Some Interesting Anomalies are Appearing in Canadian Labour Markets
Alex Carrick
With concern rising over a U.S. slowdown and the price of oil crossing $100 U.S. per barrel, forecasters and economy watchers are spending most of their time these days on the alert for economic problems.
By way of contrast, the most significant problem in Canada’s labour market, so far, has related to finding workers. This is particularly true for the construction industry. Strong activity levels and an aging work force — with looming retirements in many of the skilled trades that are increasingly in demand — indicate that this will continue to be an issue for the foreseeable future.
Part-time Job Growth Exceeds Full-time
Interesting changes in the nature of Canada’s work force are apparent in the accompanying graphs. Full-time employment in Canada increased strongly throughout 2007. However, the gain in full-time jobs has been almost exactly the same in 2007 as in 2006. The proportionally greater increase in jobs has come in part-time work. This may well be a function of the availability of workers, given that the unemployment rate at 5.9% is the lowest in decades.
More New Public Sector Jobs in 2007 than Private Sector
Another interesting trend concerns private versus public sector employment. Private sector jobs increased in 2007, but the actual gain was considerably less than in 2006. The most remarkable increase in employment over the last four months has been in the public sector. Public sector employment throughout 2006 was essentially flat, but it has taken off since August of 2007.
Through 11 months of 2007, the public sector (+198,000) has provided more new jobs than the private sector (+190,000). Governments have been particularly flush with money as a result of higher than expected revenue from taxes of almost every variety (e.g., corporate, private, sales, capital gains, etc.)
