CLC/Job Numbers: Full-time Jobs Declined in Three Provinces

OTTAWA, ONTARIO–(Feb. 9, 2007) – “More big numbers, some good news, yet much disappointment for those of us who believe that a job should bring economic security and improve the quality of life,” says Ken Georgetti, president of the Canadian Labour Congress about the Statistics Canada’s Labour Force Survey for January 2007. (Check below for the detailed analysis of economist Erin Weir).

“It is truly good news that Statistics Canada can report real growth in employment for Aboriginal workers and it is good news that 89,000 new jobs were created last month. However, most of the new jobs are part-time, most of them are in activities where wages are usually low and employment security questionable.””It is worrisome that in three provinces, Ontario, Quebec and Newfoundland and Labrador, the actual number of existing full-time jobs is declining. It must also be noted that, even in British Columbia and Alberta, where most of the jobs creation is concentrated, the question of job quality is acute.”

“Even the banks notice the deficient quality of the new jobs. When will federal government acknowledge the problem and face the fact that the country needs a jobs strategy, a serious plan to raise and sustain the standard of living of working families,” concludes Georgetti.

The unemployment numbers – Last month, January, 2007, the unemployment rate edged up to 6.2% from 6.1% in December 2006. The creation of 89,000 new jobs was offset by the number of newcomers to the job market that could not find employment. Though there are new manufacturing jobs in British Columbia and Alberta, the crisis in that sector remains as total employment is still lower than it was in November 2002 by 210,000 jobs. Last month, in seasonally-adjusted numbers, there were still 1,096,500 Canadians who wanted to work but did not have a job.

Economist Erin Weir’s Analysis

Full-Time Decline and Part-Time Trend

– Over the last three months, since October 2006, two-thirds of new jobs in Canada have been part-time positions.

– In Ontario, Quebec, and Newfoundland and Labrador, the total number of full-time jobs declined in January. Together, these provinces lost more than 10,000 full-time jobs in January.

Manufacturing Picture Unchanged

– The continuing loss of manufacturing employment in central Canada completely offset the manufacturing employment created in western Canada, including 6,000 new jobs in Alberta last month.

– Since the peak of November 2002, the country has lost more than 210,000 manufacturing jobs.

Wages

– Nationwide, average hourly wages rose by 2.2% between January 2006 and January 2007. The increase was only 1.5% outside of western Canada, barely keeping pace with inflation.

Job Quality

– Coming behind the labour movement’s analysis of the matter, CIBC World Markets calculates that its “Employment Quality Index” has declined during the past six months to its lowest level since the early 1990s. Even in booming Alberta, employment quality has fallen.

– CIBC also notes that sixty percent of new jobs created during the past six months were self-employed positions as opposed to paid positions.

– The reduction in job quality helps explain why seemingly large increases in the total number of jobs have translated into only modest economic growth.

The Canadian Labour Congress, the national voice of the labour movement, represents 3.2 million Canadian workers. The CLC brings together Canada’s national and international unions along with the provincial and territorial federations of labour and 135 district labour councils.

CONTACT INFORMATION

Canadian Labour Congress
Jean Wolff
Communications
613-526-7431 and 613-878-6040

or

Canadian Labour Congress
Erin Weir
Economist
613-526-7412
www.canadianlabour.ca