Unemployment rate in Canada gives optimistic indication to other countries as they solved the unemployment rate problem causing it to drop.
The unemployment rate in Canada has reached its lowest rates in 18 months since June of last year. According to the report of Statistics Canada last Friday, the unemployment rate in Canada dropped by 0.2 percent from 8.1 percent to 7.9 percent.
Economists expected that the job opportunities for the following weeks would be around 15,000 up to 20,000. But the expected opening of jobs recorded was far from what the economists expected. Canada opened up 93,000 jobs last month resulting to the decrease in the unemployment rate in Canada. According to Statistics Canada, it was the first time since January 2009 that the unemployment rate reached the levels below 8. Furthermore, the federal agency added that the economy has almost recovered the jobs that were lost in the year 2008.
According to Benjamin Reitzes, an economist at BMO Capital Markets in Toronto, “Businesses are confident in our recovery and are hiring. That should get the ball rolling on growth from a private sector perspective.”
The declining unemployment rates also spell out a more optimistic forecast for the economy of Canada. Canada will be experiencing growth for the following years as unemployment rates drop. According to the International Monetary Fund, job markets will be leading the economy’s rise this year since it is one of the strongest parts of Canada’s recovery.
According to Statistics Canada, “Employment has been on an upward trend since July 2009, increasing by 403,000 (+2.4 per cent). These gains offset nearly all the employment losses observed during the labor market downturn, which began in the fall of 2008.”
“The June unemployment rate, however, remained well above the October 2008 rate of 6.2 per cent, due to a large increase in the number of people in the labor force over this period.”
The job opportunities that opened up in June were equally distributed to the part-time and full-time workers, Statistics Canada said. Since July last year, full-time workers have occupied most of the jobs opened. The increase in the full-time work was 2.6 percent while the increase in part-time work was 1.5 percent.
However, the job opportunities were not equally distributed to other provinces across the country. Ontario opened up 60,000 jobs while Quebec opened up 30,000 jobs. The other 3,000 went on to other provinces. Five sectors were fortunate that they won the Job lottery as 22,000 opened for (22,000), business, building and other support services (20,000), health care and social assistance (20,000), automotive repair and personal care services (17,000), and construction (11,000).
