Canada’s foodservice and accommodation industry shed 48,200 jobs in October compared to September. This decline in employment represents the largest job loss of any industry in October and reverses five consecutive months of job creation. In May and September, employment in the foodservice and accommodation industry improved by 427,000 jobs after falling by a staggering 615,000 jobs in March and April.
The decline in employment in October was largely felt in Ontario and Quebec due to targeted restrictions of on-premise dining in several regions within those provinces. As a result, the foodservice and accommodation industry still has the largest job loss gap of any major industry, with more than 236,000 jobs yet to be recovered.
Across all industries, however, the latest employment data from Statistics Canada paint a more positive sign that the overall economy continues to recover. Net employment across all industries grew by 83,600 jobs in October following a solid 378,200 jobs created in September. As a result, the unemployment rate in October was 8.9% compared to a peak of 13.2% in May. While all this is positive news, employment gains are expected to slow in the coming months as a rising number of confirmed COVID-19 cases may deter businesses from expanding their workforce. Even once there is a vaccine, it will take many months for Canada’s economy to return to full employment.