Canada's Housing Bubble

Jan 8, 2010 Matt Stiles Canada Economy Examiner

Statscan released its latest labour force survey Friday, showing little change in the amount of Canadians employed in December, losing only 2,600 workers.  The unemployment rate remained unchanged at 8.5%.

In order to keep up with population growth, the economy should add approximately 28,000 workers on a monthly basis.  The lack of hiring suggests that the economy has not yet returned to its full potential, but also that the staggering job losses of a year ago have largely abated - at least for the time being.

Manufacturing, transportation, financial services and public administration sectors lost jobs on the month.  Meanwhile, construction, trade, technical services and health care gained jobs.  Ontario lost approximately 16,000 jobs, while Alberta gained 13,000.

Adult female workers lost jobs, while adult males made up for the loss.  This goes against the recent trend of more females gaining employment than males.

The survey is liable to have large sampling errors resulting in revisions.

Statscan also noted that as of January 28th, a new sampling methodology would be implemented, likely resulting in some sizable revisions.  They feel the new methodology will more accurately effect the current labour market.

The entire survey can be viewed here.