Canadian Labour Congress

Canadian Labour Congress

July 08, 2005 09:25 ET

Job Growth: the Trend Is Weak, Georgetti Says

Attention: Business/Financial Editor, News Editor, Government/Political Affairs Editor OTTAWA--(CCNMatthews - July 8, 2005) - "The trend is good, but it is a weak trend," says Ken Georgetti, president of the Canadian Labour Congress commenting on Statistics Canada's Labour Force Survey for the month of June - following up on his comments a month ago when he said about the May figures, let's hope it's a trend!

"For us in the labour movement, the good news in these statistics is really dampened by two factors: too many are left behind and the quality of newly-created jobs is questionable," explains Georgetti. He stresses the fact that summer jobs creation is soft and that there are chronically 1.2 million Canadians working women and men who want to work but are still left out by our economy. Moreover, in net terms, the new jobs of 2005 are largely in the self-employed category, which most often carry a great deal of insecurity.

The unemployment numbers - Statistics Canada's Labour Force Survey reports that in June 2005, last month, the unemployment edged down slightly to 6.7% from a rate of 6.8% in May. In June, contrary to previous months, manufacturing actually gained 6,100 jobs, still that sector has accumulated losses of 156,000 jobs since November 2002. The employment rate for students aged 20 to 24 is down a full 3 percentage points compared with last year. In June, there were 1,162,100 Canadians who wanted to work but did not have a job.

Economist Pierre Laliberté's Analysis

• Once again the Labour Force Survey teases us with overall numbers that look quite good, but still do not provide much cause to celebrate. That the proportion of jobless is as good as it has been since 1976 speaks mostly to the power of ongoing low interest rates.

• There are soft patches in the numbers that simply will not go away and could be the harbinger of problems down the road. While construction and natural resources sectors have been quite resilient, manufacturing and private sector services remain generally uncertain.

• The weakness in services might help explain why the youth employment situation is not in step with the rather good adult employment situation.

• After a healthy surge earlier this year, private sector services lost over 30,000 jobs in June. That drop has affected trade, transportation, and information, culture and recreation. The food and accommodation industry has perked up slightly, but been generally down.

• It is also important to note that looking at the overall picture, a disproportionate share of new jobs are created through self-employment rather than hirings by employers. This situation recalls what we experienced in the 1990s when self-employment grew in importance because of employers' reluctance to hire.

The Canadian Labour Congress, the national voice of the labour movement, represents 3 million Canadian workers. The CLC brings together Canada's national and international unions along with the provincial and territorial federations of labour and 137 district labour councils. Web site: www.canadianlabour.ca
/For further information: Pierre Laliberté, economist (819) 360-6154/ IN: ECONOMY, FINANCE, LABOUR, POLITICS, TRADE

Contact Information

  • Jean Wolff, Director, Communications Department, Canadian Labour Congress
    Primary Phone: 613-526-7431
    Secondary Phone: 613-878-6040
    E-mail: communications@clc-ctc.ca