An Appalling Jobs Report

From my colleague CLC Senior Economist Sylvain Schetagne:

The performance of the labour market in July 2010 was catastrophic. The unemployment rate is back up to 8.0%. The number of full-time jobs in Canada decreased very rapidly in July, when 139,000 full-time jobs were eliminated. The number of permanent employees fell by even more, by 144,400.

Full-time job losses were offset by a shift to part-time work (+129,700). One worker out of 5 now works part-time, the highest proportion ever recorded since data have been collected (1976).

Overall, a total of 9,300 jobs were eliminated in July, the first decrease in employment since the beginning of 2010.

There are still more than 250,000 fewer full-time jobs today than at the beginning of this “Great Recession” in October 2008 (-266,200).

The long term unemployment rate remains high. The percentage of Canadians who have been unemployed for more than 6 months was 22.5% in July, the highest level of long term unemployment observed since the jobs crisis started in October 2008. Before the crisis, the long term unemployment rate was around 12%.

The real unemployment rate, a rate that includes discouraged workers and involuntary part-time workers, was 12% in July 2010, a rate considerably higher than what was observed in October 2008 (8%). There are still 355,000 more unemployed Canadians today than in the fall of 2008

Jobs were eliminated last month for both men and women, in almost all age groups and concentrated in the service industries, especially in educational services (-65,300). Manufacturing is up this month (28,500), but remains near its record low level.

These appalling job numbers clearly show the folly of ending stimulus measures to support an economic recovery which has been cast in doubt. Special EI measures end in Septmber, and the infrastructure investment program ends next March.

2 comments

  • These appalling job numbers clearly show that the economic stimulus package was a short term band-aid solution for a failed economic system. Canadians cannot compete against cheap slave labour. When we try, our participation indicates that we deem slave labour and exploitation as acceptable grounds for competition. It’s a race to the bottom that no body wins. Canada should not involve itself in free trade unless its fair trade. We need to set the higher standard.

  • Yes, Alex. And Canada should repeal NAFTA as Chretien promised in the early 1990’s to get elected. And stop Harper from proceeding with CETA and make sure that the Liberals support the people on CETA and not Harper! We NEED fair trade and NOT free trade!

Leave a Reply

Your email address will not be published. Required fields are marked *