Bloomberg.com: Canada — It’s interesting how many people seem to be non-essential.Why?
Canada lost a record number of jobs in January, pushing the unemployment rate to a four-year high of 7.2 percent, as companies struggle to cope with the country’s first recession since 1992.
Employers cut a net 129,000 workers, three times the loss forecast by economists, after a drop of 20,400 in December, Statistics Canada said today in Ottawa. It was the largest drop since the methodology for the survey was changed in 1976.
Today’s job losses may undermine the Bank of Canada’s forecast that the economy will recover more quickly than in previous recessions as credit markets and exports rebound.
Thanks for the bait John.
At least we are not going into trillions of debt like you (insert word of your choice here) Yankees. Your recovery will take much longer.
Despite the job losses, we are doing much better overall in Canada than in the US. I’m lucky enough to be in a city that is among the top three in Canada for lowest unemployment rates.
Yes this is very unfortunate. At least we are not in Iceland.
Canada is 1/10th the population of the USA. If you factor that in, Canada is worse off for the layoffs.
I am from the States but I have manufacturing plants in Canada. When the Canadian dollar was par with the US, I said it would not last for more than 6-8 months and that in order for the Canadian economy to survive, the exchange must go back to 1.15 – 1.2. It is now 1.22. The Canadian economy lags the US by about a year. The housing market just started to get hit there in the last quarter. The Canadian economy is going to go off a cliff in the next year unless the US recovers. There is too much new homes and industrial building that are still in construction and these markets are going to crash. The Canadian economy is too dependent on US exports (our plants in Canada ship bout 25% into the States). If the US doesn’t recover, the Canadian economy won’t survive.
At least they still have health care. Can’t say the same thing about everyone else in the States who was laid off.
Now we are reaping the benefits of a global economy. When one falls, the rest of us fall too.
5,
This may be hard to understand, but the Canadian housing market is COMPLETELY different from the US market. We do not have interest only mortgages. We require a minimum of 5% downpayment, and anything less than 25% requires mortgage insurance. From my small area, houses are still moving, but not as quickly. Whereas you used to be able to sell a junk house at 20% over value, now you will get closer to the real value.
And, just as an aside, in the US, it’s almost impossible to be classified as “unemployed”.
http://img.ragea.net/uploads/1234010029.jpg
Anyhoo… Canada and the US are inexorably linked. In fact, the US and the WORLD are inexorably link. I guess if you keep giving taxpayers money to wall street the “best” won’t leave your country. Of course, if the “best” caused your collapse, maybe you should let the worst run the show next…
BC bud is a HUGE employer! If it really hits the fan the US should go that route. Everyone will be happier, man.
Don’t you mean, maaaaaaannn.
I agree with #5
Housing in Canada reached amazingly high prices last years. Regardless how much better the mortgages were handled, you add the lay off and you’ll start to see a mini metldown.
It might not be as hard as the one in the US, but is gonna be sour anyway.
# 8 Named said, “And, just as an aside, in the US, it’s almost impossible to be classified as “unemployed”.”
This part is true.
Well, I know places that if you are a street vendor (and I don’t talk about hot dog or pretzel vendors), you’re deemed employed. Do you get to that level in the US and Canada? I think not.
# 13 pedro said, “Do you get to that level in the US and Canada? I think not.”
If it is an actual job (you have an employer) you are considered “employed”. Otherwise, it is self employment.
I don’t think we can buy enough jobs to stop the enormous shedding of employment in America and the world. This is truly a correction we have not seen. A lot of the stimulas jobs will be in infastructure improvements. Which nodody will disagree that they are needed. But they will not produce products nor will they produce long term jobs. My question is also how many people will be willing to go out and work on building bridges, and roads? These are not real attractive jobs.It looks like we are becoming a nation of going from place to place working at short term jobs. Is this going to attract more house buying and building? I seen more questions then answers in the stimulas.
# 15 jescott418 said, “I seen more questions then answers in the stimulas.”
Don’t question. Just accept that these pols (who have never done successful turnarounds) have the right answers…
“It’s interesting how many people seem to be non-essential.Why?”
To your point, I think a lot of companies are using the recession as an excuse to lay people off, such as Microsoft.
The job cuts are hitting a little more heavily in Canuckistan currently since we’ve only been in a recession for about 3 months while the US has been in for close to a year. I think everyone has stopped taking bets on when we’ll all get out of it.
On the actual numbers (percentages, etc) Canada and the US count unemployment differently (seasonal, underemployed, how long unemployed, etc). The bottom line is that it’s going in the wrong direction for both countries.
pedro is right, the recession isn’t hitting as hard in Canada overall as in the US or the UK. If you’re in Alberta unemployment numbers are even, if you’re in Southern Ontario you’re getting hammered.
Thermo, if the US economy doesn’t recover then Canada will be hit hard since 80% of our exports go south. Manufacturing will get killed. Energy and building supplies has started shifting to Asia. Tourism has been shifting dramatically away from the US for the last 8 years.
The US is still in far worse shape. It is much easier to fall off the radar for the official unemployment rate in the US.
Those that do lose their jobs in Canada will find a much healthier and complete safety net. What they don’t find are the libertarians accusing them of being irresponsible for losing their jobs.
That’s what happens when you hire idiot management. Bush & Harper
Our banks are also much more solid. They did not get as exposed to the worthless paper as the US. My mortgage is now at 3.2% and dropping every month (variable rate…). I am paying my house off faster than before AND have declined 2 interviews this week. Oh, and the housing market in my area ROSE by 3% last year and is predicted to rise again this year.
The big issue we all face is that the jobs created in the future are more part-time and contract positions. The full time worker is going away. That being said, there are great contract opportunities. Also, the baby boomers will still retire en masse in the next 3 to 4 years. HR will have to scramble.
Canadians will rebound faster than the US and, hopefully, we will make some smart investments in science and technology while the market is so low… Fingers crossed and MP emailed!