Labour market slows
Canada's jobs market stalled again in August - that wasn't supposed to happen - and the unemployment rate inched up to 7.3 per cent.
Today's report from Statistics Canada marks the second consecutive month of trouble, adding urgency to Prime Minister Stephen Harper's shift of focus to job creation, though he isn't saying what he could do. And it comes just one day after President Barack Obama's $450-billion (U.S.) jobs package.
The economy lost 5,500 jobs as the construction, transportation and resources sector dragged down the market, The Globe and Mail's Tavia Grant writes. The health care and social assistance sectors gained.
Today's disappointing report comes amid unemployment troubles the world over, as The Globe and Mail's Barrie McKenna reports. Canada's jobless rate remains well below those of other ailing countries, but is still projected to remain above 7 per cent for quite some time.
In one good sign, full-time employment rose and part-time positions fell. Having said that, all of August's job creation was in the public sector, while the private sector lost 21,000 jobs.
Over the past year, the economy has created almost 225,000 jobs, an increase of 1.5 per cent. Full-Time work is up by 2.2 per cent, and part-time jobs down by 2.3 per cent.
And it's certainly not looking good for the nation's youth, who are suffering a jobless rate of 14 per cent, though that's down slightly from August.
How bad is the overall report? Canada's jobless rate is nowhere near those of many other countries - the U.S. rate is above 9 per cent, for example, and Spain's tops 20 per cent - but Mr. Harper is right to turn his attention to jobs.
But forget for a moment that Canada fares better, and has regained all of the jobs lost to the recession, and focus on the fact that almost 1.4 million Canadians can't find work. And those are the ones who are counted.
Deputy chief economist Douglas Porter of BMO Nesbitt Burns said it's clear the jobs market is softening and, in an ominous projection, he expects the level unemployment to continue to inch up.
"Looking through the statistical fog, the underlying trend in Canada’s job market is beginning to cool," Mr. Porter said.
"While one shouldn’t read too much into a small monthly decline in jobs - even in the very best years for the Canadian economy, two to three monthly job declines are common - there are enough other signs to suggest employment gains are losing momentum after a surprisingly strong first half of the year. We look for the jobless rate to drift slightly higher in the next few months, as the economy deals with slower activity globally."
Full Article
Source: Globe&Mail
Canada's jobs market stalled again in August - that wasn't supposed to happen - and the unemployment rate inched up to 7.3 per cent.
Today's report from Statistics Canada marks the second consecutive month of trouble, adding urgency to Prime Minister Stephen Harper's shift of focus to job creation, though he isn't saying what he could do. And it comes just one day after President Barack Obama's $450-billion (U.S.) jobs package.
The economy lost 5,500 jobs as the construction, transportation and resources sector dragged down the market, The Globe and Mail's Tavia Grant writes. The health care and social assistance sectors gained.
Today's disappointing report comes amid unemployment troubles the world over, as The Globe and Mail's Barrie McKenna reports. Canada's jobless rate remains well below those of other ailing countries, but is still projected to remain above 7 per cent for quite some time.
In one good sign, full-time employment rose and part-time positions fell. Having said that, all of August's job creation was in the public sector, while the private sector lost 21,000 jobs.
Over the past year, the economy has created almost 225,000 jobs, an increase of 1.5 per cent. Full-Time work is up by 2.2 per cent, and part-time jobs down by 2.3 per cent.
And it's certainly not looking good for the nation's youth, who are suffering a jobless rate of 14 per cent, though that's down slightly from August.
How bad is the overall report? Canada's jobless rate is nowhere near those of many other countries - the U.S. rate is above 9 per cent, for example, and Spain's tops 20 per cent - but Mr. Harper is right to turn his attention to jobs.
But forget for a moment that Canada fares better, and has regained all of the jobs lost to the recession, and focus on the fact that almost 1.4 million Canadians can't find work. And those are the ones who are counted.
Deputy chief economist Douglas Porter of BMO Nesbitt Burns said it's clear the jobs market is softening and, in an ominous projection, he expects the level unemployment to continue to inch up.
"Looking through the statistical fog, the underlying trend in Canada’s job market is beginning to cool," Mr. Porter said.
"While one shouldn’t read too much into a small monthly decline in jobs - even in the very best years for the Canadian economy, two to three monthly job declines are common - there are enough other signs to suggest employment gains are losing momentum after a surprisingly strong first half of the year. We look for the jobless rate to drift slightly higher in the next few months, as the economy deals with slower activity globally."
Full Article
Source: Globe&Mail
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