 1 million jobs lost in March.
“The magnitude of the decline in employment since February (-15.7%) far exceeds declines observed in previous labour market downturns,” reads a section of the report.
“For example, the 1981-1982 recession resulted in a total employment decline of 612,000 (-5.4%) over approximately 17 months.”
Canada’s the unemployment rate rose 5.2 percentage points in April to 13 per cent.
Comparatively, P.E.I. appears to be faring relatively better than its Atlantic Canadian neighbours. While the Province has seen a 2.8 percentage point rise in its unemployment rate since February, Newfoundland and Labrador has seen its unemployment rate rise by 4 points, while Nova Scotia has seen its unemployment rate rise by 4.2 points. New Brunswick has seen its unemployment rate rise by 6.3 points.
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