Strong Gains In Employment For Canada

Canada’s employers hired more workers in September than in any other month ever before as 107,000 new jobs were created in September, according to Statistics Canada.

Looking at the figures more closely however showed that of the new jobs created, 97,000 were in part-time positions and only 10,000 were full-time jobs.

Canada’s unemployment rate was unchanged at 6.1 percent as the increase in employment was matched by an increase in available workers.

Five provinces mainly accounted for the employment gains. These were Ontario, Quebec, Alberta, Saskatchewan and Nova Scotia.

Employment in Ontario rose by 52,000, bringing growth so far in 2008 to 1.6 percent. Despite these gains, Ontario’s unemployment rate rose to 6.4 percent, as a large number of workers entered the labour market. So far this year, employment increases have occurred in transportation & warehousing, construction, accommodation & food services and health care & social assistance, while there has been a decline in manufacturing.

In Quebec, employment increased by 32,000 in September, pushing the unemployment rate down 0.4 percentage points to 7.3 percent. Over the first nine months of this year, there has been little employment change, as gains were dampened by declines in retail and wholesale trade, agriculture and “other services.”

Employment in Alberta rose by 17,000 in September, bringing total gains this year to 30,000 (+1.5%). This is half the increase seen at same time last year, indicating growth in the oil-state may finally be easing. Despite the new jobs created, a large increase in people looking for work pushed Alberta’s unemployment rate up from 3.5 to 3.8 percent, still the lowest in Canada.

In Saskatchewan, employment was up by 7,700 in September, a similar increase to August’s. The unemployment rate fell 0.4 percentage points to 4.1 percent. So far this year, employment has grown by 2.9 percent, the fastest rate of growth of any province. Increases over this period occurred mainly in construction, health care & social assistance and natural resources.

Employment also increased in Nova Scotia in September, up 4,900, bringing the employment rate back to its record high of 59.3 percent.

In Newfoundland and Labrador, employment edged down 2,700 in September, leaving employment in the province down slightly from the level at the end of 2007.

Employment prospects seem set to worsen as the Bank of Canada reports lending to businesses is falling and that a record number of employers are reporting tighter credit conditions – indicating they will have trouble growing their businesses as easily as they have in recent years.