Making a bad situation sound as good as possible

Ed


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Jobless rate dips to 9-month low

TAVIA GRANT

>From Saturday's Globe and Mail Published on Saturday, Feb. 06, 2010 12:00AM 
>EST Last updated on Saturday, Feb. 06, 2010 4:16AM EST 

Canada's economy created 43,000 jobs in January, nudging the jobless rate to a 
nine-month low of 8.3 per cent and providing encouragement that the country's 
employment picture is steadily brightening.

It was the fourth gain in jobs in six months - and a stark contrast to the same 
month last year, when employers shed a record 130,000 positions. The country's 
young people are also beginning to find work, Statistics Canada reported 
yesterday.

The good news, however, masked some sobering facts: All of the new jobs last 
month were in lower-paying part-time positions. The goods-producing side of the 
economy continues to hemorrhage jobs. And underemployment - the number of 
discouraged workers or people with part-time jobs who want full-time work - hit 
12.3 per cent, compared with 11 per cent a year ago.

Temporary employment agencies, which tend to be leading indicators of labour 
market trends, confirm the slow pace of improvement.

"Most companies we're working with are still on the yellow light, not the green 
light yet, in making hiring decisions," said Craig Brown, general manager for 
Canada at Spherion Staffing Services. "It's better than last year. But not 
full-bore ahead."

Hiring is picking up at accounting and IT positions at financial firms, and 
logistics firms are ramping up this month, Mr. Brown said, adding that his 
company is hiring across the country.

More broadly, employment centres, security services and travel agencies led 
last month's job gains, Statscan said. Goods producers, such as factories and 
utilities, cut jobs.

"Even part-time, retail jobs for youth are better than seeing nothing at all," 
said Avery Shenfeld, chief economist at CIBC World Markets Inc. "We'll take 
what we can get in the early stages."

Some temporary factors may be juicing the numbers, suggesting jobs reports will 
continue to be bumpy. British Columbia posted 12,000 new jobs last month, 
partly thanks to Olympic-related hiring in retail, food and accommodation. And 
health-care positions, which swelled with the nationwide H1N1 vaccination 
program, may subside as the program winds down.

Average monthly job growth in the November-to-January period is now 29,000, 
according to Toronto-Dominion Bank.

Still, the recession has vaporized 280,000 jobs from the economy, a loss that 
remains a central concern to policy makers in Ottawa. Prime Minister Stephen 
Harper said last month that job creation is a key priority for his government 
this year and that "more has to be done" on that front.

Worries remain about whether the private sector will start hiring again as 
stimulus spending fades and interest rates rise. In recent weeks, some 
companies such as Vidéotron Ltée, SAS Canada and Garda World Security Corp. 
have all announced hiring plans.

And they're being swamped with potential workers. Globalive Communications 
Corp., for example, received 6,000 job applications before it posted any 
openings. The Toronto-based wireless company plans to hire 400 people this 
year, adding to its existing 700 staff. "We're confident about the coming 
year," said Marieta Mendoza, head of recruitment. "It's only going to get 
brighter from here."

******

CANADIAN LABOUR SNAPSHOT

JANUARY, 2009 

Jobs lost: 130,000 - the most on record.

Jobless rate: 7.3 per cent

JANUARY, 2010 Jobs created: 43,000 Jobless rate: 8.3 per cent, down from 8.4 
per cent a month earlier

By sector

Business, building and other support services, along with retail and wholesale 
trade were the main drivers of employment increases last month. Losses occurred 
in professional, scientific, and technical services, while manufacturing and 
agriculture also shed workers. By age Women aged 25 to 54 and young people 
drove last month's gains.

Youth jobs rose by 29,000, the first real increase since the labour market 
started its decline, pushing down their unemployment rate to 15.1 per cent from 
16 per cent. Older women have the lowest jobless rate, at 5.6 per cent. 
Part-time/Full-time

Part-time employment climbed by 41,500 new positions last month, returning it 
to the level of six months ago. Full-time employment rose by only 1,400, though 
it has been increasing over the past half year.

Private/Public

The private sector created 53,700 positions last month; the public sector added 
13,400 jobs. Self-employment, which swelled throughout the past year as people 
had few other income options, fell by 24,000 positions.

Source: Statistics Canada 
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