The jobless rate in Canada continues to rise, and no end to this slump is in sight. The unemployment growth in the country is predicted to be the slowest since 2001. The gains in employment between January and July saw a 42,000 decrease from the first seven months of 2012.
Canada is home to the 11th largest economy in the world. Therefore, to prevent experiencing the lowest annual gain since 2001 with the exception of 2008-2009, which were recession years, the country needs to add around 30,000 jobs for the remainder of the year.
Jobs in Canada have decreased. Employment for nurses and other healthcare workers have declined. Because fewer jobs are available, consumers are likely to spend less money, so the economy will really suffer. Canada had reclaimed jobs lost in the previous recession quicker than France, Germany, Italy, Japan, The United Kingdom and The United States; however, the country’s jobless rate is losing its advantage over those countries.
Unfortunately, the jobless growth has waned, so the housing and consumer markets are at risk. In addition, gains in income have also decreased, therefore, people will have trouble paying down debt, and they will be spending less money. The average income of employees in July was 1.35% down from 3.9% in July of 2012.
Citizens are trying to curb their spending habits in order to decrease their debt. If the trend continues, it will become a major problem. Numerous manufacturers have had to lay off employees, causing job gains to dwindle. The unemployment rate held at 7.2% in August, so it has remained the same.
Because the banks continued to be strong, Canada was affected less than the United States by the global financial crisis. Therefore, the unemployment rate was 2.2 percentage points lower than the employment rate in the United States. In 2010, employment in Canada grew by 1.8%, which was twice as much as the U.S. Since December, employment in the United States has increased significantly more than employment in Canada.
Experts estimate that the jobless rate in the United States will decrease more than the rate in Canada through the next five years. Authorities continue to remain positive stating that this downward trend will gradually start improving.