Canadian Labour Congress

Canadian Labour Congress

April 08, 2005 08:44 ET

Jobs: Wrong Trend in the Private Sector

Most of news jobs are part-time, many people stop looking for work Attention: Business/Financial Editor, News Editor, Government/Political Affairs Editor OTTAWA--(CCNMatthews - April 8, 2005) - The private sector is still not creating new jobs, youth unemployment is worsening, most of the new jobs are precarious because it's part-time work. This is the reality of Statistics Canada's Labour Force Survey for March. The apparent drop of the jobless rate below the 7% line masks problems in the private sector and the sheer lack of investments in the business sectors that would create and sustain new family-supporting jobs.

"It is always shameful when unemployment goes down because the unemployed have given up and left the job market," says Ken Georgetti, president of the Canadian Labour Congress. "Despair is setting in the heart of a lot of jobless workers and I have not heard a word from the government to acknowledge this situation. This report shows all the wrong trends firming up, but there is no plan on Parliament Hill to shape a long-term job strategy and industrial policy for the country."

The unemployment numbers - Statistics Canada reports that in March 2005, last month, the unemployment rate edged down to 6.9% from 7% the previous month. The manufacturing sector is still short 114,000 compared to November 2002. With a decrease of 29,200 jobs since December 2004 in accommodation and food services, the losses are increasing in the tourism related industries. In March, the number of Canadians who want to work but do not have a job now totals 1,192,700.

Economist Pierre Laliberté's Analysis

"The worrisome fact that jobs are of an increasingly bad quality despite the seeming stability on the unemployment front," says Pierre Laliberté, senior economist at the Canadian Labour Congress.

• Private sector employers as a whole are still not hiring -- dollar sensitive industries (manufacturing, accommodation notably) show weakness. As a result, the public sector has been holding the bottom with a net job creation

of 55,600 since the beginning of the year, but failing to make up for a weakening private sector.

• Since last December, all of the net job creation has been part time jobs and self-employment departments. Moreover, over the past year almost all of the net new jobs were temporary. This weakness translates in the wage department as part-time, temporary and self-employment work typically pay less than regular full-time jobs.

• The current situation clearly vindicates the decision of the Bank of Canada to be cautious, and not increase interest rates in the near future. It should also prompt increased attention on the part of policymakers as to where Canadians will be going in a context of heightened world competition with an appreciated currency.

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.clc-ctc.ca /For further information: Pierre Laliberté, economist, 613-526-7409/ 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