NEWS
 
Canadian unemployment rate dipped to 6.9 percent in March, most job gains were part-time
The jobless rate matches the lowest point it's been since the 2008-09 recession
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Canada's economy showed signs of thawing out from a long, bitter winter last month, churning out an unexpectedly high 42,900 net new jobs that helped shave the unemployment rate to 6.9 per cent -- matching a post-recession low.

The Canadian jobs gain, although mostly part-time, was about double what economists had anticipated and more than wipes out February's 7,000 dip.

As well, at 6.9 per cent, the jobless rate matches the lowest point it's been since the 2008-09 recession. The employment increase did not budge the participation rate from 66.2 per cent, however, as more Canadians began looking for work in March.

The other surprise in the Statistics Canada report was that the vast majority of the new jobs last month -- 32,500 -- went to young Canadians, the 15-24 age group that has mostly been left behind during the recovery.

Statistics Canada said over the past 12 months, employment in Canada has risen by about 190,000 and the number of hours worked by 1.1 per cent.

If there was a soft spot in the Statistics Canada report, besides the preponderance of part-time work, it was that almost all the new jobs were in the public sector, while new private sector hiring was limited to 3,900. New part-time jobs outnumbered full-time 30,100 to 12,800.

Still, the March numbers will be seen as a positive to the economy, which had been having difficulty gathering momentum during the unusually cold winter. Prior to March, the previous three months had seen a net loss of almost 22,000 jobs.

Most economists believe the unseasonably cold weather both in Canada and the United States, particularly in December, has had a dampening effect on growth in both countries during the winter months.

The expectation is that Canada's gross domestic product growth will be restricted to about 1.5 per cent in the first quarter of 2014 -- about one percentage point below previous expectations.

But analysts are also expecting a strong bounceback as the winter effect subsides and March's numbers is some evidence that the outlook for a stronger second quarter may be on the mark.

The agency said all the new jobs went to the services sector, mostly in the health care and social assistance category, as well as in business, building and other support services

Meanwhile, the goods producing sector shed almost 16,000 jobs, with agriculture and manufacturing both experiencing employment losses.

Regionally, most of the new jobs went to Canada's most populous provinces, with British Columbia adding 18,300, Quebec 15,100 and Ontario 13,400. There were minor job losses in Alberta, Manitoba, Nova Scotia, Newfoundland and Prince Edward Island.

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  1. lea posted on 04/04/2014 09:11 AM
    The economy is efficient enough that we should be embracing a 32-35-hour work week, with the removal of all overtime and the inclusion of benefits to ensure full employment.

    Poor legislative choices have created unnecessary hardships, poverty, lack of benefits and unemployment. Competent government is needed to properly manage the economy.
    1. Frankie posted on 04/04/2014 10:12 AM
      @lea What you're referring to used to exist in the Soviet Union. Human nature eventually eroded their system hence the collapse, as it was economically unsustainable.

      Every political and economic system has its abuses. Some european countries have been a middle ground and even they are finding their economies struggling under the weight of the socialism you propose.

      I completely agree we need competent government however it's impossible to achieve when they waste billions of dollars creating inefficiencies in order to buy votes. The most efficient government would let competition in private enterprise run as much as possible, and have professionals run what government is left with, also known as a pipe dream!
  2. Sonny posted on 04/04/2014 11:08 AM
    Most of the jobs were part time! The policies of the Cons does not work even with their corporate tax cuts(21% down to 15%) and the BoC rate low at 1% since Sept. 2010.
    When the Cons came to power in 2006 the UE rate was 6.4%
    1. Frankie posted on 04/04/2014 02:42 PM
      @Sonny Don't forget the economic meltdown of 2008 which greatly contributed to increased unemployment. Companies usually hire part time if they're uncertain about their growth, if there's a seasonal or project basis to their employment needs, etc.

      Believe results would have been similar with a Fed Liberal gov't in power.
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4 0

Canada's economy showed signs of thawing out from a long, bitter winter last month, churning out an unexpectedly high 42,900 net new jobs that helped shave the unemployment rate to 6.9 per cent -- matching a post-recession low.

The Canadian jobs gain, although mostly part-time, was about double what economists had anticipated and more than wipes out February's 7,000 dip.

As well, at 6.9 per cent, the jobless rate matches the lowest point it's been since the 2008-09 recession. The employment increase did not budge the participation rate from 66.2 per cent, however, as more Canadians began looking for work in March.

The other surprise in the Statistics Canada report was that the vast majority of the new jobs last month -- 32,500 -- went to young Canadians, the 15-24 age group that has mostly been left behind during the recovery.

Statistics Canada said over the past 12 months, employment in Canada has risen by about 190,000 and the number of hours worked by 1.1 per cent.

If there was a soft spot in the Statistics Canada report, besides the preponderance of part-time work, it was that almost all the new jobs were in the public sector, while new private sector hiring was limited to 3,900. New part-time jobs outnumbered full-time 30,100 to 12,800.

Still, the March numbers will be seen as a positive to the economy, which had been having difficulty gathering momentum during the unusually cold winter. Prior to March, the previous three months had seen a net loss of almost 22,000 jobs.

Most economists believe the unseasonably cold weather both in Canada and the United States, particularly in December, has had a dampening effect on growth in both countries during the winter months.

The expectation is that Canada's gross domestic product growth will be restricted to about 1.5 per cent in the first quarter of 2014 -- about one percentage point below previous expectations.

But analysts are also expecting a strong bounceback as the winter effect subsides and March's numbers is some evidence that the outlook for a stronger second quarter may be on the mark.

The agency said all the new jobs went to the services sector, mostly in the health care and social assistance category, as well as in business, building and other support services

Meanwhile, the goods producing sector shed almost 16,000 jobs, with agriculture and manufacturing both experiencing employment losses.

Regionally, most of the new jobs went to Canada's most populous provinces, with British Columbia adding 18,300, Quebec 15,100 and Ontario 13,400. There were minor job losses in Alberta, Manitoba, Nova Scotia, Newfoundland and Prince Edward Island.

Leave a comment:

showing all comments · Subscribe to comments
  1. lea posted on 04/04/2014 09:11 AM
    The economy is efficient enough that we should be embracing a 32-35-hour work week, with the removal of all overtime and the inclusion of benefits to ensure full employment.

    Poor legislative choices have created unnecessary hardships, poverty, lack of benefits and unemployment. Competent government is needed to properly manage the economy.
    1. Frankie posted on 04/04/2014 10:12 AM
      @lea What you're referring to used to exist in the Soviet Union. Human nature eventually eroded their system hence the collapse, as it was economically unsustainable.

      Every political and economic system has its abuses. Some european countries have been a middle ground and even they are finding their economies struggling under the weight of the socialism you propose.

      I completely agree we need competent government however it's impossible to achieve when they waste billions of dollars creating inefficiencies in order to buy votes. The most efficient government would let competition in private enterprise run as much as possible, and have professionals run what government is left with, also known as a pipe dream!
  2. Sonny posted on 04/04/2014 11:08 AM
    Most of the jobs were part time! The policies of the Cons does not work even with their corporate tax cuts(21% down to 15%) and the BoC rate low at 1% since Sept. 2010.
    When the Cons came to power in 2006 the UE rate was 6.4%
    1. Frankie posted on 04/04/2014 02:42 PM
      @Sonny Don't forget the economic meltdown of 2008 which greatly contributed to increased unemployment. Companies usually hire part time if they're uncertain about their growth, if there's a seasonal or project basis to their employment needs, etc.

      Believe results would have been similar with a Fed Liberal gov't in power.
showing all comments

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