Canadian economy adds 19,200 jobs
09.05.2008 20:01
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- Source: cbc.ca
The Canadian economy added a better-than-expected 19,200 new jobs in April, but several analysts said the employment picture isn't quite as rosy as it might appear on the surface. Analysts called it a "mixed" report, noting that the number of full-time jobs rose by more than 20,000. That's good news, from an economic standpoint. | Unemployment rates by province |
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| Province | April 2008 | March 2008 | Change |
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| N.L. | 13.2% | 12.6% | +0.6% |
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| P.E.I. | 11.2% | 10.4% | +0.8% |
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| Nova Scotia | 7.8% | 7.9% | -0.1% |
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| New Brunswick | 8.3% | 8.5% | -0.2% |
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| Quebec | 7.6% | 7.3% | +0.3% |
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| Ontario | 6.3% | 6.4% | -0.1% |
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| Manitoba | 3.8% | 4.3% | -0.5% |
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| Sask. | 4.3% | 4.1% | +0.2% |
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| Alberta | 3.3% | 3.4% | -0.1% |
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| B.C. | 4.3% | 4.3% | ---- |
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| Source: Statistics Canada |
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But on the downside, the number of private-sector jobs fell by 8,300 and the overall unemployment rate ticked up to 6.1 per cent last month from 6.0 per cent in March as more people entered the labour market looking for work. "The jobs report, in its details rather than the headline employment count, was in line with the prevailing view that the Canadian economy is at this point growing only at a snail’s pace," said Avery Shenfeld of CIBC World Markets. Several analysts noted that employment gains were seen in the accommodation and food-services sectors — where jobs tend to pay less — while the number of higher-paying manufacturing jobs fell by another 14,900. The number of factory jobs has dropped by 111,500 since April 2007, Statistics Canada said. "The jobs created last month are mostly of the kind that generally offer less attractive working conditions and less job security," said Sylvain Shetagne, a Canadian Labour Congress senior economist. Another 16,000 jobs were added in the construction sector. But with clear signs that the housing sector is cooling, that kind of healthy job growth is not expected to continue. "Employment is a lagging, not leading indicator, and much of the growth we have seen so far this year is likely due to past and not future economic strength," said TD economist James Marple. Still, others noted that Canada's economy hasn't caved in to the weakness south of the border. "While the latest climb in Canadian employment sports the odd blemish — a higher jobless rate, weakness in private-sector jobs — the main point is that job growth continues to churn ahead even in the face of a U.S. 'recessionette,'" said Doug Porter, an economist with BMO Capital Markets. Loonie gainsThe Canadian dollar gained 1.12 cents to close at 99.44 cents US, as better-than-expected job growth led some traders to believe that the Bank of Canada may pull back from making any aggressive interest rate cuts. But many analysts say the central bank is still likely to trim interest rates again. "We expect the Bank of Canada to remain wary of any indications that the underpinnings supporting Canada’s robust domestic economy are being shaken by the weakness emanating from the United States," said Dawn Desjardins, an RBC Financial Group economist who forecasts a further quarter-percentage-point cut coming later in the year. Small employment increases were seen across most of the country, with eight of the 10 provinces adding jobs. Ontario gained 12,000 jobs overall, despite losing factory jobs. Manitoba added 9,000 jobs, pushing the province's unemployment rate down half a percentage point to 3.8 per cent. Quebec was the only province to experience net job losses for the month. The province lost an estimated 19,800 jobs in April, mostly among young people. That pushed its unemployment rate up 0.3 percentage points to 7.6 per cent. Statistics Canada called it the first significant employment decline in two years in the province. Average hourly wages rose at an annual rate of 4.3 per cent in April. While that's a drop from the 4.7 per cent rate in March, it's still well above the inflation rate. Post a commentPeople have commented on this storyRecommend this storyPeople have recommended this storyStory Tools: E-MAIL | PRINT | Text Size: SMLXL | REPORT TYPO | SEND YOUR FEEDBACKStory comments (0)Sort:Most recent | First to last | Most recommendedPost your commentNote: The CBC does not necessarily endorse any of the views posted. By submitting your comments, you acknowledge that CBC has the right to reproduce, broadcast and publicize those comments or any part thereof in any manner whatsoever. Please note that comments are pre-moderated/reviewed and published according to our submission guidelines. 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