What to make of Canada's falling unemployment?
As you might’ve read, Canada’s job market received an applaudable “Atta boy” earlier today.
With the creation of 79,000 jobs last month, the nation’s unemployment rate was able to ease slightly, down now to 8.5 per cent as of November’s numbers.
But, encouraging figures aside, what does all that really mean for sustainable growth?
Well – for starters – it is modest progress. The lion’s share of those 79,000 jobs were found in the service sector (up 73,000 positions), but even that increase could only bring Canada’s unemployment rate down 0.1 per cent (from 8.6 per cent in October.)
Yet let’s give credit where credit is due: economists only figured 15,000 jobs would be added during the month, so November’s boom has – at least in the short-term – largely exceeded employment forecasts.
Past that, though? That’s maybe a different story.
Chief economists painted a picture of “Let’s not start designing that vacation home just yet” to the Financial Post this morning, reacting to the Statistics Canada report with perhaps deserved trepidation.
Derek Holt and Karen Cordes of Scotia Capital offer the most sobering take on the job numbers, pointing out that – despite the creation of nearly 80,000 gigs – overall hours worked actually declined by 0.3 per cent last month. (“More bodies are being hired, but at reduced aggregate hours worked,” they noted.)
Moreover, in the Post’s economist round-up, phrases like “don’t trust this,” “weak productivity,” “unsustainable,” and “no indication of a sustained labour-market recovery” are all too present.
The lesson, apparently: we’re not out of this yet.
According to CIBC World Markets’ chief economist Avery Shenfeld, each percentage point shaved off the national figure is great, but there’s still a “long road to the 6.5 per cent rate that might be considered to be full employment.”
By Jason Buckland, MSN Money
Posted by: R. Johnston | Dec 7, 2021 9:58:30 AM
Talk to me when all the government stimulus money is spent, in the construction industry for example. We won't see the true unemployment figures untill the jobs created artificially by government spending start to dry up. Ya, seventy nine thousand new jobs eh. Pretty tough to get excited about working at Tim Hortons and I think I'll hold off on buying that new Lexus.
Posted by: carl | Dec 7, 2021 10:01:52 AM
Why is it, whenever there's good news, somebody from a investment firm and/or bank rushes out to dispel it. If 79,000 jobs were created, that's 79,000 more paycheques buying goods and services. UI payments barely maintain, take it for what its worth, 79,000 happier people. Recovery will be one job at a time but at least its a recovery and not a downhill spiral.
Posted by: Lori | Dec 7, 2021 10:19:31 AM
Where are the figures for those who have had a drastic reduction in hours? Although they may still have what is now considered a part-time job, they are no longer able to pay their bills and could be making less at their now part-time job than what they would have on EI had they been laid off while a full-time employee. Why isn't there a mandatory policy that these companies have to opt into the Work Share program...they are screwing over their employees and could have saved a lot of jobs. As for all this money apparently going into infrastructure programs...I'm sorry but most of these union guys are very over paid and the majority of this work is seasonal anyway. Their wages, allotted travel and other perks are a big reason that everything to do with construction is so over inflated.
Posted by: SP | Dec 7, 2021 10:26:30 AM
So the total aggregate hours are now higher or lower?
I would love for the government to divide the pay and total hours of paid work by everyone in the country. We could then have an accurate picture of where the economy actually is.
This would eliminate 'x' thousands are students/housewives-husbands/given up looking so they don't count as unemployed. Or we've created 5000 new jobs at Tim Horton's at minimum wage but lost 4500 Ford/GM jobs so good news! unemployment is down by 500 though national income just collapsed.
It could never be implemented though because it would hold Government and business leaders to account.
Posted by: ThePinch | Dec 7, 2021 10:40:23 AM
Personally I'd like to see a few less Government officials and a few more Lori's working 35+ hours a week.
Posted by: ThePinch | Dec 7, 2021 10:42:09 AM
I can't resist a Christmas vision for you: Stevie Harper dishing out double doubles at Timmy's! Now THAT"S a photo op
Posted by: don | Dec 7, 2021 11:32:45 AM
why should we pay into unemplyment when we cant get cant get it if we quit the money we pay into should be are safety net if not we shouldn't pay in to it thank
Posted by: Lee | Dec 7, 2021 2:34:10 PM
Shocking! 80 000 jobs created and there is still a net loss of overall hours worked. That is a lot of hours cut to have a negative number come up for hours worked even though 80 000 jobs were added! I just had my entire department terminated at a place that I have worked for more than eight years and my EI doesn't even cover my rent for my run down Apt. As a father of two my kids will not be having Christmas this year. In fact I couldn't even buy them a proper meal at this point. The food banks are over run and have barely anything to give. I've applied for nearly 60 jobs including temp work and have only received 2 call backs to tell me I didn't get the job and believe me I'm applying for everything and anything. This SUCKS!
Posted by: Marshall | Dec 7, 2021 4:03:18 PM
Companies everywhere are cutting hours and hiring double staff on short shifts, this is done so they do not have to pay employee benefits. Call centers and Tim Horton's shops are not enough to own a house or a car and the statistics have been using the band-aid solution for too long. When the economy is is up, it really means the corporate managers, executive officers owners, and city/port authority are making more money, not real people. Canadians have unrealized talent and skill but employers would rather hire from outside of the country.
Posted by: steph | Dec 7, 2021 6:28:16 PM
no matter what i do i,m still falling behind in the real world. 4500 a month to 1600 a month and thats going to run out soon. then what, believe in the government to say where there for you. i,m drowning in political bs.
Posted by: Archie | Dec 8, 2021 3:08:49 AM
I am not excited about the increase in employment because the figures are inaccurate and misleading.
On the run up to Christmas, retail stores always hire more temporary staff, who will ultimately be laid off in January. Many of these low paid jobs are being filled by desperate people, who have run out of unemployment benefit.
Meantime, thousands of layoff notices have just gone out to people working in high paid jobs in companies such as Bombardier and Rogers Communications. The statistics that include these workers and tens of thousands of employees, who were laid off in January, with a one year separation package, will not be published until January or February of 2010. The stats will not include all the people, who have exhausted their unemployment benefit, the self employed, who lost their businesses or those who had a two income family reduced to one income.
Many hi-tech positions have been exported to places like India and Panama and high paid technicians have been replaced by university graduates earning less than half that of their predecessor.
Another item missing from the stats is the tens of thousands of lost hours due to work sharing and reduced work-weeks and the many reductions in wages that have ultimately been used to pad the multi-million dollar compensation packages of company presidents, who seem happy to capitalize on human misery in times of trouble.
The truth of the matter is there are thousands of high paying jobs that will never be resurrected and, unless we reduce the work-week, it is inevitable that a high unemployment rate, together with low pay rates, will become a permanent feature of our social structure. A few rich families will govern millions of poor. In other words, Canada will be a third world country.
Posted by: Sylvia D | Dec 9, 2021 12:30:07 PM
Hmm, that's funny, cause i just got laid off and i look in the papers everyday... There used to be 5 to 10 jobs i could apply to , now there's maybe one and it's been in there for a month so it's probably a scam. And i'm missing 5 hours for EI... sigh
Posted by: momo | Dec 10, 2021 12:22:46 PM
firstly, manufacture a crisis, and cover up (and reward) those responsible.
secondly, transfer the weight of the economic burden onto the working class (who by the way, are not responsible).
thirdly, manipulate statistics so that the public will continue to blindly fullfill their servitude of consumerism.
spin, shake, serve once every decade for the most incredible pay off for the already preposterously wealthy.
plain and simply put, it is criminal.
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mind active. It's to be skilled enough, confident enough, creative enough and disciplined
enough to seize opportunities that present themselves... regardless of the economy.
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