(Newswire.net — December 11, 2019) — Canada’s job market is under great pressure right now. 71k Canadians lost their jobs these past few months and things are not looking up for the country. Prior, in October another 1800 lost their jobs and for now, the unemployment rate has gone up to 5.9% from October’s 5.5% which is the biggest one-month jump since 2009.
Considering the importance of the job market for the country, this is an even bigger deal. The country’s domestic outlook has been largely driven by the job market as it has generated some of the fastest gains in decades. The Bank of Canada has issued a statement saying that the November jobs numbers were weak across their details and cast fresh doubt on the Bank of Canada’s room to chart its own course.
Predictions for the year 2020
Now as the end of the year approaches more and more executives and investors are sharing their predictions With one of the most gloomy ones being that Canada is set to experience 60% odds of a rate cut in the next year.
Some industries were damaged more than others. The retailers and the gambling venues were some of the highlights that managed to maintain the equilibrium, with online casino games for real money Canada is still at their height. Promotions such as Casino Bonus Codes in Canada have given these industries a higher chance of staying largely untouched while the rest of the Canadian economy is in for the ride.
Even though the impact of these cuts will be felt by a large group of people, the experts are saying that the overview of the country’s economic state in 2019 still looks solid despite this massive job loss. Despite the big numbers, Canada remains on its way to having one of the strongest employment of the last 20 years with the employee’s ex[eriencing a 4.4% increase in their wages. But the concern over the next year remains.
Oxford Economics says that they don’t see an imminent recession in Canada, their models continue to send worrying signals. The on-going US-China trade was named as one of the contributing factors in decelerating growth across the world. But it’s not just foreign affairs that have affected the country’s economy. There is a myriad of domestic concerns that are weighing on the outlook. The verdict for Canada going into recession in the next 12 months is as high as 40% according to the Canada economics director, Tony Stillo. While the experts at S & P Global Rating put the percentage between 25-30 percent.
The private sector that has been faced with the most challenges has been the private sector which has been struggling for the past few months consistently and in the 71k lost jobs, the private sector has been the biggest contributor as well.
The job loss came as a surprise largely because the economists previously have been predicting a gain of 10,000 jobs and the unemployment was said to stay that same 5.5% throughout the years, while in reality, the massive job loss hit the full-time and part-time jobs across multiple industries.
The Goods-producing sector alone lost 26,600 jobs. The number of manufacturing jobs fell by 27,500 and the natural resources sector shed 6 500 jobs. The services sector took the biggest hit with 44,400 jobs being lost and the public administration was reduced 24,900 jobs in November.
The interesting statistic is that Ontario’s and Prince Edward Island were the only provinces that actually saw an increase in jobs, while Quebec lost 45,100 jobs and the Alberta and B.C both together lost 18,200 jobs. This has been painted as one of the worst instances in the Canadian economy and job market history.
What triggered the massive job loss
Some economists are now saying that this situation is the result of several months of outsized employment gains that weren’t aligned with the more modest economic growth happening in the country, which would explain the drastic difference between the prediction made by economists and the reality that they got in December. The 2009 job cuts were tied to the global financial crisis but this time it might have to do more with the inefficiency of resource distribution from Canada’s part.
Nonetheless, most experts agree that Canada will manage to bounce back, at least at the end of the following year. There are already some talks about an additional wave of new job opportunities to come to the country at the beginning of January.
While those industries that were not affected will probably continue in the same direction. Canada’s private sector, on the other hand, will need to take a fresh look at its setup in order to get back to its equilibrium and avoid similar mishaps as much as possible in the future.
While some of the factors that contributed to this huge job loss were in fact out of Canada’s control, there are some things that the authorities could have done differently that would have softened the blow. It is quite possible that the prediction about the recession won’t come true but either way, Canada has to prepare for a tough year and use its resilience to the max.