November 4, 2012
Canada's labour market stalls
Statistics Canada's employment report for October revealed that Canada’s jobs market is stalling. The poor showing in October follows two months of gains in September and Ausgust.
The country’s unemployment rate was at 7.4 per cent, with just and addtion of 1,800 jobs. The employment number is well shy of what economists had expected.
The increase in October’s employment number was due to an increase in the ranks of the public sector, by 37,000. Private companies made cut back in their recruitments.
The outlook for bringing down unemployment in Canada isn't good at this point. With weak economic growth in Canada, the US, Europe and Asia, the unemployed will have a hard time looking for meaningful full time employments.
Young people strugggling to find employment
With a jobless rate of almost 15 per cent, young people fresh from colleges and universities are strugging to find employments. Canada's jobless rate is high, though much
lower than those of many countries in Europe.
The outlook for employment frowth is not optimistic as the employment for 2012 todate is up by just 1.3 per cent, with a total of 229,000 positions of which 157,000 are from the private sector while the public sector contribute to 74,000 of the [positions.
Slowing pace of growth
Real GDP having contracted by 0.1 per cent in August and the RBC purchasing managers' index for October showed that the pace of growth in the manufacturing sector slowed for the
fourth consecutive month.
In four of the past six months, the private sector has cut back as reported by senior economist Matthieu Arseneau of National Bank Financial.
With likely tightening in the public sector spending cuts in a number of provinces next year, and poor showing in the private sector with earnings of TSX companies down 30 per cent so far in Q3, hiring and new employments are doubtful. The market conditions for labour are likely to remain difficult in the months ahead.
Return to homepage.