Chapter 6 -Media Article
"Canada's economy created 9,300 jobs in May, lower than expected"
The National Post -Saturday, June 09, 2007
Canada's unemployment rate stayed at a very low 6.1% in May compared to the past 30 odd years. There was a full-time employment increase of 32,700 whereas part-time jobs decreased by 23,400. The main areas of employment are construction, information, recreation, culture, accommodation, and food services. These areas have been increasing since the start of 2007. On the other hand, the trade sector and natural resources are not doing too well. For BC, our unemployment rate decreased from 4.4 (April) to 4.2 (May).
For May, analysts predicted 5,000 to 23,000 jobs created. So the actual 9,300 was very disappointing. There was also a forecast for an added 19,000 jobs in May after the disappointing lost of 5,200 jobs in April. According to Statistics Canada, the manufacturing sector lost 12,000 jobs in May even after the 18,600 jobs lost in April. Following after is the 6,400 jobs lost last month in the service industry. That was a great downfall since it's supposed to be one of Canada's strongest industries.
It is to be believed that the Canadian dollar would be stalled due to the weak increase of employment. Also, Canada's main stock index is dropping. It's likely that the Bank of Canada's borrowing costs will increase also.
Relationship to Ch.6-Full Employment GDP
As we know from my previous blog regarding Canada's increasing GDP, we expect more jobs to open up. From the article, there was a "lower-than-expected 9,300 jobs [created] last month" according to Statistics Canada. There was a decrease of part-time jobs, but if we think about it, most post secondary students are off from school around mid-May and early-June. Those students can either switch jobs or increase their hours at work. I believe this is one reason why full-time employment increased while part-time jobs decreased. If we subtract the part-time jobs from full-time, there is a difference of 9,300 jobs. If we also take in account that some people have more than one part-time job and switched to full-time employment, we see that there are more than 9,300 new people employed.
We know that full-employment is very idealistic, but British Columbia is improving with its unemployment rate (from 4.4 to 4.2 in May).
I think that our unemployment will slowly decrease as more jobs open up for the summer. More students will be out of school and searching for work. Also, more money would be spent by the students. Anticipating this, employers will hire more people to keep their business moving and to keep up with the demand.
[Commented on Amy Yeung's blog]
The National Post -Saturday, June 09, 2007
Canada's unemployment rate stayed at a very low 6.1% in May compared to the past 30 odd years. There was a full-time employment increase of 32,700 whereas part-time jobs decreased by 23,400. The main areas of employment are construction, information, recreation, culture, accommodation, and food services. These areas have been increasing since the start of 2007. On the other hand, the trade sector and natural resources are not doing too well. For BC, our unemployment rate decreased from 4.4 (April) to 4.2 (May).
For May, analysts predicted 5,000 to 23,000 jobs created. So the actual 9,300 was very disappointing. There was also a forecast for an added 19,000 jobs in May after the disappointing lost of 5,200 jobs in April. According to Statistics Canada, the manufacturing sector lost 12,000 jobs in May even after the 18,600 jobs lost in April. Following after is the 6,400 jobs lost last month in the service industry. That was a great downfall since it's supposed to be one of Canada's strongest industries.
It is to be believed that the Canadian dollar would be stalled due to the weak increase of employment. Also, Canada's main stock index is dropping. It's likely that the Bank of Canada's borrowing costs will increase also.
Relationship to Ch.6-Full Employment GDP
As we know from my previous blog regarding Canada's increasing GDP, we expect more jobs to open up. From the article, there was a "lower-than-expected 9,300 jobs [created] last month" according to Statistics Canada. There was a decrease of part-time jobs, but if we think about it, most post secondary students are off from school around mid-May and early-June. Those students can either switch jobs or increase their hours at work. I believe this is one reason why full-time employment increased while part-time jobs decreased. If we subtract the part-time jobs from full-time, there is a difference of 9,300 jobs. If we also take in account that some people have more than one part-time job and switched to full-time employment, we see that there are more than 9,300 new people employed.
We know that full-employment is very idealistic, but British Columbia is improving with its unemployment rate (from 4.4 to 4.2 in May).
I think that our unemployment will slowly decrease as more jobs open up for the summer. More students will be out of school and searching for work. Also, more money would be spent by the students. Anticipating this, employers will hire more people to keep their business moving and to keep up with the demand.
[Commented on Amy Yeung's blog]
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