June unemployment numbers for both Canada and the U.S. underwhelm - Macleans.ca

June unemployment numbers for both Canada and the U.S. underwhelm


Both Canada and the U.S. released June employment and unemployment figures this morning–and there was little cause of celebration.

Canada added a meagre 7,300 jobs last month, though, on a positive note, all that gain came from full-time positions. Somewhat puzzlingly, however, the lion’s share of hiring was in the public sector despite the ongoing fiscal restraint. Unemployment edged down a notch, to 7.2 per cent, though Statics Canada noted the dip was due to fewer people searching for work. All in all, it was neither good nor bad news.

The real downer came from the States, whose June job report fell well short of expectations. The U.S. economy added 80,000 jobs last month–20,000 shy of the consensus forecast, and a blow to President Barack Obama, whose reelection is thought to hinge on America’s job numbers. Unemployment figures, collected in a separate survey, showed the jobless rate unchanged at 8.2 per cent.

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June unemployment numbers for both Canada and the U.S. underwhelm

  1. Harper has been lying to Canadians about job creation numbers. He says he created 750,000 jobs, but that measures from the peak of job losses during the 2008 recession until now. The fact is economists measure performance from before the recession to after the recession and they measure the unemployment *rate* (which shows Harper and Flaherty know little about actual economics.)

    The average unemployment rate in 2006 (when Harper came to power) was 6.3%, which is about a point lower than what it is now. So Canada has suffered net job losses since he came to power.

    Also, during Harper’s time in power, the economy shed 500,000 good-paying jobs which were replaced with lower-paying McJobs. Harper’s “Economic Action Plan” is to bust labor and drive down wages and benefits further.

    Peaks, Troughs, and Crisis
    (Krugman explains the folly of measuring performance from recession trough)