LONDON, ONT. -- Grim new evidence that temporary closures and pandemic-related layoffs are hammering the local job market.
The 8.9 per cent local unemployment rate in April, tells only part of the impact.
According to employment data from Statistics Canada, 18,200 jobs have been shed in the London-St. Thomas region since the pandemic began in March.
“This has real-life impact on individuals,” says London Mayor Ed Holder. “People who have been impacted by job loss, it’s really tough on them.”
After consulting with business leaders, Holder predicts the pace of economic recovery will be slower than the rapid pace of the downturn, “I don’t see this as quick, but if we see this as steady growth, there will come a point that we work through this.”
And Holder predicts that the region’s labour participation numbers will drop even lower in May. The three-month rolling average will no longer include pre-COVID-19 employment in February.
“This impact is being felt in food services, retail industries, hospitality, accommodation services and the overall tourism environment,” explains Kapil Lakhotia, CEO of the London Economic Development Corporation (LEDC).
Lakhotia adds, the region has performed better than during previous economic downturns. He credits a diversified economy including large employers in essential fields like health care, finance and insurance.
Some companies have even been hiring.
“In fact many advanced manufacturing companies and food processing companies have grown over the last month.” says Lakhotia.
Meanwhile, the mayor’s two COVID-19 economic task forces have released a second update, outlining progress on 27 of 32 initiatives to help during the pandemic and eventual recovery.
“All businesses would like to be back to the old normal. Now it’s the new normal and businesses are trying to adjust to that,” says the mayor.
