Monday, September 12, 2016

Canada's Public Sector Adds Jobs after Unemployment Rate Increase

Based on "Canada Adds Jobs in August on Public-Sector Hiring Spree"
By: Paul Vieira
Written on Sept. 9, at 9:22 am


31,200 jobs were lost in Canada in July and 26,200 jobs were added in August. But these additions consisted of full-time jobs leaving a decline in 26,000 part-time positions. Canada's unemployment rate is at 5.9% compared to the United State's 4.9%.


Canada's Public Sector added 57,000 employees in August. These positions include people in government offices, healthcare, education, and public transport.

What is interesting is the fact that this increase did not help workers between the ages of 25 and 54, which are considered "prime wage earning years." We do see a 22,000 increase of employment for youths and a 29,000 increase in employment for people 55 and over. Vieira indicates that this shows a long-term trend of weakness in the labor market. 

David Tulk, chief Canada strategist at ID Securities, stated that hours worked only declined by 0.3% and wages only rose by 1.5% during a 12-month basis. "This is not really a lot to get excited about," Tulk said. 
                                                                             

One reason behind the high unemployment rate in Canada is its inability to adjust to the drop in global energy prices, which has decreased business investments and caused layoffs in the country's oil-producing regions. Canada's resources sector has lost almost 40,000 workers in the past year. The Bank of Canada, which kept its interest rate at 0.50%, said this sharp drop in non-energy exports was larger than expected. The bank also said the resumption of oil production should contribute to a rebound in the third quarter.   

Posted by: Deema Alrasheed

3 comments:

  1. Great choice of an article! That is an unbelievable amount of jobs lost in Canada. I was not aware of this. What really amazed me about this article, is that workers between the ages of 25-54 were not given the same amount of job opportunities as other age groups. What are some of your suggestions on how Canada can adjust to the drop in global energy prices?

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  2. Why do you think the increase didn't help the "prime wage earners"? Are these people already employed (hopefully) and thus aren't looking for a job? Or is it because they want cheap (youths) or experienced (those over 55) workers?

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  3. This is an awesome post for if someone looking for the best dream jobs in Government sector. This is the best solution for Job.

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