Canadians lost 71,000 jobs in November – almost triple expectations – and
the unemployment rate crept up to 6.3 per cent, as Ontario employers felt
the harsh impact of the U.S. recession.
That's the biggest month of job
losses since the recessionary period of 1982, and puts the unemployment rate
at its highest point since November, 2006. In percentage terms, it's the
biggest month of job losses since February, 1991, also a time of recession.
It comes after three months of solid job creation in Canada, but widespread
job losses elsewhere in the world, especially the United States, mired in
“Deteriorating global job markets have arrived on Canada's doorstep,”
said economists at Scotia Capital Inc. “The country is no longer bucking the
general trend of lost jobs in most major economies.”
Economists had been expecting the job market to shed 25,000 jobs in
November, and they quickly warned that Canada's job market is poised to
“Sadly, more jobs cuts are coming,” said Jennifer Lee, economist at BMO
Nesbitt Burns, pointing to the announcement on Thursday that AbitibiBowater was
closing a mill in Newfoundland, and reports on Friday morning that General
Motors will be temporarily laying off 700 workers in Oshawa in February.
Ontario was the hardest hit area in November, with the manufacturing sector
responsible for most of the cuts. Manufacturing and construction are poised for
sharp job losses in the months to come, warned the Scotia economists.
“In our opinion, this is the start of a volatile trend that will see U.S.
supply chain hits trickling across the border more aggressively in the coming
months,” they said in a note to clients.
The November losses were divided between full-time and part-time jobs.
Ontario took the brunt of the job losses, with 66,000 fewer positions, mainly
full-time. Manufacturing was particularly weak, with employers eliminating
42,000 factory jobs in Ontario, a worsening of a downward trend that has
characterized the sector since 2002.
Ontario's unemployment rate jumped to 7.1 per cent in November from 6.5 per
cent the month before – putting the Ontario rate far above the national average.
Nova Scotia also saw jobs losses totalling 4,400, but other provinces were
By sector, manufacturing was the hardest hit, seeing a national drop of
38,000 positions. Public administration shed 27,000 positions as hiring
associated with the federal election in October was reversed.
With political stability in Ottawa over how to manage the economy threatening
to cause another election at any time, “perhaps this is the solution for
delivering stimulus!” joked Mark Chandler, fixed income strategist at RBC
Goods industries decreased employment by 33,000 jobs, while services cut
38,000 positions. That's a change from earlier this year, when services
employment was stable.
Over all, Canada saw 32,000 fewer full-time positions, and 38,000 fewer
part-time positions in November, compared with a month earlier.
Still, wages were on the rise, with the year-over-year growth in the average
hourly wage at 4.6 per cent – far higher than inflation, which was 2.6 per cent
By gender, men were harder hit than women in November. Employment fell by
40,000 for men over the age of 25, while women saw little change. Employment for
women has been double that of men since the start of the year.
So far this year, employment has increased 0.8 per cent or 133,000 jobs – a
far slower pace than the 2.2 per cent growth or 361,000 positions seen during
the first 11 months of 2007, Statscan noted.
While the unemployment rate of 6.3 per cent is low by historical standards,
it is 0.5 percentage point above the 5.8 per cent seen at around the end of 2007
and the beginning of 2008.
The employment rate, which shows the portion of the working-age population
that has a job, dropped to 63.3 per cent in November from 63.7 per cent in
The jobs numbers will probably strengthen the Bank of Canada's resolve to cut
interest rates by half a percentage point next week, economists said, especially
since the unemployment figures have a strong influence on consumer confidence.
Commentary by the Ottawa Mens Centre in the Globe and Mail
Ottawa Mens Centre.com, from Ottawa, Canada wrote: 'By gender,
men were harder hit than women in November'
That's probably not a politically correct statement but the article
unfortunately does not go on into the stats that show just how hard men have
Spare a thought for all those laid off 'single fathers' who by reason of a
determined mother and a dead beat family court judge, only get to see their kids
every second weekend while the FRO , (Family Responsibility Office) 'ENFORCE'
payments which means, fathers are unemployed, cant pay support , end up
incarcerated, unable to afford a lawyer to obtain a variation.
Our Ontario Government's strong feminist leanings make it next to impossible for
an unemployed father to go to court and seek a lowering of support according to
guidelines of 'current income'.
Its getting worse, judges now order 'security for costs' before a variation can
be sought, its a system set up to destroy men and ensure they never see their
kids again, not to mention destroy their second marriages and children from
their second marriages.
Ontario needs to look at how Australia handles child support, one phone call,
one income tax return and its automatic. Nothing like the Ontario Injustice
- Posted 05/12/08 at 11:51 AM EST