Canadian employment increased by 14,600 in March, following 43,300 rise in February. Full time jobs were reduced by 19,600, which was partially offset by 34,200 rise of part time jobs.
Most working places were added in transportation and warehousing spheres. 19,900 people found jobs in this sector. This gain is the highest level among the components of “service industry”. In spite of the crisis in the US real estate market Canadian construction firms hired 9,600 employees. Thereby, this sphere of economy increased employment by 83,200 year over year. Hereupon construction industry in business and building services providing sector 10,200 people found jobs.
Despite the strong Canadian dollar some revival is observed in accommodation and food services industry. There was also stated a significant employment increase in health care and social services, as well as natural resources sectors.
These increases were partially offset by falls in recreation, financial, insurance and real estate services, and manufacturing spheres. In March employment in recreation and culture services providing sector tumbled down by 24,300 or 3.1%. Banks, insurance and real estate agencies fired 12,900 people. As a result, the growth in this industry decelerated to 0.1% over year. Companies of manufacturing sector managed to create 9,400 jobs. Moreover, during the last twelve months 113,300 people lost their jobs in manufacturing sector, which ensured 5.4% slippage in employment over year.
Even so, unemployment rate soared by 0.2% to 6%. In March average hourly wages climbed to 4.7% over year, which is 0.2% lower than a prior month (chart 1).
Negative impact of manufacturing employment reduction, due to the strength of the Canadian dollar and higher competition on part of the emerging countries, was fully offset by job growth in the whole economy, thanks to record high commodity prices and relatively low interest rates. However, further slippage of unemployment rate will be limited in medium term, as higher prices of oil have a political nature and growth rate of immigration is increasing. The US economic growth deceleration will have additional negative impact on labor market and will cause unemployment increase mainly in manufacturing.
CANADA ECONOMIC INDICATORS
Chart 1
Source: Bloomberg
