Canadian Labour Congress

Canadian Labour Congress

July 09, 2010 11:47 ET

Georgetti Says Good News on Jobs Undercut By Losses in Manufacturing Sector

CLC President comments on Statistics Canada job numbers for June

OTTAWA, ONTARIO--(Marketwire - July 9, 2010) - There was some good news regarding employment in Canada in June but it was undercut by a continuing loss of jobs in the manufacturing sector, says Ken Georgetti, president of the Canadian Labour Congress. Georgetti was responding to the release by Statistics Canada of its monthly Labour Force Survey. 

Statistics Canada reported that employment rose by 93,000 in June but almost half of those jobs were part-time and there were job losses in manufacturing. "It is always good news when jobs are created," Georgetti says, "but too many of these new jobs are part-time and precarious."

Georgetti says he is especially concerned with the continuing loss of jobs in the manufacturing sector. More than 14,000 jobs were lost in manufacturing between May and June. "The number of manufacturing jobs is at its lowest level in Canada in 35 years," Georgetti says. "This is frightening and should be of great concern to our governments at all levels. Canada needs an industrial strategy and governments must continue with economic stimulus measures that have saved us from sinking into recession," he adds.

The unemployment rate for June was 7.9 %. There were 1,475 million unemployed Canadians in June, a number well above the 1,137 million who were unemployed in October 2008.

Quick Analysis from CLC Senior Economist Sylvain Schetagne

The performance of the labour market in June 2010 was quite positive. The number of full-time jobs in Canada increased relatively rapidly (+48,900), but not as rapidly as in May (+67,300). The number of full-time jobs still remains below full-time employment in October 2008 (-127,200). The number of part-time jobs, many of which were involuntary, was also up in June (+44,400). Fully 19.2% of all Canadian workers are part-timers, a proportion higher than that in October 2008 (18.6%).

The unemployment rate was down in June to 7.9%, but the long term unemployment rate remains high. The percentage of Canadians who have been unemployed for more than 6 months was 20.5% in June and has been above 20% since January 2010. 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 10.6% in June 2010, a rate considerably higher than what was observed in October 2008 (8%).

Jobs were created last month for both men and women, in all age groups and most industries. The bad news was the record low level of employment observed in manufacturing. In June 2010, the level of employment in manufacturing was 1,735,500, down by 14,300 from the previous month. This is the lowest level observed in about 35 years. It is actually below the lowest point observed in the recessions of the early 1980s and the early 1990s, and lower than any levels observed since the beginning of the current "great recession".

The Canadian Labour Congress, the national voice of the labour movement, represents 3.2 million Canadian workers. The CLC brings together Canada's national and international unions along with the provincial and territorial federations of labour and 130 district labour councils. Web site: www.canadianlabour.ca

Contact Information

  • Canadian Labour Congress
    Sylvain Schetagne
    Senior Economist
    613-526-7412
    or
    Canadian Labour Congress
    Dennis Gruending
    Communications
    613-526-7431
    Mobile: 613-878-6040