Economy creates 25,800 new jobs but unemployment rate still rises

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P.E.I.'s jobless rate rises to 12.2 per cent

In Prince Edward Island, the unemployment rate rose to 12.2 per cent in May, up from 11.7 for the previous month.

OTTAWA — Canada’s labour market staged a modest rebound last month, but the good news was tempered by the fact the 25,800 net new jobs created were all part-time and many were likely temporary as the first wave of students entered the summer job market.

Despite the net increase in employment, Statistics Canada reported the official unemployment rate edged back to seven per cent after several months at 6.9, an unusual outcome caused by more Canadians entering the work force, which also may be attributed to the student cohort.

In Prince Edward Island, the unemployment rate rose to 12.2 per cent from 11.7 for the previous month.

In terms of the more desirable full-time category, the economy actually shed 29,100 jobs, a poor result that was papered over by the gain of 54,900 part-time jobs.

There were 48,600 net new jobs added in the 15-24 age group during the month, which Statistics Canada said provided the “first indicators of the summer job market, especially for students aged 20 to 24, as many students aged 15 to 19 are still in school.” Employment among men 25 to 54 fell by 23,000.

The net gain was largely in line with what economists had expected, although the consensus forecast draws no distinction between full-time and part-time work.

May’s result did little to alter the prevailing trend of an economy, after churning out strong job gains in the first few years following the 2008-09 recession, that has largely run out of steam in the one area most important to Canadians — the ability to create well-paying, permanent, full-time jobs.

The agency noted that over the last 12 months, only 86,000 net new jobs have been created — or a mere 0.5 per cent increase — with all the growth part-time.

Earlier this week, the Bank of Canada also noted that the economy had underperformed in the first quarter of 2014 and that the risk in the outlook had skewed slightly to the downside.

If there was a bright element to the report, it was that employers added 66,200 workers in May, as 40,400 left the self-employed class.

In terms of sectors, employment increased by 22,000 in education services and by about 20,000 in accommodation and food services. Agriculture jobs were also up 19,000.

Among sectors that lost jobs, the natural resources industry declined by about 23,000 and there were about 21,000 fewer workers in finance, insurance, real estate and leasing.

Manufacturing was also down by 12,200 and construction was largely flat.

Regionally, the agency said the biggest draw of jobs came in resource-rich Alberta, which picked up 16,400 workers. Most other provinces showed little change in relationship to their population, except for Newfoundland and Labrador, which lost 4,100 jobs, all full-time.

Organizations: Statistics Canada, Bank of Canada

Geographic location: Prince Edward Island, Canada, OTTAWA Alberta Newfoundland and Labrador Nova Scotia Quebec Ontario Manitoba Saskatchewan British Columbia

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  • No Surprise
    June 06, 2014 - 12:17

    Easy math considering 1 in 4 jobs since 2014 were given to Temporary Foreign Workers! Not only that, but Canadians are being laid off in many cases to make room for them. I had trouble finding work this winter, and did eventually find work in Alberta. Upon getting there I was introduced to my new crew. 2 out of 6 were TFW's. One Philipino the other American. Both of which I really like. It's not their fault our Government allows this. But I know a lot of people looking for work doing what they are here doing, so I do resent them being here. It was a great eye opener leaving the Island this time. Does the average Canadian realise that over 2.3 billion dollars of our money was sent back to the Philippines from TFW's this year? That's just one country. there's the U.S, Asia, India, Ireland, Africa and many others coming here displacing qualified Canadians. It's only a matter of time, and Canadians will eventually begin to rebel, because their votes mean nothing. My prediction anyways. As always, PEI is last to jump on the bandwagon, but as you are starting to notice, business owners here are beginning to take advantage. If you business can not survive paying a liveable wage, then Canada doesn't need your business. Please people, avoid all locations that don't hire Canadian. And no, this is not a race issue! Just because somebody doesn't look like me doesn't mean they are not Canadian, and just because they do doesn't mean they are!