Should The Canadian Economy Be Worried?

06 July 2012 12:00 - Phoebe Robinson

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Should The Canadian Economy Be Worried?

Canada has seen a slide in the Jobs growth market in June. This is the Second month in a row in which this has happened. This slow in job growth comes as a reality check after outsized employment gains in the early stages of the year.  Canada is experiencing drops in business confidence as a result of the Eurozone debt crisis and a stalled U.S economy meant Canada generated just 7,300 net new jobs last month according to Statistics Canada which is not great for the Economy’s confidence and recovery. 

In June there was an increase, though above market forecasts a 5,000 gain and analysts took some comfort in this even from the modest gains after anticipating some payback for the unsustainable two-month jump of 140,500 jobs in March and April which was the biggest in over 30 years. The unemployment rate dipped to 7.2% in June from 7.3% as less people were searching for work.

The Canadian dollar hit a session high C$1.0140 to the U.S dollar after the North American jobs data. If later fell to C$1.0185 to the U.S dollar, or 98.18 U.S cent.
On top of this Canadian bond prices have been creeping up across the curve, and yields have dipped following the Northern American jobs data.  The jobs data is not yet strong enough to push the Bank of Canada closer to an interest rate increase for the first time since September 2010 said analysts.

Now despite gloom over job growth, a survey taken by the Brussels based International Trade Confederation by global research firm 61 percent of Canadian respondents think that their country is heading in the right direction and only 39% thought it was going in the wrong direction.  In this survey Canada came in second to Brazil and slightly ahead of South Africa on the optimistic scale.  Their neighbours in the U.S were less optimistic only 35% of Americans thought their country was doing the right thing to hasten the country’s recovery and 65% were only negative about the direction the U.S was heading in. And not Surprisingly the Greeks were the most pessimistic. 



Related Links:
• Statistics Canada
Offical Website


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