Posted: Friday, 7 May 2010

OTTAWA – April’s job numbers are a surprise and welcome news for an economy wearied by unemployment and a staggering loss of family-supporting jobs. But the news isn’t all good, warns Ken Georgetti, president of the Canadian Labour Congress.

“This is the long-awaited boost from economic stimulus spending, with full-time jobs coming in construction and being taken up by the group hit hardest by the recession – men over 25. These jobs are welcome and needed, but we shouldn’t fool ourselves; these jobs are also temporary. When the stimulus spending runs out, and interest rates on mortgages go even higher, what’s left?” asks Georgetti.

“We lost 20,600 manufacturing jobs in April, and almost 100,000 of these jobs in the last twelve months. Most of the new jobs created outside of the economic stimulus bubble were in retail and were part-time, lower paying jobs than the jobs lost since the recession started. Those who pushed (and pushed hard) for an economic stimulus package should take credit for the relief we’re seeing, but we should all be deeply concerned about the quality of jobs being created in the long‑term,” he says.

“We leased this jobs recovery with government spending. We needed to do it. However we need to focus on what’s next, and that’s a plan to create long-term, full-time, family-supporting jobs for Canadians. Without that, economic recovery is a long way off,” says Georgetti. 

Quick Analysis from CLC Senior Economist Sylvain Schetagne

Even if the number of jobs created last month seems impressive, the quality of these jobs remains problematic. The level of employment in manufacturing remains dramatically low, and the long-term unemployment rate has reached a new record level since the beginning of the crisis.

In April 2010, the number of Canadians active in the labour market jumped by 92,000 and about 17,000 unemployed Canadians were able to find a job. In total the labour market added 109,000 jobs, but most were part-time (64,800). Many new jobs created last month were in retail and wholesale trade (+31,600), a sector where low-wage and part-time work can be found.

The number of jobs in manufacturing, a sector where many good jobs are found, decreased by another 20,600. Over the last year, more than 90,000 jobs have been lost in this sector. Since its peak in November 2002, over 575,000 manufacturing jobs have disappeared.

In fact, April 2010 saw one of the lowest levels of employment in Canada’s manufacturing sector in 30 years.

The unemployment rate in April 2010 remained above 8.0%, at 8.1%, mainly because there were barely enough jobs created to absorb new entrants into the labour market. There were 1,498,300 people unemployed last month compared to 1,137,400 in October 2008. The number of unemployed in April remained more than 31% above what it was before the beginning of the jobs crisis in 2008.

Even more problematic, the percentage of Canadians unemployed for more than six months was at the highest level since the jobs crisis began in 2008. In April, 22.5% of unemployed Canadians, or close to one in four, had been unemployed for more than six months. The “real” unemployment rate, a rate that includes discouraged workers and involuntary part-time workers, remained very high in April 2010, at 11.8%. In April 2008, the “real” unemployment rate was 8.9%.

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, CLC Senior Economist: 613-526-7412
Jeff Atkinson, CLC Communications: 613-526-7425 or Mobile 613-863-1413