Bank risks substantially weakening our economy, potentially throwing hundreds of thousands of Canadians out of work

Facing a one-two punch of sky-high prices on daily essentials combined with rising credit card, mortgage and other bills, the last thing Canadians need right now is a recession, which could mean massive job losses and economic upheaval. But that’s exactly what could happen if the Bank of Canada raises interest rates Wednesday for the seventh time in the past nine months.

The Bank of Canada, led by governor Tiff Macklem, has already raised interest rates faster than almost any other country. These hikes have left millions of Canadians facing eye-popping rises in credit payments. Combined, Canadians now owe $2.29 trillion in credit, according to TransUnion LLC’s Q3 2022 Credit Industry Insights Report. Rate hikes have even pushed the Bank of Canada itself into the red for the first time in history, with a loss of $522 million in the third quarter.

Central banks raise interest rates to cool the economy and slow inflation, but Macklem has been doing more than just tightening monetary policy. He has also been waging an ongoing public relations campaign against phantom wage growth, arguing that wages are fuelling inflation. There is zero evidence that wages are fuelling inflation. Statistics Canada’s labour force survey, released Friday, shows wage increases are lagging inflation, not driving it.

In a recent report from the Canadian Labour Congress and the Centre for Future Work called A Cure Worse than the Disease? Toward a More Balanced Understanding of Inflation and What to Do About It, economist Jim Stanford lays out evidence showing how wages are not the cause of inflation. Stanford points out that corporate Canada’s pricing power has been fuelling higher prices, resulting in corporate accounts being padded with sky-high, record profits. In 2022, corporate profits in Canada reached the largest share of gross domestic product (GDP) in Canadian history, or put another way, corporate profits grew three times faster than wages since 2019.

Despite all this, Macklem has stubbornly declared that the Bank of Canada will continue raising interest rates, even if it pushes our economy into a harmful recession. With the myopic policy focus on achieving the target inflation rate of two percent, the bank risks substantially weakening our economy and potentially throwing hundreds of thousands of Canadians out of work.

If the Bank of Canada is determined to manufacture an economic recession, we know the pain will not be shared equally. Just last week, the International Labour Organization (ILO) warned that global poverty and income inequality are on the rise worldwide while people’s purchasing power is falling behind. The ILO’s Global Wage Report recently warned that for the first time in history, real wages fell into negative territory in 2022, down 0.9 per cent, with low-income workers and households feeling the pinch most of all.

The ILO cautions that this not only puts the pandemic recovery at risk, but it could also fuel growing social unrest. As the inquiry into the Ottawa convoy occupation wraps up, and the U.S. hearings examining the Jan. 6, 2021 insurrection draw to a close, the prospect of a manufactured economic crisis driving growing social unrest is not one we should take lightly. Pouring more cold water on our economy now — and driving it into a damaging, monetary policy-induced recession — will only make things worse.

As Macklem announces the Bank of Canada’s interest rate decision this Wednesday, he should consider the well-being of the workers and families already paying the biggest price from the cost-of-living crisis. This should start with Macklem pushing pause on more interest rate hikes. Let’s take time to evaluate the impact of previous hikes before raising them any further.

Bea Bruske is president of the Canadian Labour Congress.

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OTTAWA – With the cost of living still rising while wages lag far behind, today’s Statistics Canada Labour Force Survey shows that low unemployment numbers don’t mean workers are seeing positive changes to their paycheques.

According to Bea Bruske, President of the Canadian Labour Congress, there are concrete things governments can do to help.

“Workers are falling behind, especially those in low wage and precarious jobs. What modest wage gains we have seen came largely from increases to minimum wages,” said Bruske. “The reality is, we can’t rely on a tight labour market to give workers fair pay or better working conditions. We need governments to step in and raise minimum wages to a living wage – and then index them to inflation.”

Bruske said that workers across the country are facing very different realities as some provinces have maintained a low minimum wage and others have refused to index wages to the cost of living.

“While the federal minimum wage and the one in B.C. are being raised and indexed, we see some Conservative premiers –in Saskatchewan, Manitoba and New Brunswick – with woefully inadequate minimum wages,” concluded Bruske. “With an average family of four’s food bill predicted to be over $280 a week in 2022, Premiers Moe, Stefanson and Higgs should be ashamed of themselves. Each province has set their minimum wage below $13.00 an hour in 2022. A minimum wage worker would need three full days of work just to pay their family’s weekly grocery bill.”

Bruske added that without government intervention and increased unionization, the strong recovery Canada is experiencing won’t translate into wages keeping pace or improved protections for precarious workers.

“For decades we have seen governments and businesses rigging the system against workers, pushing down wages and making it harder for workers to organize,” said Bruske. “We need strong, progressive public policies that provide workers a real path to unionization – and the ability to bargain fair wages, real benefits and better working conditions.”

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To arrange an interview, please contact:
CLC Media Relations
media@clcctc.ca
613-526-7426

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OTTAWA – Today’s Statistics Canada Labour Force Survey shows that the overly-rosy picture some claim about the economic recovery doesn’t hold up on closer inspection.

Bea Bruske, President of the Canadian Labour Congress points out that the reality facing many Canadian workers is not so positive. Some workers, particularly in lower wage industries, simply haven’t seen the rebound that some professional and higher-wage sectors have experienced. Meanwhile the accommodation and food services sector, which was hurting even before the pandemic, remains 17% behind pre-pandemic employment levels.

“While inflation and rising interest rates squeeze family budgets, wages are simply not keeping up and the jobs recovery we have seen is uneven. Average hourly wages were just 3.1% higher than a year ago, while inflation jumped 5.1%,” said Bruske. “The reality is, hidden in the rosy job numbers are hundreds of thousands of Canadian workers being left behind.”

Bruske also pushed back against the narrative coming from some in the business community about labour shortages when the real issue for many sectors is unfair wages and poor working conditions.

“In some specific sectors, like health care, there are real labour shortages that must be addressed, but often, when businesses talk about labour shortages it is actually employers complaining about finding workers at the rock-bottom wages they were used to paying,” said Bruske. “If restaurants, retail or other low-wage places paid better, offered predictable hours and included real benefits, they would absolutely find there are workers out there for them.”

Bruske added that as people look at the latest labour stats, it is vital they look beyond the top-level numbers to see the full picture. Statistics Canada said the unemployment rate would have been 7.4% last month, if it included people who wanted a job but did not look for one.

“There are so many people that are discouraged from this job market, unable to find decent, secure, work. We all want to declare the pandemic over, but building back the economy is a marathon, not a sprint,” concluded Bruske. “Too many workers and families are not sharing in the recovery while governments and employers take premature victory laps.”

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To arrange an interview, please contact:
CLC Media Relations
media@clcctc.ca
613-526-7426

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“When you sift below the headlines and talk to people about the labour market, you see a different story about Canada’s economic recovery. There has been an uneven rebound and workers, particularly in lower wage industries, simply haven’t seen the return to ‘normal’ that others have,” said Bea Bruske, President of the Canadian Labour Congress (CLC). “So many Canadians are still living with enormous precarity, anxiety, and lack of predictability about the job market.”

What:      CLC President available to react to Labour Force Data

Where:    By phone or by ZOOM

When:     March 11, 2022

Who:       Bea Bruske, President of the Canadian Labour Congress

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Contact information:
CLC Media Relations
media@clcctc.ca
613-355-1962

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Canada’s unions are raising the alarm, warning that Statistics Canada’s Labour Force Survey shows signs that the economic recovery is uneven, wage growth for low-paid workers remains weak, and some groups are being left behind.

“In the US, wages of lower-skilled workers have begun to rise, but wage growth for low-paid workers in Canada, like in the service sector, is still anemic.” said Bea Bruske, President of the Canadians Labour Congress.

Unemployment among racialized workers was almost 10%, with little change since June. Long-term joblessness is still sky high and 100,000 jobless Canadians haven’t worked since the pandemic struck. While women remain well behind pre-pandemic labour force participation rates.

“Canada’s labour market shows growing signs of lasting, long-term damage, and the jobs recovery is uneven. And we must be wary about the impact of the pandemic’s fourth wave in the months ahead,” said Bruske. “We’re certainly not out of the woods. This morning’s report raises serious questions about the quality of the jobs being created and delivers a clear warning that some groups risk being left behind.”

Bruske added that workers of colour, Indigenous workers, workers with disabilities and the long-term unemployed need more help and better training and employment programs to help them rejoin the labour market.

“With the election only ten days away, all parties must rise to the challenge of the moment and present plans for repairing the damage the pandemic has done – and addressing the inequality and insecurity of the pre-pandemic years. Ensuring higher quality jobs are created is vital. We must replace lost jobs with better ones.”

“We have a critical choice before us,” concluded Bruske. “Will we build a recovery with workers at its heart, where inequality is reduced? Will we make decent paid work and training for everyone who wants it a priority? Or will we choose a recovery that puts business interests first, like Mr. O’Toole is proposing?”

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“Our biggest concern is those workers who are at risk of dropping out of the labour market altogether. “Many workers are just giving up because they can’t find work, or because a lack of access to services, like childcare, makes working impossible,” said Bea Bruske, President of the Canadian Labour Congress. “The Liberal government has made big promises about creating jobs and investing in childcare, but we won’t start to see real economic recovery until those investments come to fruition.”

June’s labour force survey, released today by Statistics Canada, showed an increase in low-wage part-time work, in sectors that have high levels of precarity. Long-term unemployment remains a concern – almost half a million Canadians have been without work for six months or longer.

The federal government has made commitments towards the creation of one million jobs and investments in skills and training. Workers who are waiting for those investments are now seeing reductions in the Canada Recovery Benefit (CRB) of $200 per week. Additionally, furloughed workers whose salaries are being subsidized under the Canada Emergency Wage Subsidy (CEWS) will lose all compensation as of August 28.

“This pandemic is not over, we still have a ways to go before businesses and workplaces fully reopen,” said Bruske. “As we inch towards pre-pandemic levels of employment, we have to remind the Prime Minister that there can be no going back. We have to do better than pre-pandemic employment levels and move forward to full employment, so every worker who wants a job can find one.”

Canada’s unions are focused on replacing jobs lost during the pandemic with better ones. This means working with the government on their promise to create one million jobs, and ensuring those jobs pay a living wage and include access to benefits like paid sick leave and easier paths to unionization.

Learn more about new CLC President Bea Bruske here.

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Canada’s unions are calling for swift government action to address rising unemployment evident in today’s latest job numbers.

April’s Labour Force Survey released by Statistics Canada this morning shows that Canada’s economic recovery continues to be uneven, with youth, women and low-wage workers still struggling with joblessness and underemployment.

Canada’s unions are calling on Ottawa to fulfill recent key promises in the federal budget, including significant investments in literacy, skills training and a $15 federal minimum wage, among many other important recovery measures. Quick passage will depend on the support of parliamentarians and on the Senate’s expediting of the Budget Implementation Bill.

“As we continue to battle the third wave of COVID-19, necessary lockdown measures are taking a significant toll on workers and their families,” said Hassan Yussuff, president of the CLC. “We welcome the recent literacy, skills development and training announcements in the 2021 federal budget, as these will help Canadian workers bounce back once the pandemic is over. But we urge the federal government to roll these programs out quickly with the support of all political parties, so that workers don’t face delays in getting back to work. The government should also immediately expand access to education and training for jobless Canadians receiving EI and recovery benefits.”

Following renewed progress in February and March, the latest survey shows that employment fell by 200,000 jobs in April, the biggest losses being in Ontario and British Columbia.

Long-term unemployment – the share of people out of work for half a year or longer – is also on the rise. Prolonged joblessness is now an alarming 170% higher than prior to the pandemic, with the bulk of the increase occurring in low-wage food service and retail occupations affected by COVID-19 public health measures. This trend is worrisome as the long-term unemployed are at higher risk of skills loss and fraying attachment to the job market.

“We encourage the government to target its new recovery hiring program to ensure that employers do not overlook workers at greater risk of being left out,” said Yussuff. “This includes the long-term unemployed, workers with disabilities, Canadians with lower levels of educational attainment, Indigenous workers, and workers of colour. Given the two-speed job-market rebound underway, we need a recovery plan that is inclusive and leaves no one behind.”

To learn more about what Canada’s unions are saying about how we move forward together, visit canadianplan.ca.

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Statistics Canada released its latest Labour Force Survey today. It shows that more than 1.5 million unemployed and under-employed workers continue to struggle to find work, and thousands more have dropped out of the labour force altogether.

While February and March numbers showed strong job gains, the cresting of the Third Wave in April and subsequent lockdowns mean many of those gains could be lost.

“Following February’s achievements, a second month of strong job growth is welcome, but the federal government must stay the course and ensure a strong and broad-based recovery,” said Hassan Yussuff, President of the Canadian Labour Congress (CLC). “We need to see strong fiscal support to bring people back into the job market, especially women and workers of colour, and into decent green and care-economy jobs.”

Last fall’s Speech from the Throne promised the largest investment in Canadian history in training. That investment is what Canada’s unions will be looking for in the federal budget on April 19.

Ambitious investments in training and education are much-needed over the short- and medium term to help workers affected by ongoing technological change. Unions want to see expanded investment in upskilling opportunities and targeted support for the 30% of jobless Canadians who count among the long-term unemployed.

“Now is the time for a rapid return to full employment and investing in improving job quality to help workers fully get back on their feet,” said Yussuff.

To arrange an interview, please contact:
CLC Media Relations
media@clcctc.ca
613-526-7426

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Following higher than expected job losses at the end of 2020, workers faced another large drop in employment, with 213,000 jobs lost last month.

“We’ve lost the small gains we had made in the fall. Canada lost three times more jobs in January than we did the previous month,” said Canadian Labour Congress President Hassan Yussuff.

“Many workers are due to exhaust both unemployment and recovery benefits next month. The federal government must extend these benefits so that workers who are unemployed, through no fault of their own, will be supported until our economy begins a more stable recovery.”

Ongoing lockdown measures aimed at slowing the spread of the virus are inevitably having a devastating effect on job growth. Workers of colour and women have been hit especially hard by the economic upheaval caused by the COVID-19 pandemic.

“Workers are struggling to make ends meet. The federal government must implement strong measures that will help ensure a healthy economic recovery when the pandemic is over. These job numbers highlight the important need for greater access to training opportunities for jobless workers looking to retrain or improve their skill set while receiving EI and recovery benefits,” said Yussuff.

To read more about the direct investments the CLC is calling for, visit canadaplan.ca.

To arrange an interview, please contact:
CLC Media Relations
media@clcctc.ca
613-526-7426

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The December Labour Force Survey, released today by Statistics Canada, shows higher than expected job losses last month. Unemployment rose to 8.6 percent, with employment down 63,000 and job-market participation dropping for the second month in a row.

“These are unprecedented times. The important public health precautions implemented over the past year have had an exceptionally hard impact on workers,” said Hassan Yussuff, President of the Canadian Labour Congress. “Workers in Canada need to know that when the virus is contained, they can count on decent jobs, with good wages, and adequate benefits to help their families bounce back.”

Facing another round of shutdowns as COVID numbers rise, many workers across the country worried that their financial forecast is getting bleaker. Recent reports have revealed stories of personal support workers checking into homeless shelters and other workers failing to claim the federal government’s sick leave program out of fear of reprisal.

“Investing in Canada’s workers is a direct investment in our economy and it is vital to an economic recovery. The federal government must remain focused on income support and assistance to ensure that workers’ jobs are protected,” said Yussuff. “As we invest in a healthy recovery, Canada must also prepare for the long-term future by disaster-proofing our economy so that we are ready when the next crisis hits.”

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November’s labour force survey released today by Statistics Canada showed high rates of long-term unemployment. A total of 1.5 million people are currently unemployed and looking for work; 400,000 have been without work for six months or longer. Another 317,000 workers dropped out of the labour market altogether last month.

“The scale of the jobs crisis has been without parallel in recent memory,” said Hassan Yussuff, President of the Canadian Labour Congress. “The second wave of this pandemic is making life very difficult for many workers, many of whom have given up trying to find work for the time being. Beyond the immediate emergency supports that are helping to put food on the table for these families, government stimulus will be key to putting people back to work.”

The survey also showed that women continue to bear the brunt of child care responsibilities, with 55 per cent more mothers with young children working less than half their usual hours compared to this time last year.

The federal government has made commitments towards the creation of one million jobs and investments in skills and training.

“We’re heartened that the government has promised to make investments in long-term care and child care, two areas that employ significant numbers of women, including many who are racialized,” said Yussuff. “However, time is of the essence and workers need to see concrete actions.”

A recent study showed that investment in early learning and child care would create 200,000 new jobs in child care provision and another 80,000 indirect jobs, including 8,000 construction jobs. It would also increase women’s participation by as many as 725,000 additional workers.

Austerity policies implemented soon after the 2008-09 global economic downturn led to sluggish growth, prolonged unemployment and growing precarity in Canada. In our current crisis, continued income support and expanded public investments will be crucial to help people weather the pandemic’s second wave and to move the nation towards a strong recovery.

To arrange an interview, please contact:
CLC Media Relations
media@clcctc.ca
613-526-7426

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According to Statistics Canada, employment fell by one million in March and the ranks of the unemployed grew by 413,000. Canada’s unemployment rate rose by 2.2 percentage points to 7.8 per cent, the largest single-month increase since comparable data became available in 1976.

“Today’s alarming unemployment numbers underscore the devastation this pandemic is having on workers and has made clear the enormous task in front of us,” said Hassan Yussuff, CLC’s president.

“Right now, working people need secure and adequate incomes, rent and mortgage relief, and a break on bank and credit card fees. The federal government’s commitment to increasing the Canada Child Benefit and expanding the GST/HST credit was welcomed news. As are the emergency benefits package and wage subsidy programs which are integral to preserving jobs and getting money to many of these workers. However, the scope of coverage simply needs to be broadened.”

The latest numbers highlight the impact of current efforts to curb coronavirus infections on communities across the country. Losses were concentrated in accommodation and food services where employment fell by 294,000 jobs, or 23.9 per cent compared to the previous month. Women and vulnerable workers have been hit hardest in this sudden downturn.

All provinces saw increases in the unemployment rate, with the exception of Newfoundland and Labrador and Prince Edward Island. The largest increases were in Quebec (+3.6 percentage points to 8.1 per cent), British Columbia (+2.2 percentage points to 7.2 per cent) and Ontario (+2.1 percentage points to 7.6 per cent).

April employment numbers are expected to show even higher numbers of job losses. The critical need for social distancing will continue to impact the country’s economic well-being. Beyond that, it will take cross-sector efforts to ensure that a full, robust recovery benefits everyone.

“Economic recovery will take all orders of government, business and industry, workers and labour being at the same table building durable, long-term solutions. The CLC will continue to demand action to support the livelihoods of all workers in Canada, now and in the recovery to come,” said Yussuff.

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Part-time jobs in Canada are typically low-wage with no benefits. The gap between part-time and full-time wage earners currently sits at approximately $9 per hour, which disproportionately affects women who account for 75 percent of Canada’s part-time workers.

“With child care identified as a barrier to full-time employment and women shouldering most of the lost earnings, it’s clear that Canada needs a national child care strategy,” said CLC President Hassan Yussuff. “It has been proven again and again that access to child care is a key determinant to improving gender equality. Canada’s unions stand ready to work with governments across the country to build a truly universal, affordable and inclusive child care system.”

Improving women’s employment means addressing the barriers facing the most vulnerable groups of women, and putting in place services and programs that address the systemic roots of discrimination and inequality.

“This government has taken important steps in the process of creating quality, accessible child care,” added Yussuff. “With women making up a significant majority of workers in undervalued and low-wage sectors, there is much more progress we must make toward real equality. Strengthening our child care system would be a good first step.” 

Read the full Labour Market Snapshot here.

For more information and to set up an interview, please contact:

media@clcctc.ca
613-526-7426

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While unemployment rates continue to fall overall, many Canadians aged 15-29 are staying in school or giving up looking for work altogether.

In particular, the number of people aged 25 to 29 who are not in employment, education, or training (NEET) has remained high since the 2008-2009 recession. This is when most Canadians have finished their formal education and should be able to find meaningful work that matches their education and training.

The Labour Market Snapshot is a quarterly report, which examines Canada’s employment landscape to spotlight trends in the economy. Analysis is based on Statistics Canada’s Labour Force Surveys.

Read the full Labour Market Snapshot here.

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The Canadian Labour Congress (CLC) provides a detailed quarterly analysis of select labour market indicators and what it means for Canada’s workers.

In our spring snapshot, the CLC discovers that while job growth in Canada is strong, garnering laudatory headlines, there is a hidden story.

While the unemployment rate hovered near 40-year lows, the overall percentage of employed Canadians continued to trend below levels seen before the global financial crisis of 2008. The ensuing recession led many Canadians – particularly women and youth – to leave or delay their entry into the labour market. These dynamics continue to affect the labour market today.

To learn more, download the spring 2019 snapshot here.

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The numbers show that the problem isn’t just in the energy sector. Canada has lost 22,800 jobs in the natural resources sector over the past year, but during the same period, Canada also lost 15,700 jobs in the manufacturing sector.

Statistics Canada merchandise export data showed broad based declines in export volumes in both February and March, with 10 of 11 sectors experiencing decline in March. Motor vehicles and parts, a major export sector for Canada, led the decline in March.

CLC president Hassan Yussuff says this isn’t what we should be seeing with a lower dollar and extremely accommodative interest rates.

“In these circumstances, business investment in export sectors should be driving growth, but it continues to be insufficient to spark real growth in jobs or productivity,” he said.

“Trade and investment deals like TPP will only continue to undermine Canada’s economic performance,” he added.

The CLC believes Employment Insurance should be used to support a just transition, providing workers training to help them adjust to structural changes in our labour market.

“The infrastructure investments that were announced in Budget 2016 were a good first step but we need to go much further. Canada needs a fundamental shift in how we think about jobs and growth,” said Yussuff.

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The latest numbers, released today by Statistics Canada, show that the Canadian labour market continued to sputter in February. The unemployment rate rose to 7.3 percent, the highest it has been for approaching three years. The number of unemployed Canadians seeking work is up 7.2 percent over 12 months ago.

“These numbers continue to show the job crisis we’ve seen over the past several months,” said CLC President Hassan Yussuff, adding that youth employment has been dropping fairly steadily since October 2014.

In February, Canada lost 52,000 full-time positions, while part-time employment rose by nearly the same amount. The largest job gains occurred in Quebec and B.C. while the heaviest losses occurred in Ontario, Saskatchewan and New Brunswick. The most significant growth sectors were goods production, especially construction, while losses were concentrated in the service sector and resource industries.

Self-employment also rose again — over the past year, self-employment has grown nearly three times as fast as the number of workers in traditional jobs.

“The federal budget on March 22 is a chance for the government to address that reality swiftly, with meaningful investments to create jobs and help unemployed workers and their community’s transition,” Yussuff stated.

Yussuff said Canadian unions will be watching for action on a number of items, including Employment Insurance reforms and investments in infrastructure projects, skills training and workforce development.

In their submission to the pre-budget consultation, the CLC outlined several specific measures the government can take to address the jobs crisis and build a fairer, more prosperous Canada. These include actions committed to during the election, which would have a direct impact on job numbers, including the following:

• Strategic infrastructure investments, particularly in public transit infrastructure, affordable housing, and child care and seniors’ facilities;
• Youth Employment Strategy funding to create at least 40,000 youth jobs a year;
• Development or expansion of pre-apprenticeship training programs; and
• Fixes to Employment Insurance to ensure unemployed workers can access benefits without unreasonable barriers and lengthy delays. This means reversing the Conservatives’ damaging changes to EI eligibility and restoring necessary front-line staff.

Yussuff pointed out that fixing Employment Insurance is one of the best things that can be done to stimulate our economies, as unemployed workers get and spend EI benefits in their local communities within weeks.

“Working Canadians and their families and communities are continuing to face a precarious economic situation, but Canada is well-positioned to turn things around. I’m looking forward to March 22, when we will see our government’s plan to make that happen,” Yussuff concluded.

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The job market was stagnant in January and unemployment rose to 7.2 percent. In Alberta, unemployment rose to 7.4 percent, the first time it has been above the national average since 1988.

Over the past year, unemployment has risen by 123,000 workers across the country: more than half of these (69,000) are in Alberta. Most job creation has been in Ontario, while other provinces continue to struggle with slack labour markets.

Self-employment has grown twice as fast (1.3 percent) as employment (0.6 percent). Private sector job growth continues to be weak, adding only 30,000 jobs over the past 12 months — a growth rate of only 0.3 percent. Two sectors account for most job growth over the last year — health care and social assistance added 90,000 positions, and professional, scientific, and technical services added 38,000 positions.

“These job numbers and the slow economic growth we’re seeing now demonstrate the need for the kind of immediate stimulus that would come from urgently needed fixes to the employment insurance program,” said CLC president Hassan Yussuff.

The Liberal government has promised to review and improve the program, but Yussuff says there are urgently needed reforms that can be immediately implemented.

“Fewer than 40 percent of unemployed Canadians – and fewer than 37 percent of unemployed Albertans – are receiving EI,” said Yussuff. “Part of the problem is that workers run out of benefits before they can find a new job.”

The immediate reforms the CLC hopes to see include:

• Temporarily extending EI benefits for an additional five weeks to help displaced workers who risk exhausting their benefits while hunting for hard-to-find jobs. This would be especially helpful in hardest hit regions where jobs are especially scarce.
• Returning to the previous definition of “suitable employment” and restoring the “best 14 weeks” pilot programs that created a single national standard for determining benefit levels.
• Eliminating the eligibility requirement of 910 hours of insured employment for new entrants and re-entrants to the labour market to make access to EI fairer, especially for young workers and new Canadians.
• Hiring staff to make up for years of devastating cuts under the Conservatives to help eliminate unacceptable delays faced by workers trying to get benefits approved, decisions on appeals, or questions answered.
• Implementing the election promise for an increase of $200-million in funding for provincial literacy and essential-skills training aimed at those who don’t qualify for EI. While it’s not part of EI, it would help where it’s needed most.

“It takes time for infrastructure spending to kick in and create jobs, so let’s act now to stop penalizing unemployed workers, get them the benefits they paid into and so urgently need, and help them start contributing to their local economies again,” said Yussuff.

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Employment fell by 36,000 jobs in November, and the unemployment rate rose to 7.1 per cent. Nova Scotia and Manitoba saw massive increases in unemployment. Saskatchewan was the only province to see any job gains this month.

“Looking at these numbers and how they fit into the long-term trend, it’s concerning. Our previous government sat on their hands. Now, our new government has an opportunity to turn things around, and there is no time to delay,” said Canadian Labour Congress President Hassan Yussuff.

Looking deeper into the numbers shows that self-employment growth is outpacing regular, paid jobs. Regular paid positions fell by 62,000 in November, partially offset by a 26,000 gain in precarious, self-employed positions.

The Liberal government’s election platform included strong commitments to investing in infrastructure, including new, dedicated funding for public transit, social infrastructure, and green infrastructure. Yussuff said following through on these infrastructure investments should be a key priority for the new government.

Further, while the unemployment rate for young workers fell from 13.3 per cent to 12.7 per cent, that’s because 40,000 young workers dropped out of the labour market in November 2015.

“The situation we’re seeing shows a youth employment strategy is urgently needed, and that must include expanded training and apprenticeship opportunities,” said Yussuff.

This month’s numbers did show a small increase in manufacturing positions; however, Yussuff said he’s concerned the Trans-Pacific Partnership could reverse this trend.

“The TPP has the potential to seriously impact auto parts manufacturing unless significant changes are made,” said Yussuff. “We look forward to public discussion about the details of the agreement and how we can safeguard manufacturing jobs.”

Looking back at the past year, job growth has been slow (0.7 per cent) and concentrated in the public sector. Jobs in the natural resources sector fell by seven per cent or 26,000 over the past year and there has not been an engine of economic growth to pick up the slack. Health care and social assistance was the sector with the largest job growth over the past year, adding 69,000 jobs (a three per cent increase).

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September saw a loss of 62,000 full-time jobs in September—the worst drop in full-time employment since October 2011. The net job gain of an unimpressive 12,100 jobs came from 74,000 new part-time jobs, continuing the troubling trend that has seen three quarters of all jobs created in the last six years as precarious—part-time, temporary or self-employed.

The news is especially harsh for Canada’s manufacturing heartland. Ontario lost 68,000 full-time jobs in September, only offset by part-time gains, for a net loss of 34,000 jobs.

“Since the Conservatives took office, Canada has lost 412,000 manufacturing jobs, including 274,600 in Ontario alone,” said CLC president Hassan Yussuff.

“Now the sector is grappling with Conservative leader Stephen Harper’s decision to push through the Trans-Pacific Partnership, which is expected to cost auto and manufacturing sectors another 20,000 jobs,” he added.

The TPP weakens Canadian content rules and eliminates auto tariffs, forcing parts manufacturing workers to compete with low-wage workers in other countries.

“The Harper government has turned Canada into an exporter of raw materials and that is hurting our economy and making it harder and harder for Canadian workers to find the quality, full-time jobs they need to support their families and feel secure about their future,” said Yussuff.

“We need a change in direction and the only way we will get that is by choosing a new government that rejects lopsided corporate trade deals like the TPP and champions industries that keep good Canadian jobs at home,” he added.

Despite the supposed economic recovery in the second half of the year, the job market continues to sputter. Since June, the Canadian economy has only added an average of 6,000 jobs a month, which is far below the rate of growth of the working-age population.

The national unemployment rate rose again in September, ticking up to 7.1 from 7.0 percent. For 15 to 24 year olds, the unemployment rate rose to 13.5 percent. That means another 18,400 more Canadians lining up next to the 30,000 more Canadians added to the unemployed in August. Unemployment in Saskatchewan, Alberta and above all, Newfoundland and Labrador rose especially sharply.

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August saw the unemployment rate up from 6.8 to 7.0 percent, back to where it was a year ago. Over the last three months, employment growth has averaged just 4,000 jobs per month, down from the 20,000 monthly average earlier in the year.

There was also a significant increase in the number of unemployed – up 40,000 – as more entered the labour force looking for work, only to find no jobs available.

“The Conservative government kept telling us there wasn’t a recession and talking about employment growth, but we know that economic recovery is still weak and that the convincing job growth they promised is still missing in action,” said CLC president Hassan Yussuff.

Yussuff said numbers in Ontario, where expectations were high, that industry – especially manufacturing – would benefit from a lower dollar, are especially disappointing. The unemployment rate in that province jumped from 6.4 to 6.8 percent as 30,000 more people were unemployed and looking for work in August. At the same time, employment fell.

“We are headed in the wrong direction precisely where we shouldn’t be,” said Yussuff.

“Ontario was supposed to become the engine of economic expansion and employment growth, but instead we see a big spike in the number of unemployed and a drop in the overall number of jobs available,” he added.

Manufacturing lost jobs for the third straight month and employment in the industry is up only slightly from last December. Construction employment is down from 12 months ago and significantly (2.1 percent) lower than last December.

“We need a new government in Ottawa, one that recognizes that workers are our strongest competitive advantage,” said Yussuff.

The CLC has called for commitments to expedited large scale investments in infrastructure like green transit, a move that would boost manufacturing, lift business confidence and spark growth.

Investment in public transit for municipalities, for example, would create thousands of local jobs in manufacturing and construction, and boost ridership.

“Canada has a long history of manufacturing high quality transit equipment, so let’s get this going and create the jobs we need,” said Yussuff.

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Youth unemployment rose from June’s 12.9 per cent to 13.2 per cent in July, with 29,000 fewer young workers in full time jobs.

“It’s time for change,” said CLC president Hassan Yussuff.

“We need a new government that will commit to adequately funding initiatives like targeted paid internships and skills training for youth, and requiring that any business benefiting from federal infrastructure spending hires apprentices,” he added.

Canada’s job market also lost 34,000 public and private sector jobs in June, while the numbers of workers in the often precarious self-employed sector rose by 41,000. Over the past year, overall job growth has been stagnant, with unimpressive private sector job growth of just 0.7 per cent.

“The federal election offers Canadians the opportunity to make a better choice for the economy, one that would spur the creation of good jobs, and stop the trend of growing instability and uncertainty facing workers today,” said Yussuff.

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Job creation has slowed; 66,000 jobs were created in the first quarter of 2015, only 33,000 were created in the second quarter.

The numbers also show there was a small market correction to the over abundance of part-time, precarious work and lack of full-time jobs. Canada’s labour market lost 71,000 part-time jobs and gained 65,000 full-time jobs.

Public sector hiring – not private sector hiring – accounted for most of full-time gains, providing 42,000 full-time jobs in June, mostly in British Columbia and Alberta.

“It’s good to see more full-time work created, but the overall economic picture is still grim,” said CLC president Hassan Yussuff.

“Canadians need a new government that will take us in a new direction that creates enough full-time, secure jobs to make up for years of labour market stagnation.”

Recent trade data shows that Canada’s exports continue to fall despite a lower dollar, dashing economists’ hopes that exports would spark economic growth.

“We need a new government that will work with the provinces and the territories to develop a solid manufacturing strategy if we are going to see exports spark the economic growth we need,” said Yussuff.

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Statistics Canada’s Labour Force Survey says May saw the creation of 59,000 jobs, but almost half were part-time. Compared to last month, temporary employment increased twice as fast as permanent employment.

“We aren’t seeing a meaningful reduction in unemployment – instead we have very weak job growth that is barely keeping up with the number of people entering the workforce,” said CLC president Hassan Yussuff.

The weak job creation barely keeps up with the number of people entering the workforce, leaving the unemployment rate at 6.8 per cent, up from 6.6 per cent last October.

Yussuff says the trend does not point to the recovery being promised by government, especially given the contraction of US and Canadian economies in the first quarter of 2015.

“The government needs to change course or we’ll just keep seeing more of the same – the weak and patchy creation of insecure and precarious jobs,” said Yussuff.

“We need the government to invest in ways that create quality, full-time and secure jobs – jobs that can fuel the economy,” he added.

Nearly three quarters of the jobs created in Canada over the past six years have been precarious – part-time, temporary or in the self-employed sector. Nearly a million Canadians have to work multiple jobs just to make ends meet.

The impact is most apparent among younger Canadians, who continue to struggle with double the national unemployment rate. Employment growth for 15-24 year olds in May remained very weak and well behind job growth for core-age workers.  At 13.2 per cent, the unemployment rate for youth is stuck at levels seen in the summer of 2013.

May’s job growth was concentrated in Ontario while other regions saw no job growth or losses in employment.

“Instead of banking on the price of oil, and relying on tax cuts to drive economic activity, let’s find a better choice,” said Yussuff.

The CLC has called on the government to create the quality, full-time and secure jobs Canadians need, for example:

• investing in jobs and training for health care professionals, to better prepare for our aging population and the demands that will place on the health care system
• investing in rapid transit for municipalities and create thousands of local jobs in manufacturing and construction, while also boosting ridership.
• reinvesting in infrastructure and in public services, such as new waste water systems for our cities, or much-needed federal services for our veterans and seniors.

“Investment in people and the communities they live in – not just resource extraction – is a better choice for Canadians and the economy,” said Yussuff.

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“Too many jobs are missing,” said CLC president Hassan Yussuff. “The government says it has created 1.2 million jobs, but the reality is that a smaller proportion of Canadians are working today than before the recession – even when we account for Canada’s aging population.”

On top of that, he added, the majority of jobs being created are precarious – either part-time or in the self-employment category.

January may have seen a net gain of 35,000 positions, but it was the addition of 47,000 part-time positions that made up for the loss of 10,000 full-time positions.

“A lot of self-employment is notoriously precarious, so January’s creation of 41,000 self-employment positions is not a good sign – it’s a sign of labour market stagnation,” said Yussuff.

For young workers, already facing high unemployment rates of around 13 percent, the news is bad too – 15,000 young workers reported they’d given up looking for work. Not surprising, given that one quarter of all young workers are unemployed or underemployed.

Ontario has been hardest hit by the recession, and has been slow to recover. If it had the employment rate it had before the recession, there would be an additional 140,000 jobs for Ontario workers aged 15 to 64.

Even Alberta is missing jobs. A pre-recession employment rate in Alberta would mean 93,800 more jobs. This is especially troubling because tens of thousands workers from across Canada moved to Alberta for work, and it’s widely anticipated that the economy there is just going to get worse.

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“The federal government has the opportunity right now to invest in a better future for all Canadians. Ottawa’s single-minded obsession with austerity and mantra that the labour market will eventually recover is simply prolonging the economic hardship of working Canadians. But to turn this ship around, we need to reinvest in job creation and skills training,” he said.

The employment picture to close out 2014 was reflective of much of the rest of the year. Statistics Canada’s release of its Labour Force Survey for December 2014 showed there were just over 1.27 million unemployed Canadians in December, and the overall unemployment remained at 6.6%.

“The government’s laissez-faire attitude in 2014 now leaves us lagging behind the American economic and job market recovery, demonstrating once again that Canada needs a new approach to boosting job growth. Quite simply there needs to be a shift in priorities. New spending on infrastructure, reversing federal job cuts, investing in social programs – these are the elements of a sustained job growth strategy,” he added.

“The shake-out coming in the oil and gas sector should serve as a wake-up call to this complacent government,” warned Yussuff.  But he also stressed the opportunities present in the Canadian dollar’s return to Earth and the prospects for a revitalized manufacturing sector.

Quick Analysis from CLC Senior Economist Angella MacEwen

Overall job growth and quality were disappointing in 2014. The number of jobs grew by only 1%, or 186,000 – far below the population growth of 380,000. The average annual employment rate for 2014 fell compared to 2013, and remains well below 2008 levels. The total actual hours worked in 2014 was lower than 2013, despite the increase in the number of positions. Since 2008, the total actual hours worked has grown at only half the rate of total job growth.

Compared to last December there was little change in employment in the natural resources sector, while employment in construction was up by 68,000 and employment in manufacturing was down by just over 11,000. Accommodation and food services employment fell compared to November, but was still up by 38,000 compared to last December. Also notable, the professional, scientific, and technical services sector lost 35,000 jobs compared to last December.

Compared to last December both Nova Scotia and Ontario saw their unemployment rate fall by nearly a full percentage point. In Nova Scotia this was completely due to a fall in labour force participation, and while Ontario added 80,000 jobs, their participation rate fell from 61.7% to 61%, indicating deeper labour market weakness in both provinces.

While it is too early to see the fallout from falling oil prices, there will likely be some impact across the country as industries adapt.

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“Laissez-faire isn’t working,” says CLC President Hassan Yussuff. “Month after month we see the same disappointing evidence from Statistics Canada. Private sector employment isn’t keeping up with labour force growth. Over the past year, part-time jobs grew at triple the rate of full-time jobs. And young people continue to struggle with an unemployment rate that’s double the national rate and a part‑time rate approaching 50%.”

According to Yussuff, the problem is a lack of leadership from the federal government. There is no vision of an economy that provides people with the opportunity to work productively, to earn a living and to build a future. Canadians, he says, can do better – they want to do better.

“We need a real economic action plan, one that’s about creating jobs and giving young people the means to build a future,” says Yussuff.

Quick analysis from Senior Economist Angella MacEwen

Employment was little changed in November, as the number of jobs lost (10,700) falls well within the standard error of the change in employment (28,900).

Year over year the number of jobs added to the labour market amounted to less than 1% of total employment, and were not enough to keep up with population growth. The number of self-employed workers, a notoriously precarious sector, grew at double the rate of employees. The number of temporary positions grew at triple the rate of permanent positions. Finally, part-time jobs grew at three times the rate of full-time jobs, contributing to stagnation in the total number of hours worked over the past year.

The bulk of employment gains have come from two sectors over the past year: Health Care and Social Assistance (62,300), and Accommodation and Food Services (58,300). The average weekly wage for Health Care and Social Assistance was $857.81, and for Accommodation and Food
Services it is $423.16.

So while some of Canada’s job growth appears to be in middle income stable jobs, many are in low wage, part time, and less secure positions.

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“We have just seen the biggest loss of private-sector jobs over a single month in the history of the Labour Force Survey, yet the federal government seems to be more interested in forcing companies to offer us better cell phone plans, than helping employers create the full-time jobs people need to support their families and build a future,” says Hassan Yussuff.

The more disturbing trend, according to Yussuff, is the disconnect between growth in the population of workers and the quality of jobs they have to choose from. Over the past year, Canada’s labour force grew by almost 61,000 people, but our labour market was only able to provide them with 15,000 full-time jobs. All the rest were part-time.

“The jobs market is stuck in the mud and appears to be sinking. Canadians need to demand that the federal government deliver a national jobs strategy and begin to invest in the creation of good, full-time jobs – now,” says Yussuff.

Quick Analysis from CLC Senior Economist Angella MacEwen

These job numbers are dismal. A loss of 110,000 private sector jobs was mostly compensated for by an increase of 87,000 self-employed workers and 14,000 public sector workers. The unemployment rate was unchanged at 7%. The number of unemployed workers fell to 1.34 million from 1.35 million, as fewer young workers and women over 25 were participating in the labour market.

Over the past year, 4 out of 5 net new jobs were part time, and for core age workers (25-54) all net new jobs were part time. A similar pattern emerges when examining temporary employment. Three-quarters of net new jobs since last August were temporary, and for core age workers all net new jobs were temporary.

The underemployment rate for young workers was unchanged from last August at 14.5%, and the underemployment rate for core age workers (25-54) rose to 12.1% this August (compared to 11.8% in August 2013 and 2012). This was mostly due to an increase in the number of workers who worked part-time but sought more hours of work.

In the Northwest Territories, employment fell by 1,300 jobs over last August, matching a decline in the labour force, so the unemployment rate remained steady at 7.9%. In the Yukon a gain of 1,000 jobs over last August resulted in a fall in the unemployment rate from 4.8% to 2.3%. In Nunavut a loss of 600 jobs over last August resulted in a rise in the unemployment rate to 15.3%.

In August the unemployment rate for persons with landed immigrant status was 8.7% ― 2 percentage points higher than that for Canadian born workers. Even more worrisome, the unemployment rate for recent immigrants (less than 5 years) jumped to 14.5% this August, an increase of 2.7 percentage points compared to last August, and the highest rate in the month of August since 2010.

The Canadian Labour Congress, the national voice of the labour movement, represents 3.3 million Canadian workers. The CLC brings together Canada’s national and international unions along with the provincial and territorial federations of labour and 111 district labour councils

Web site: www.canadianlabour.ca.  Follow us on Twitter @CanadianLabour

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Our statement from last week remains unchanged. The president of the Canadian Labour Congress continues to call for a national jobs strategy and leadership from government.

“The jobs market is stuck. It needs help to get back on the road to economic recovery. But our governments continue to let the tires spin and tell us we’re not stuck as deeply as the Americans. They do nothing, as more workers give up hope,” says Hassan Yussuff.

“It’s particularly unfair to young Canadians who can’t find the full-time work they need to get their lives started and build for the future – Canada’s future. The longer we wait while governments refuse to act, the longer Canada spins its wheels without leadership and a clear plan to get out of the mud and back on the road, the further we let the next generation fall behind,” says Yussuff.

Quick Analysis from CLC Senior Economist Angella MacEwen

The volatility in monthly data from the Labour Force Survey highlights the importance of taking a longer term view and analysing trends rather than monthly ups and downs. For example, even though the labour force added 42,000 jobs in July, several trends point to continued weakness in the Canadian labour market.

Compared to last July the participation rate of core age workers (25-54) has fallen by 0.6 percentage points, and there are 14,500 more unemployed workers in that age group. Full time work among this age group has fallen by nearly 60,000 jobs, with an increase of 37,300 part-time jobs.

Extending our analysis to 15-64 year old workers shows a year-over-year increase of nearly 100,000 jobs – all of them part-time. The number of unemployed workers has remained stubbornly above 1.3 million as the number of jobs added have failed to keep up with population growth.

The number of underemployed workers in Canada is virtually unchanged from the past two Julys. There were 3 million underemployed workers this July, compared to 3 million for July 2013 and 2012. One million of these were young workers between the ages of 15 and 24. The overall underemployment rate was 15.1%, and 29.3% for young workers.

The Canadian Labour Congress, the national voice of the labour movement, represents 3.3 million Canadian workers. The CLC brings together Canada’s national and international unions along with the provincial and territorial federations of labour and 111 district labour councils.

Web site: www.canadianlabour.ca
Follow us on Twitter @CanadianLabour

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“The truth is that the jobs recovery has stalled,” said Yussuff. “Our governments talk about investing in jobs, but they haven’t taken constructive action. It’s time for governments to provide deliberate labour market strategies that will allow people to find full-time, meaningful work.”

Yussuff was commenting on the release by Statistics Canada of its Labour Force Survey for June 2014. There were 1,369,500 unemployed Canadians in June, and the overall unemployment rate inched higher to 7.1%. In the 15-to-24 age group, unemployment stood at 13.4%, and 48.3% of young workers are employed part-time.

The rate of underemployment rate was much higher at 14.3% overall and 28.8% for young workers.  “There are more workers underemployed than there are unemployed in our country,” Yussuff says. “That is an indictment of how the economy is failing Canadians. Too many remain at the margins of our labour force and our society.”

Quick Analysis from CLC Senior Economist Angella MacEwen

Economists were surprised this month that Canadian labour market shed jobs in June, rather than the modest pick-up they were expecting. The unemployment rate rose to 7.1% as more people were looking for work. Adjusted to match US methods, the Canadian unemployment rate is now equal to the US unemployment rate, as the job market south of the border has seen solid growth over the past year while the Canadian job market has stalled.

Year over year employment rose by 72,000, or 0.4% – the lowest year-over-year growth rate in four years. Breaking this down by age, we see that net job growth among core age workers (15-64) actually declined over this period.  All net job growth in this period was among workers over 65. Two thirds of year-over-year job growth has been concentrated in one industry – health care and social assistance.

The Canadian Labour Congress, the national voice of the labour movement, represents 3.3 million Canadian workers. The CLC brings together Canada’s national and international unions along with the provincial and territorial federations of labour and 111 district labour councils

Web site: www.canadianlabour.ca
Follow us on Twitter @CanadianLabour

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“Young people people want to work and contribute. They want to build lives for themselves but too often they can’t find work, or they are stuck in short term, part-time, and poorly paid jobs. Governments have let them down by failing to act. We owe them better than this.”

Yussuff was responding to the release by Statistics Canada of its Labour Force Survey for May 2014. The official unemployment rate was 7.0% in May and the rate of underemployment was 14.7%. In the 15-to-24 age group, 13.3% of workers were unemployed and 30.4% underemployed. The underemployed can include part-time workers who want to work full-time, or people who have given up searching altogether. Neither group would be described by Statistics Canada as being unemployed, but they are underemployed.

Yussuff also pointed to Statistics Canada’s 2011 census data, which showed that 42.3 % of young adults aged 20 to 29 lived at home, compared to 27 per cent in 1981, noting that their having to live at home will have an impact on how much their parents can save for their own retirement.

According to the Conference Board of Canada, employers in Canada spent only $688 per employee on training in 2011, while U.S employers spent on average, $1,071 per employee – approximately $400 more per employee per year than in Canada.

“Our governments talk about investing in jobs, but the fact is that Canada has fallen far behind. It’s time to walk the talk and for governments to provide deliberate labour market strategies that will allow people to find full-time, meaningful work,” said Yussuff.

Quick Analysis from CLC Senior Economist Angella MacEwen

Statistics Canada reported a loss of 29,000 full-time jobs in May, and a gain of 55,000 part-time jobs. Over the past 12 months, all job growth has been in part-time work, with a net gain of 112,000 part-time jobs. This May more than 1 million workers in Canada were working part-time jobs but wanted full-time work. This is the highest number of underemployed part-time workers in May since Statistics Canada began collecting this information in 1997.

Job growth continues to be centred in the private sector, with year-over-year declines in the public sector and among self-employed workers. Compared to last May, there were 6,000 fewer workers in educational services and 23,000 fewer workers in public administration. The construction industry has seen the largest year-over-year decline in employment, with a loss of 39,000 jobs. Job growth was strongest in the health care and social assistance sector.

The unemployment rate for persons who have been landed immigrants for 5 years or less was 12.4% in May, slightly higher than May 2013 when it was 12.1%. The unemployment rate for newcomers who have been landed immigrants for 5-10 years was 8.7%, an improvement from 9.9% in May 2013. This is still markedly higher than the 7.0% unemployment rate for Canadian-born persons, indicating a need for services to assist recent newcomers in the Canadian job market.

The Canadian Labour Congress, the national voice of the labour movement, represents 3.3 million Canadian workers. The CLC brings together Canada’s national and international unions along with the provincial and territorial federations of labour and 111 district labour councils

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The Labour Force Survey for April 2014 released by statistics Canada showed the official unemployment rate was 6.9% in April, a number that shows no improvement over March.  What’s worse, the CLC says the rate of underemployment remained unacceptably high at 14.8%.

Canada’s 1.33 million unemployed can find no hope in these latest numbers and this government not only has no clue what to do, it doesn’t even have a clue what the real job vacancy rate is, the CLC says.

And the Congress echoed Auditor General Michael Ferguson’s call this week for better jobs data, saying that making huge decisions on Employment Insurance, training and economic policy on faulty, inadequate statistics has already been disastrous for Canada’s unemployed.

This is a very serious problem – the federal government doesn’t know how many job vacancies there are in Canada yet it is letting employers import over 330,000 migrant workers under the Temporary Foreign Worker Program, according to the CLC.

Statistics Canada job market and other figures demonstrate that Canada has too many unemployed, too many migrant workers, too little accurate information and no government plan to fix any of it. That is a sad commentary on a government that likes to claim it knows what it’s doing but is actually in the dark.

Quick Analysis from CLC Senior Economist Angella MacEwen

There were 29,000 fewer jobs in April 2014 compared to the month before. The unemployment rate remained at 6.9% as fewer workers were participating in the labour force. Quebec suffered the largest job losses and Ontario gained a small number of jobs. All of the job losses were among employees, as the number of self-employed workers increased between March and April 2014. All of the jobs lost this month were full-time jobs. Year over year there has been a disproportionate increase in part-time employment, as half of the jobs added since last April were part-time.

The only group to make employment gains year over year (compared to April 2013) were workers over 55, mostly women. This is mostly due to population aging as employed workers move into the older age group. Young workers, and men and women 25-54 saw virtually no employment gains over last April.

The underemployment rate for April 2014 was 14.8%, and 28.8% for young workers between 15 and 24.

The Canadian Labour Congress, the national voice of the labour movement, represents 3.3 million Canadian workers. The CLC brings together Canada’s national and international unions along with the provincial and territorial federations of labour and 111 district labour councils.

Web site: www.canadianlabour.ca
Follow us on Twitter @CanadianLabour

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Georgetti was responding to the release by Statistics Canada of its Labour Force Survey for March 2014. The official unemployment rate was 6.9% in March but the rate of underemployment rate was much higher at 15.1%.  “There are at least as many people underemployed as there are unemployed in our country,” Georgetti says. “That is an indictment of how the economy is failing Canadians, especially younger Canadians. Too often, they remain at the margins of our labour force and our society.”

Underemployment can be defined as the unmet need for paid employment. That can include part-time workers who want to work full-time, or people who have given up searching altogether. Neither group would be described by Statistics Canada as being unemployed, but they are underemployed.

Georgetti says that 13.1% of men and 15.8% of women were underemployed in 2013. In the 15-to-24 page group, 27.8% of workers were underemployed. “Some politicians keep saying that we have replaced all of the jobs lost in the Great Recession following 2008. That is not true when you account for the growth in our labour force, and there is a real problem when you look at the kinds of jobs we are creating. There are far too many part-time, precarious and poorly-paid jobs out there.”

Quick Analysis from CLC Senior Economist Angella MacEwen

Statistics Canada reported 42,900 net new jobs in March 2014. Gains were mostly in the public sector, specifically health and social assistance. Agriculture lost 12,000 jobs and manufacturing lost 9,000 in March. However manufacturing is up over last March by 16,000, a growth rate of 0.9%, close to the average job growth rate of 1.1%.

This month’s news shows a welcome gain in the number of Canadians employed, but it is important to note that the average monthly job gain over the past 12 months is still low, at 15,800. As well, three quarters of the gains for March were part-time, and over the past 12 months one in three new jobs was part time. In March, Quebec gained 15,000 jobs during a period that coincided with an election call.

While young workers added 32,500 jobs in March, this didn’t keep up with the 35,400 new young workers who entered the labour force last month. The unemployment rate for young workers remained static at 13.6, and 47.7% of young workers were employed part-time.

The Canadian Labour Congress, the national voice of the labour movement, represents 3.3 million Canadian workers. The CLC brings together Canada’s national and international unions along with the provincial and territorial federations of labour and 111 district labour councils.

Web site: www.canadianlabour.ca
Follow us on Twitter @CanadianLabour

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CLC President Ken Georgetti was responding to the release by Statistics Canada of its labour force survey for January 2014. “I am very concerned about the number and quality of jobs that have been created in Canada since the Great Recession and the news is not good,” Georgetti says. “The Finance Minister and other government keep trying to claim they have kept up in creating jobs but in fact the record over the years is quite dismal. The skills of Canadian workers are being under-utilized.”

Statistics Canada estimates that there were 1,333,200 Canadians unemployed in January but Georgetti says those numbers do not tell the real story. “You have to add to that the number of people working in poorly-paid, part-time jobs who would like to be employed full-time. Add also the number of people who have become so discouraged that they have given up looking for work. When you do that, you find that there were close to 2.8 million Canadians who were not able to participate fully in the workforce in 2013. This is a great waste of talent and skill.”

The jobs that have been recovered since the recession of 2008-09 are disproportionately part-time and precarious. Part-time jobs grew at twice the rate of full-time jobs, and account for 40% of the job growth between 2008 and 2013. Part-time positions make up 19% of all jobs. All of the growth in part-time jobs was involuntary, where job seekers are looking for full-time work but can only find part-time hours. Over 20% of all jobs are low wage, and the minimum wage hasn’t kept pace with inflation in most provinces. The ranks of the working poor in Canada are increasing.

Georgetti says that the number of people who can’t find secure work has increased during the years that coincide with the government’s tax giveaways to corporations. “Good, family-supporting jobs are the key to Canada’s economic success and corporate tax cuts aren’t delivering. In fact, corporate tax cuts have delivered nothing, except windfall profits to corporations that haven’t benefited Canadians who paid for them.”

Georgetti adds, “I get letters all the time from people who can’t find decent work and from parents whose kids can’t find work at all. But much of this is not reflected in the official unemployment statistics every month. That’s not fair to the workers and their families.”

Quick Analysis from CLC Chief Economist Sylvain Schetagne

The labour market is weaker than one might think from today’s job numbers. After a drop of 46,000 jobs in December 2013, employment rose by 29,400 in January 2014, so that the job losses in December were not recovered in January. The unemployment rate declined to 7.0%, in part because the number of Canadians active in the labour market has declined by 20,900. Many discouraged people left the job market after being unable to find decent jobs. Almost all of the job growth in January 2014 took place among the self-employed, with an addition of 28,300 jobs. Underemployment, which includes unemployed workers, those unable to secure full-time work and those who are discouraged from looking, has not declined significantly in the past year. In 2013, 14.4%, or 2.8 million workers were unemployed or underemployed. In fact, the number of jobs created in the last year was not enough to absorb population growth. Both the percentage of the working age population with a job and the percentage of the population active in the labour market declined by 0.3% in the last 12 months. Finally, government austerity measures are hurting job creation. There were 16,000 fewer jobs in public administration in January 2014, and a loss of 57,500 (-5.9%) in the last twelve months.

The Canadian Labour Congress, the national voice of the labour movement, represents 3.3 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
Follow us on Twitter @CanadianLabour

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Looking at today’s release of year-end employment statistics, Ken Georgetti’s words are “discouraged” and “underemployed”; if he could pick a third it would be “indifference” to describe the federal government’s reaction.

Disappointing as the overall numbers were – employment gains in 2013 amounted to just 0.6% and employment growth averaged 8,500 per month in 2013, compared with 25,900 in 2012 – Georgetti says it’s really just the tip of the iceberg.

While the official unemployment rate ranged from a low of 6.9% in November to a high of 7.2% in December, it only counted those who were actively seeking work. The number of unemployed who gave up looking or couldn’t get enough hours – which the Canadian Labour Congress calculates at about 14% – remained hidden from view. The official numbers also left out people whose skills were not being used because they settled for any job they could find to pay the bills and put food on the table.

“All jobs aren’t the same. Decision makers who point to the official numbers and pat themselves on the back aren’t looking at the whole picture. As a result, little to nothing is being done to deal with the real problems of underemployment and the growing discouragement and disillusion among workers, young workers especially,” says Georgetti.

Over 2013, 80% of the new jobs created were part-time and the number of Canadians who work part-time reached a high of 19.1% (December). Youth unemployment ranged from 12.9% (September) to 14% (December), a rate double the national average.

“I get letters from parents whose kids have graduated with large student debts and can’t find work. I get letters from people who have been looking for full-time work but can’t find it. MPs and cabinet ministers get these letters too, I’m sure. Yet, this reality gets left out of the official unemployment statistics every month. That’s not fair to the workers and families who are getting left behind as a result,” says Georgetti.

Quick Analysis from CLC Senior Economist Angella MacEwen

The labour market added 102,000 jobs over 2013, or only 8,500 per month. This falls far short of the job creation rate of 2012, which was 25,400 per month. Over the year the labour force grew by 126,300 people, meaning that job growth did not keep up with the number of job seekers. Job growth remained confined to workers over 55, while young workers and men 25-54 saw job losses in 2013.

80% of the jobs added in 2013 were part-time jobs, reversing the trend of full-time employment growth seen in 2012. The number of part-time workers who wanted more hours grew in 2013 as well, as nearly 914,000 workers couldn’t get enough hours. Combined with the nearly 470,000 people who were no longer actively looking for work, but said they wanted a job, un(der)employment stood at 14% in 2013 – double the headline unemployment rate of 7.1%.

The unemployment rate for landed immigrants remained higher than the national average, at 8.1% for the year.

The Canadian Labour Congress, the national voice of the labour movement, represents 3.3 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
Follow us on Twitter @CanadianLabour

The post 2013 in two words: Discouraged and Underemployed: CLC responds to year-end labour force statistics appeared first on Canadian Labour Congress.

“The official unemployment rate is stuck near the 7% level but that’s not the half of it,” says Ken Georgetti. “Underemployed workers and those who have given up looking now exceed the numbers who are officially unemployed. In the past 12 months, 40% of the new jobs have been part-time, and part-time workers now represent 19% of the total workforce. That is a shocking indictment of our record in creating jobs in Canada.”

Georgetti was commenting on the release by Statistics Canada of its Labour Force Survey for November 2013. “I continue to get letters and emails from people who have had no jobs for months, or who have precarious jobs. Some of the people who contact me are parents who are worried sick because their kids can’t find decent work. It’s really disturbing.”

According to Statistics Canada, there were 1,315,800 unemployed Canadians in November, and the unemployment rate is 6.9%. In the 15-to-24 age group, official unemployment stands at 13.4%. Fully 47.6% of young workers were employed only part-time in November.

“The Finance Minister keeps saying that we have replaced all of the jobs lost in the Great Recession of 2008-09. He does not mention that the size of the workforce has grown since 2008, and so we have really not caught up,” Georgetti says, “And the jobs being created, for the most part, are not full-time, family-supporting jobs. It is high time that the government stopped talking about austerity and started talking about helping to create good jobs.”

Quick Analysis from CLC Senior Economist Angella MacEwen

The labour market added 22,000 jobs in November, nearly all of them part-time and   self-employed workers. The growth in private sector jobs offset losses in the public sector in November. In the past 12 months, part-time work has made up a disproportionate percentage of job growth, representing nearly 40% of new jobs and  19% of the total workforce.

Average employment growth in 2013, at 13,400 per month, has been markedly lower than the average of 25,400 jobs per month in 2012. Despite all of this, the unemployment rate has fallen in recent months, largely because a smaller proportion of Canadians are participating in the labour market. The labour force participation rate fell from 66.8% in November 2012 to 66.4% in November 2013.

Young workers in particular are struggling to enter the labour market, and more are falling out of the labour force. A broader measure of underemployment measuring involuntary part-time and discouraged workers puts unemployment for young workers at 17.2%.

The Canadian Labour Congress, the national voice of the labour movement, represents 3.3 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
Follow us on Twitter @CanadianLabour

The post Part-time jobs, discouraged workers the new norm: CLC responds to November Statistics Canada Labour Force Survey appeared first on Canadian Labour Congress.

Ken Georgetti was commenting on the release by Statistics Canada of its Labour Force Survey for October 2013. “I get letters almost every month from people who have been looking for full-time work and and can’t find it,” Georgetti says. “I get other letters from parents whose kids have graduated from college and university with student debt and can’t find work. Often those young people are forced to live in their parents’ basements. It’s heart-breaking.”

According to Statistics Canada, there were 1,325,000 unemployed Canadians in October, the same number as in September, and the overall unemployment rate remained at 6.9%. In the 15-to-24 age group, official unemployment rose to 13.4%  as more young people entered the job market. In September, the unemployment rate among young people was 12.9%. Fully 47.8% of young workers were employed only part-time in October, the same percentage as in September.

“We have a problem with persistent and high unemployment but the Finance Minister insists that we have to pursue austerity and cutbacks,” Georgetti says. “This is causing untold hardship to individuals and families and it also means that our economy is producing at far below its potential.”

Georgetti says Ottawa has a responsibility to assist in job creation and training. “We have more than a million unemployed people who want to work and contribute to their own and our nation’s prosperity.”

Quick Analysis from CLC Senior Economist Angella MacEwen

There was literally no change in the number of unemployed or the unemployment rate in October. The small gain of 13,200 jobs exactly matched the growth in the labour force, leaving the unemployment rate at 6.9%. Most of the jobs gains in October were in the public sector, driven by the health care sector. The youth unemployment rate rose to 13.4% as more young people entered the job market.

Looking at a longer term change in industrial sectors, manufacturing has lost over 50,000 jobs since October 2009, and construction has gained over 150,000 during the same time period. The largest job gains over this period have been in health care and social assistance, with the addition of nearly 240,000 jobs.

While the unemployment rate stays at 6.9%, a broader measure of unemployment shows more weakness in the labour market. The under-utilization rate has been rising. That measure includes people working part time on an involuntary basis and those who have given up the search for work. In the three Octobers prior to 2009, labour under-utilization measured an average of 11%, and it rose to 14.5% in October 2009 (not seasonally adjusted). For the past three Octobers, this measure has been at or near 13%, recovering less than half of the losses from the recession. There remains significant room for fiscal stimulus to improve labour market conditions.

The unemployment rate for newcomers with landed immigrant status is 8%, which is higher than the average rate. Persons who have received landed immigrant status more recently — within the past five years — have an even higher unemployment rate at 11.2%. The unemployment rate for young workers born in Canada was 12.5% , compared to 17.4% for young workers who have been granted landed immigrant status.

The Canadian Labour Congress, the national voice of the labour movement, represents 3.3 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
Follow us on Twitter @CanadianLabour

Contacts:  Angella MacEwen, CLC Senior Economist, 613-526-7412.

The post Canadian workers being under-utilized: Ken Georgetti responds to Statistics Canada Labour Force Survey appeared first on Canadian Labour Congress.

“We all know that seasonal work is a fact of life in Canada, not only in fisheries and agriculture but among people who work for provinces, cities, towns and municipalities,” says Ken Georgetti. “Let’s stop denying this and have an open conversation about how best to deal with it.”

Georgetti was commenting on the release by Statistics Canada of its Labour Force Survey for February 2013. There were 1,332,600 unemployed Canadians in February, and the unemployment rate was 7.0%. In the 15 to 24 age group, unemployment stood at 13.6%, and 47.8% of young workers are employed only part-time.

The government forced legislation through parliament in 2012 that makes it more difficult for seasonal unemployed workers to receive Employment Insurance benefits. “The real problem is that we have sustained high unemployment in Canada and we have a sluggish economy with little or no economic growth,” Georgetti says. “It’s time to stop blaming unemployed workers for that and to give them a hand up instead.”

Georgetti says that Canada’s future prosperity depends on a skilled and educated workforce. “Unfortunately, we fall well below the OECD norm in skills training for employees and in employer investment in skills training generally.”

The CLC is calling for a national skills development strategy in cooperation with provinces, cities and municipalities to respond to a growing skills gap, an ageing workforce, and the specific needs of groups such as Aboriginals, recent immigrants, and youth. Georgetti adds, “If we do this and get it right, it will translate into enormous economic and productivity gains, and ensure real equality of opportunity.”

Quick Analysis from CLC Senior Economist Angella MacEwen

Employment increased by just over 50,000 in February, but that wasn’t enough to keep up with the growth in the labour market — there were still an additional 10,000 persons officially unemployed. Growth was concentrated in the professional, scientific and technical, and accommodation and food services industries. Manufacturing employment declined by 25,600. The real unemployment rate stands at 10.8%, and for youth aged 15 to 24 it’s 19.8%. The increase in full time work was mainly for men over 55, while youth saw an increase in part-time work.

The Canadian Labour Congress, the national voice of the labour movement, represents 3.3 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 Follow us on Twitter @CanadianLabour

Contacts:  Angella MacEwen, CLC Senior Economist, 613-526-7412

The post CLC says seasonal unemployment a fact of life: Georgetti calls for better training programs appeared first on Canadian Labour Congress.

“The number of new jobs is not keeping up with population growth, and as a result too many people are being forced into precarious work and highly unstable self-employment,” says CLC president Ken Georgetti. “That is causing hardship and anxiety for Canadians and especially for younger families.”

Georgetti was commenting on the release by Statistics Canada of its Labour Force Survey for September 2013. There were 1,325,000 unemployed Canadians in September and the overall unemployment rate was 6.9%. The drop in the unemployment rate was entirely due to 21,000 young workers exiting the labour market. In the 15-to-24 age group, official unemployment stood at 12.9%, a decrease from 14.1% in August. Fully 47.8% of young workers were employed part-time in September, compared to 47.4% in August.

We are told by the Finance Minister that we’re doing well in job creation,” says Georgetti. “If that is so, then why is today’s unemployment rate 6.9%, when in September 2008 it was at 6.2%?”

Georgetti adds, “This government was reluctant to spend to stimulate the economy in the face of the Great Recession in 2008-09, and then they moved too quickly to replace stimulus with austerity. The result has been poor job growth and lingering high unemployment which has caused a lot of difficulty for too many Canadians.”

Georgetti says Ottawa should use its Throne Speech this month to signal an intention to assist in job creation and training. “We badly need to improve or replace physical infrastructure such as roads and bridges. We could also create jobs if we had programs to retrofit houses and offices to make them more energy efficient. We should be investing in good quality social services. We have unemployed people who would gladly take these jobs.”

Quick Analysis from CLC Senior Economist Angella MacEwen

In September there was a big drop in the number of young workers looking for work, as over 21,000 of them exited the labour market, and another 22,000 were engaged in full-time employment. As a result the overall unemployment rate fell, even though the rate for workers over 25 remained steady.

Even though 21,000 young workers are no longer considered unemployed, in September 2013, 185,000 of them wanted work, but they were no longer working. That’s an increase of 20,000 over September 2012.

There are regular variations in the month to month data, so it is critical to look at long term trends in the Labour Force Survey data. Since September 2008 the Canadian labour force has grown by 818,000, but the Canadian economy only added 618,000 jobs over the same time period. As a result, the employment rate, or the percentage of working age adults in employment, has not improved significantly since early 2009 when it fell below 62%. Since September 2008, 40% of new jobs created were temporary employment, mostly term or contract positions. The proportion of part-time workers who want full time work increased from 20% in September 2008, to 26% in September 2013.

The Canadian Labour Congress, the national voice of the labour movement, represents 3.3 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
Follow us on Twitter @CanadianLabour

The post Job growth lags five years after the recession: Georgetti says jobs not keeping up with population growth appeared first on Canadian Labour Congress.

Ken Georgetti was commenting on the release by Statistics Canada of its Labour Force Survey for August 2013. There were 1,362,000 unemployed Canadians in August and the overall unemployment rate was 7.1%. In the 15-to-24 age group, official unemployment stood at 14.1%, an increase from 13.9% in July. Fully 48.3% of young workers were employed part-time, up from 47.9% in July.

“Youth unemployment was too high back in July and it got even higher in August,” says Georgetti, “Most of the new jobs we saw in the entire labour force in August were part-time. People cannot build lives and support families on part-time work.”

Georgetti is calling governments and employers to invest in job creation and training. “There is a crying need for physical infrastructure and good quality social services in Canada and we have unemployed people who would be only too happy to  be working for the country’s benefit.”

He says that Ottawa has provided billions in corporate tax giveaways in the hope  that companies would invest in job creation and training. “Those companies are  sitting on the cash instead of investing it in job creation and training. They must  put that money to work in the economy.”

Georgetti adds that the federal government should set a new direction for assisting in job creation when it delivers its Speech from the Throne in October.

Quick Analysis from CLC Senior Economist Angella MacEwen

There were 1.36 million unemployed workers in Canada in August 2013, and the unemployment rate was 7.1%. Small gains in employment in August offset losses in July, but the gains were concentrated in part-time work and self-employment. Gains in health care and social assistance, information, culture, and recreation, and accommodation and food services offset losses in other areas such as educational services, finance, insurance, real estate and leasing, and other services.

The real unemployment rate for young workers aged 15-24, was 19.1% in August, similar to the past three years in August and five percentage points higher than the pre-recession rate. In comparison, the real unemployment rate for workers over 25 is 8.5%, which is one percentage point higher than the pre-recession rate.

The increase in part time jobs was concentrated among young workers and women over 55. Involuntary part-time remains high at 30% among part-time workers who would like full-time work. This is compared to 25% pre-recession. The part-time rate for young workers rose to 48.3% this August, a full percentage point higher than  in  August 2012. The increase in part-time work among young workers explains why the average hours worked by students this summer fell to 23.7 per week, the first decline in hours worked since 2009.

While there were 246,100 more jobs August 2013 compared to the previous August, the labour force grew by 237,500 over the same period, so unemployment declined by a net of only 8,700 persons.

The Canadian Labour Congress, the national voice of the labour movement, represents 3.3 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.

The post Youth unemployment, quality of jobs a big concern: Georgetti comments on August job numbers appeared first on Canadian Labour Congress.

“Our economy lost 39,400 jobs in July and the unemployment rate is up. This is a wakeup call and we want governments and private sector employers to invest in job creation and training. 

Georgetti was commenting on the release by Statistics Canada of its Labour Force Survey for July 2013. There were 1,380,300 unemployed Canadians in July and the overall unemployment rate was 7.2%. In the 15-to-24 age group, unemployment stood at 13.9%, and 47.9% of young workers are employed only part-time.

Georgetti says that the federal government should assist in creating good jobs by participating in a long-term program to replace and extend Canada’s ageing physical and social infrastructure in roads, rapid transit and child care. “We have cement chunks falling off of bridges and tractors falling into city sinkholes. There is a lot to be done and the government should get at it.”

He adds that Ottawa has provided billions in corporate tax giveaways in the expectation that companies would invest in job creation and training. “Our research has shown that those companies are generally sitting on the cash instead of investing it in job creation and training. It’s high time for them to put that money to  work in the economy.” 

Quick Analysis from CLC Chief Economist Sylvain Schetagne

Government austerity measures and job cuts hurt employment growth in Canada in July 2013. The number of people working decreased significantly by 39,400 in July 2013, and another 14,200 simply quit looking for work and left the labour market. As a result, the unemployment rate rose 0.1% to 7.2% and the percentage of the population working decreased (from 61.9% to 61.7%). Jobs were lost mainly in the public sector, with 74,000 fewer jobs in this sector as a result of declines in health care and social assistance (-47,000) and public administration (-22,900). Growth did occur in the private sector but the number of jobs in manufacturing remains lower than a year ago in July (-59,500). Young workers were hard hit in July. Compared to the previous month, there was decrease of 45,600 jobs among workers aged 15-24, while another 48,800 left the labour market. As a result, their unemployment rate is 13.9%, up from 0.1% from last month.

The Canadian Labour Congress, the national voice of the labour movement, represents 3.3 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.

The post Canada needs a jobs and training strategy: Georgetti comments on disappointing July job numbers appeared first on Canadian Labour Congress.

Georgetti was commenting on the release by Statistics Canada of its Labour Force Survey for May 2013. There were 1,347,600 unemployed Canadians in May, and the overall unemployment rate was 7.1%. In the 15-to-24 age group, unemployment stood at 13.6%, and 46.1% of young workers are employed only part-time. Of particular note, Canada has lost nearly 100,000 manufacturing jobs over the past twelve months.

“We continue to have well over one million unemployed Canadians, and there are real and enduring problems with youth unemployment,” Georgetti says. “The lives and futures of real people are at stake, and we should all be pulling together in the search for answers.”

Georgetti makes specific reference to consultations being held around the government’s recently announced Canada Jobs Grant and changes to the TFWP. “These meetings have been by invitation only, and there was either no labour representation or severely limited representation,” he says.

Georgetti adds, “The government’s failure to consult and listen to all stakeholders when developing policy and legislation has led to a deep mistrust and in some cases to a backlash. Regrettably the concerns we expressed and outcomes we predicted are coming to fruition. They are to be found in skills shortages, underemployment, continuing high unemployment, and fewer unemployed Canadians qualifying for EI benefits.”

Quick Analysis from CLC Senior Economist Angella MacEwen

The gain of 95,000 jobs in May was the largest one month gain since August 2002. These jobs were mainly private sector, full-time jobs, with half of the gains coming from the construction sector. This is certainly much needed good news for Canadian workers. However, there was an increase of 80,000 jobs seekers in May, which meant the unemployment rate barely moved despite the huge gain in jobs.

The manufacturing sector declined by another 14,200 positions in May, down nearly 100,000 positions from May 2012. And the proportion of the population that is employed remains at 62%, representing a gap of over 400,000 jobs compared to the pre-recession employment rate of 63.5%.

The Canadian Labour Congress, the national voice of the labour movement, represents 3.3 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.

The post Georgetti comments on Statistics Canada job numbers: Says government fails to consult labour on job plans appeared first on Canadian Labour Congress.

Georgetti was commenting on the release by Statistics Canada of its Labour Force Survey for May 2013. There were 1,347,600 unemployed Canadians in May, and the overall unemployment rate was 7.1%. In the 15-to-24 age group, unemployment stood at 13.6%, and 46.1% of young workers are employed only part-time. Of particular note, Canada has lost nearly 100,000 manufacturing jobs over the past twelve months.

“We continue to have well over one million unemployed Canadians, and there are real and enduring problems with youth unemployment,” Georgetti says. “The lives and futures of real people are at stake, and we should all be pulling together in the search for answers.”

Georgetti makes specific reference to consultations being held around the government’s recently announced Canada Jobs Grant and changes to the TFWP. “These meetings have been by invitation only, and there was either no labour representation or severely limited representation,” he says.

Georgetti adds, “The government’s failure to consult and listen to all stakeholders when developing policy and legislation has led to a deep mistrust and in some cases to a backlash. Regrettably the concerns we expressed and outcomes we predicted are coming to fruition. They are to be found in skills shortages, underemployment, continuing high unemployment, and fewer unemployed Canadians qualifying for EI benefits.”

Quick Analysis from CLC Senior Economist Angella MacEwen

The gain of 95,000 jobs in May was the largest one month gain since August 2002. These jobs were mainly private sector, full-time jobs, with half of the gains coming from the construction sector. This is certainly much needed good news for Canadian workers. However, there was an increase of 80,000 jobs seekers in May, which meant the unemployment rate barely moved despite the huge gain in jobs.

The manufacturing sector declined by another 14,200 positions in May, down nearly 100,000 positions from May 2012. And the proportion of the population that is employed remains at 62%, representing a gap of over 400,000 jobs compared to the pre-recession employment rate of 63.5%.

The Canadian Labour Congress, the national voice of the labour movement, represents 3.3 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.

The post Georgetti comments on Statistics Canada job numbers: Says government fails to consult labour on job plans appeared first on Canadian Labour Congress.

“Unemployment remains unacceptably high for younger Canadians and only a small fraction of those without work are able to gain access to Employment Insurance benefits,” says CLC President Ken Georgetti. “The government is abandoning these young workers.”

Georgetti was commenting on the release by Statistics Canada of its Labour Force Survey for April 2013. There were 1,361,700 unemployed Canadians in April, and the overall unemployment rate was 7.2%. In the 15-to-24 age group, unemployment stood at 14.5% and 46.8% of young workers are employed only part-time.

“It is really stunning that only 13% of unemployed workers in the 15-to-24 age group were able to able to qualify for Employment Insurance in 2012 – a mere 7.0% of unemployed women and 17% of unemployed men. This speaks to the harmful changes that Ottawa introduced to the EI system in 2012.”

Georgetti says, “We have 1.4 million unemployed Canadian workers. Yet the federal government has assisted employers to import hundreds of thousands of vulnerable migrant workers paying them less than prevailing wages. This has not helped match Canadians looking for work with the jobs employers need to fill. We should be concerned that there are no jobs for the unemployed and the TFWP is part of the problem.”

Quick Analysis from CLC Senior Economist Angella MacEwen 

A gain of over 12,000 jobs in April was not enough to move the unemployment rate, which remained stuck at 7.2%. In a change from the recent trend, all of the employment gains were due to public sector hiring, as the private sector shed 20,000 jobs in April.

Youth unemployment continues to be a serious concern. The real unemployment rate for youth age 15-24 increased by half a percentage point over last April, to 20.9%.

The Canadian Labour Congress, the national voice of the labour movement, represents 3.3 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  Follow us on Twitter @CanadianLabour

The post CLC says government failing young workers: Only 13% of unemployed youth qualify for EI benefits appeared first on Canadian Labour Congress.

“We know that only 37.9% of unemployed Canadians actually qualify for Employment Insurance,” Georgetti says. “That means either there are roadblocks put in the way of people receiving benefits from an insurance program that they paid into, or they have been out of work for so long that they have used up their  benefits.”

Georgetti was commenting on the release by Statistics Canada of its Labour Force Survey for December 2012. There were 1,357,200 unemployed Canadians in November and the unemployment rate was 7.1%.  In the 15 to 24 age group, unemployment stood at 14.1% and 47.6% of young workers are employed only part-time.

Georgetti says it is especially galling for the unemployed to be told by the federal government that there are jobs and skills shortages in Canada. “By latest count there are 5.3 unemployed people for every job vacancy. This government and employers should be providing training and apprenticeship programs so that unemployed workers can be better matched to the jobs that are available.”

Georgetti says that any recovery from the Great Recession of 2008-09 has been sluggish. “The unemployed and their families are the victims of a financial and employment crisis caused by corporate greed and mismanagement. The CEOs continue to get their fat pay packages while ordinary workers, their families and communities live with the consequences.”

Quick Analysis from CLC Senior Economist Angella MacEwen

There were 1,357,200 unemployed Canadians in December 2012. The unemployment rate was 7.1%, the lowest in 4 years, but still far above the pre-recession rate of 6.0%. For youth, unemployment stood at 14.1%, and 47.6% were employed only part-time. The real unemployment rate for youth in 2012 was 19.8%, up slightly from 2011 when it was 19.7%.

This is the second month of increasing job numbers, led almost entirely by gains in the private sector. Since 2008 the Canadian economy has added 376,800 jobs, but 64% of these jobs have been temporary. In December, 2012, 25% of the job gains were in contract or term employment. Because of this, more workers are finding that they don’t have access to Employment Insurance when their term is up and they are unable to find continuing employment. Changes to EI surrounding suitable work, which come into effect this weekend, will make this situation worse, as workers are forced to take poor quality jobs rather than being afforded the time to find a better match for their skills.

The Canadian Labour Congress, the national voice of the labour movement, represents 3.3 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  Follow us on Twitter @CanadianLabour

Contacts:  Angella MacEwen, CLC Senior Economist, 613-526-7412

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