Posted: Friday, 9 January 2009

OTTAWA – The Canadian Labour Congress reacted to the latest employment numbers – showing the loss of over 70,000 full-time jobs in December and a net creation of just 7,100 full-time jobs for all of 2008 – with a call for the federal government to take bold and direct action aimed at creating jobs and helping the unemployed.

“The upcoming federal budget must focus on creating full-time jobs and fixing our broken Employment Insurance program. It can’t just focus on the needs of the banks and corporations that got us into this mess,” said Ken Georgetti, President of the Canadian Labour Congress.

Georgetti says “it’s just wrong” that when people need it most, the Employment Insurance program is not ready to help. Benefits are smaller than they used to be and do not last as long. In recent years, 6 in 10 unemployed men and 7 in 10 unemployed women failed to qualify for any benefits, even though they paid EI premiums.

“We have a plan to make EI work better at helping people when they lose their jobs. It’s what workers need right now. Fixing this important program must be part of the government’s plan to help people get through what is now an economic recession,” says Georgetti.

In addition to help for the unemployed, Georgetti says the upcoming budget needs to kick-start the economy through a major program of public spending on infrastructure to create jobs. But it must also contain measures to protect a further loss of jobs, particularly in manufacturing, mining and forestry as well as measures to protect the pensions and retirement savings of Canadians.

The CLC’s plan, “Get Real: It’s the Economy”, being promoted through radio ads, meetings with Members of Parliament and the Minister of Finance in coming days and weeks, can be found at canadianlabour.ca.

Analysis of Senior Economist, Sylvain Schetagne

Private sector full-time jobs are in crisis.

Canada lost 70,700 full-time jobs last month, pushing the unemployment rate up to 6.6%, an increase of 0.6% since December 2007. Over the previous year, Canada saw 229,700 more people enter the job market, however, it created only 7,100 new full-time jobs. The result was a significant increase in the number of unemployed Canadians last year – up by 131,500 since December 2007.

Involuntary part-time jobs replaced the lost full-time jobs. For instance, Ontario lost 22,000 full-time jobs in 2008, and the jobs created in Ontario last year were part-time jobs occupied by workers looking for full-time jobs. Overall, 34,400 jobs were lost in Canada in December 2008 due to the rise in involuntary part-time employment.

Of the 59,400 jobs lost in the private sector in Canada last month, 44,300 were in the construction industry. Young workers (aged 15-24) and men aged 25-55 were hit hardest by this major deterioration of the labour market in Canada. The number of unemployed youth increased by 15.6% from the same time last year.

Finally, the employment statistics for December 2008 confirm a coast-to-coast deterioration in the job market. Alberta, in particular, saw its unemployment rate climb by almost 1% between December 2007 and December 2008.

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 130 district labour councils. Web site: www.canadianlabour.ca

Contacts:
Sylvain Schetagne, Senior Economist, 613-526-7412
Jeff Atkinson, Communications, 613-526-7425 and 613-863-1413