A waitress works on the outdoor patio at Joey Don Mills Grill and Lounge, in Toronto, on April 1, 2021.Nathan Denette/The Canadian Press
Ontario’s job market charted a very uneven recovery over the course of 2021, with employment in low-wage industries remaining woefully below prepandemic levels, while the number of people employed in higher-wage white-collar jobs soared to levels not seen in years.
A new report from the province’s Financial Accountability Office paints a detailed picture of how polarized the province’s job market became in 2021. Employment in the accommodation and food-services industry, in particular, were furthest from prepandemic levels, while sectors such as tech, insurance, real estate and finance were not only barely affected by the pandemic, but recorded significant job growth.
“The impact of the pandemic can be seen most in industries with close customer contact and those jobs have not come back. Any time there was a lockdown, those were the first industries to be shut down and the last to open up,” said Peter Weltman, Ontario’s financial accountability officer.
The accommodation and food-services sector lost roughly 110,000 jobs in 2020, but gained back only 18,100 positions in 2021 – employment levels remained 20.6 per cent below what they were in 2019.
Monthly employment trend
by industry in Ontario
2020-2021, in thousands of jobs
Difference from Feb. 2020 employment
Feb. 2020 employment
Accommodation and
food services
Professional, scientific and
technical services
-53.1
450
(-11.9%)
750
400
93.6
(14.0%)
350
700
300
650
250
J
A
J
O
J
A
J
S
D
J
A
J
O
J
A
J
S
D
2020
2021
2020
2021
the globe and mail, Source: financial
accountability office of ontario
Monthly employment trend
by industry in Ontario
2020-2021, in thousands of jobs
Difference from Feb. 2020 employment
Feb. 2020 employment
Accommodation and
food services
Professional, scientific and
technical services
-53.1
450
(-11.9%)
750
400
93.6
(14.0%)
350
700
300
650
250
J
A
J
O
J
A
J
S
D
J
A
J
O
J
A
J
S
D
2020
2021
2020
2021
the globe and mail, Source: financial
accountability office of ontario
Monthly employment trend by industry in Ontario
2020-2021, in thousands of jobs
Difference from Feb. 2020 employment
Feb. 2020 employment
Accommodation and food services
Professional, scientific and technical services
-53.1
450
(-11.9%)
750
400
93.6
(14.0%)
350
700
300
650
250
J
A
J
O
J
A
J
S
D
J
A
J
O
J
A
J
S
D
2020
2021
2020
2021
the globe and mail, Source: financial accountability office of ontario
Other sectors that were significantly affected by the pandemic, and had still not recovered to their prepandemic state were retail, and transportation and warehousing. The number of people employed in retail jobs was 1.4 per cent below the prepandemic level, while transportation and warehousing employment levels were 5.8 per cent below what they were in 2019.
“Despite record job vacancies, accommodation and food services had the slowest employment growth since 2019,” the report stated, adding that this could partly reflect workers switching to other industries amid health concerns and repeated pandemic-related restrictions.
By contrast, jobs in the services-producing sector grew by 5.2 per cent, according to the report, with the annual employment level remaining just 0.2 per cent below 2019 levels.
Annual employment change
by industry in Ontario
Comparison to pre-pandemic 2019, in thousands of jobs
Professional, scientific, tech. services
70.5
Finance, ins., real estate, rental, leasing
34.9
Public administration
32.6
Healthcare/social assistance
18.2
Manufacturing
14.7
Info., culture, recreation
7
Educational services
5.5
Forestry, fishing, mining, oil, gas
0.7
Utilities
-2.4
Construction
-6
Agriculture
-7.6
Wholesale/retail trade
-15
Other support serv. (excl. public admin.)
-22.7
Transport./warehousing
-22.8
Businesas, building, other support serv.
-25.3
Accomodation, food services
-92.6
the globe and mail, Source: financial
accountability office of ontario
Annual employment change
by industry in Ontario
Comparison to pre-pandemic 2019, in thousands of jobs
Professional, scientific, tech. services
70.5
Finance, ins., real estate, rental, leasing
34.9
Public administration
32.6
Healthcare/social assistance
18.2
Manufacturing
14.7
Info., culture, recreation
7
Educational services
5.5
Forestry, fishing, mining, oil, gas
0.7
Utilities
-2.4
Construction
-6
Agriculture
-7.6
Wholesale/retail trade
-15
Other support serv. (excl. public admin.)
-22.7
Transport./warehousing
-22.8
Businesas, building, other support serv.
-25.3
Accomodation, food services
-92.6
the globe and mail, Source: financial
accountability office of ontario
Annual employment change by industry in Ontario
Comparison to pre-pandemic 2019, in thousands of jobs
Professional, scientific, tech. services
70.5
Finance, ins., real estate, rental, leasing
34.9
Public administration
32.6
Healthcare/social assistance
18.2
Manufacturing
14.7
Info., culture, recreation
7
Educational services
5.5
Forestry, fishing, mining, oil, gas
0.7
Utilities
-2.4
Construction
-6
Agriculture
-7.6
Wholesale/retail trade
-15
Other support serv. (excl. public admin.)
-22.7
Transport./warehousing
-22.8
Businesas, building, other support serv.
-25.3
Accomodation, food services
-92.6
the globe and mail, Source: financial accountability office of ontario
Much of the job growth in the service sector was driven by jobs that could be done remotely. The number of people employed in professional, scientific and technical services soared by 14 per cent (or 93,600 jobs) between February, 2020, and December, 2021, while the finance, insurance and real estate sectors saw job growth of 6.3 per cent (or 38,200 jobs) in that same time frame.
“Since 2019, employment gains have been concentrated in positions that usually require a university education, while losses were observed in occupations that usually require less education,” said Mr. Weltman.
Data from the report showed that since 2019, there was an 8.3-per-cent gain in employment (equivalent to 196,900 jobs) among those with a university education, while those who had completed high school or occupational training certifications saw a 7.5-per-cent decline in employment levels. “This discrepancy could suggest that some employers may be open to hiring someone without a university degree, but may substitute that with on-the-job training,” Mr. Weltman said.
The report also showed that recent immigrants between ages 25 and 54 seemed to find jobs easily, compared with those born in Canada. Employment levels among recent immigrants rose by 8.3 per cent in 2021 – that number was just 1.9 per cent in 2019. Employment grew by just 1.8 per cent among those born in Canada in that same age group.
The unemployment rate among visible minorities declined from 17.4 per cent to 7.4 per cent between July, 2020, and December, 2021. Over that same period, the unemployment rate amongst those who did not identify as Indigenous or visible minority declined from 9.5 per cent to 4 per cent.
Your time is valuable. Have the Top Business Headlines newsletter conveniently delivered to your inbox in the morning or evening. Sign up today.