Janet Whitman, Financial Post
Canada, which remains on much sounder economic footing than the United States, had a better-than-expected increase of 24,700 workers added to payrolls in May, with most of the gain in full-time and private-sector positions, Statistics Canada reported. Bay Street had been forecasting a 15,000 gain.
The U.S. rate isn't likely to head much lower this year or next because the expected U.S. economic growth of around 3% or 4% won't be enough to create sufficient jobs for the roughly 15 million Americans out of work and new entrants in the labour market.
Canada's strong jobs report, meanwhile, shows the Bank of Canada was on the right track by raising interest rates earlier this week despite the financial turmoil in Europe, said Benjamin Reitzes, an economist with BMO Capital Markets. "Canadian employment is now only 108,000 from the peak hit in October 2008, and is up 1.7% from a year ago, much better than the still-negative yearly change in the U.S.," he said.
The strong report indicates more interest-rate increases are coming, perhaps as soon as July, some analysts said. http://www.financialpost.com/Jobs+stall/3115343/story.html
Interestingly enough, what I can find recently indicated that new jobs were mostly in the private sector and if full-time is outpacing part-time, it's only by a small margin.
ReplyDeleteSo what we may be seeing here is the traditional surge of tourism based jobs that will evaporate in a few months. What I'd rather see is indications that large construction projects employing hundreds of highly paid professionals were restarting, which I would consider an indication that we're truly on the road to recovery. Instead I'm seeing indications that we're getting lots of low paying, mostly unskilled, seasonal work...
And that's followed by news that the government wants to raise interest rates...
Not inspiring news...
- Scott