Despite the worrying times, Canada's labour markets continued to be healthy in October 2008, according to Statistics Canada. The year-over-year employment gain nationwide was +1.3%, which is in keeping with the long-term average, and the unemployment rate was 6.2%. In a rare occurrence, Canada's jobless rate was below the level recorded in the United States (6.5%).

As for how the individual cities in Canada are performing, the West is continuing to do better than the East, despite the fact that commodity prices are pulling back as a result of the worldwide economic slowdown. The most readily apparent adjustment has come in oil prices, down by about two-thirds versus the early days of this past summer.

The West has the Lowest Unemployment Rates
Eight of the 10 cities with the lowest unemployment rates are in the West, beginning with Victoria, Edmonton and Calgary, all below 4.0%. The two eastern cities among the 10 front-runners for low unemployment rates are Québec City, a provincial capital, and Ottawa-Gatineau, the federal government capital. Canada's motor city, Windsor (10.1%), is the only municipality in the country with an unemployment rate in double digits.

A Foretaste of What's to Come
As for job creation, a majority of cities are still providing employment gains, or at least they were when the survey was conducted in October. However, there has been a re-ordering regionally. The split among the top 10 is now even, at five each, between west and east. Abbotsford (an aerospace hub), Regina and St. John's (both resource hubs) are out front in the race. But some other surprising contenders include Oshawa (despite auto sector woes), Kitchener and Kingston, all above +4.0%. In a foretaste of what is likely to come, it should also be noted that 10 cities are now experiencing job cutbacks.