Employment levels shrank for the fifth straight month in March, as
61,300 Canadians lost their jobs, according to a report published
Thursday by Statistics Canada.
Although employment losses are
expected to continue for at least the next few months, there was a
sliver of good news in the March report — the rate of job destruction
appears to be slowing.
Canadian employment levels fell a more
traumatic 82,600 in February and 129,000 in January. This pattern of
diminishing layoffs is sharply different from the one driving U.S. job
markets, which are continuing to slide each month at a constant rate.
The
recession is attacking parts of Canada’s economy with disproportionate
force. Private-sector employers shed nearly 68,000 jobs in March, while
their public sector counterparts actually added 1,000 positions in the
same month. There was also an increase of 5,200 self-employed Canadians.
The
contrast between goods-producing and service industries was equally
stark. The former trimmed 62,600 jobs in March, while employers
specializing in services added 1,300.
The recession’s uneven
impact was also evident within the services sector, where there were
significant cuts in jobs involving real estate, hotels and food
services, while employers in business and educational services did some
hiring.
These patterns could be seen in Ottawa-Gatineau, where employers trimmed 6,300 jobs in March.
A
detailed look, which requires using seasonally unadjusted data, shows
the national capital region lost 10,200 jobs between March 2008 and
March 2009 — an employment decline of 1.5 per cent.
However, the
overall average disguised some dramatic swings within the area job
market. The manufacturing sector in Ottawa-Gatineau — which incudes
high-technology firms — saw year-over-year employment declines of 12
per cent. Jobs in retail and wholesale trade fell nearly 19 per cent.
At
the same time, the number employed in educational services was up 12.7
per cent from March 2008 to March 2009, and the public administration
sector padded their job rolls by five per cent.
Since last
October, when Canada’s employment levels peaked at 17.2 million, the
recession has played out very differently by region.
In all,
nearly 357,000 jobs have been lost — with Ontario bearing the brunt.
Although the province accounts for just 39 per cent of the country’s
population, it has suffered 48 per cent of the cumulative shrinkage in
Canada’s job market.
Ontario’s manufacturing firms contributed heavily to the bleeding — indeed, were shedding jobs long before October 2008.
More
recently, however, Alberta and B.C. have seen their employers trim
staff at a furious rate. Alberta, with 10.5 per cent of Canada’s
population, accounted for 13.5 per cent of all jobs lost from October
to March. B.C. also lost a disproportionate share.
The western provinces had been doing exceptionally well until the autumn, when energy prices fell at a dramatic rate.
Several
regions continue to support relatively strong employment markets. For
instance, the major Atlantic cities —Halifax, Saint John and St. John’s
— reported higher employment in March than they did last October.
Regina, Winnipeg and Saskatoon were also in this camp — thanks largely
to agriculture and related industries that have not been as hard hit as
the energy and auto sectors.
Ottawa-Gatineau’s job market has
declined three per cent over the same five-month period. Among the
worst-hit cities so far in the recession are those with a big
manufacturing base — such as Oshawa (where employment was down 5.5 per
cent), Kitchener (down 3.3 per cent) and Windsor (down 3.1 per cent).
With
signs the U.S. banking systems may at last be stabilizing, there’s hope
that the United States’ economy will begin to revive.
Until it does, it will not be easy to arrest the downward momentum in Canada’s job market.
In
the past five months, employment collapsed at a much faster rate than
at a similar stage during the recession of 1982 — and that remains
Canada’s worst economic downturn since the Second World War.
Consider
that from October to March, Canada’s employment levels tumbled 2.1 per
cent. During the first five months of the 1982 recession the number of
jobs contracted only 0.8 per cent. Employment continued falling another
12 months before finally bottoming out.
If you have been terminated and need to speak with a lawyer please do not hesitate to call Matt Lalande at Haber and Associates or email him at matt.lalanade@haber-lawyer.com.