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Saturday, April 7, 2012

Canada’s labour market pulls out of its slump

 According to the article, their were 82,300 jobs filled last month. The most since 2008 and brought the unemployment rate to 7.2%. The hottest market in job creation is Saskatchewan and has the lowest unemployment rate at 4.8%.It might be to early to say that the economy is turning around, as most economists do not see the job creation numbers steadily moving towards the positive direction.

With the help of large companies such as Toyota (announcing that they will hire 400 employees in their Woodstock, Ontario plant)  and factories have been adding workers for four months in a row. The main cause behind all this is the ease of tension in Europe and as optimistic grows towards the Canada-USA economy.

However, the steady job creation is not seen across Canada. Research by TD Bank shows that New Brunswick cut 6,600 jobs last month. This is the highest drop by the province in almost six years.

 If this is true the road to recovery looks closer than what had been originally predicted. Would that cause other issues such as interest rates increasing?  I wonder how the economy would deal with the rise in interest rate as the economy starts recovering. It will definitely have a negative impact on the prices of real estate properties.

Canada’s labour market pulls out of its slump:

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