Friday, July 9, 2010

Canada Creates More Jobs then the US

Amazingly a country roughly 1/10th the size of the US created slightly more jobs in June then the US. Canada added 93K jobs versus the 83K in the US. Its not a surprise to anybody that Canada would have a stronger economy due to its high dependence on resources needed by China and other emerging economies. But for Canada to create more jobs then the US is a direct indication of the policy issues in the US. The US should be creating 300K private jobs a month coming out of this recession, but various reforms in healthcare and finance have led to stop hiring. Not to mention that attack on offshore drilling will only help move jobs inland to places like Canada.

The interesting part is that most of the jobs were created in the services sector. Maybe all the banks are gearing up to take business from US banks weighed down by FinReg. Canada is also quickly approaching employments levels of before the recession while the US has hardly began adding jobs and possibly years away from reaching those employment levels.


Some interesting notes from The Canadian Press:

  • Statistics Canada said Friday that the economy had created a whopping 93,200 new jobs last month — almost all in Ontario and Quebec and all in the services sector.
  • That took the country's unemployment rate below eight per cent for the first time since the depths of the recession in January 2009, and now stands at 7.9 per cent. That is in contrast to a June retreat in jobs in the United States and flat readings through most of the other G7 nations.
  • Many expect bank governor Mark Carney to boost the central bank's key rate one-quarter point to 0.75 per cent — still a low level by historical standards.
  • According to Statistics Canada, the economy, which has been visible slowing this spring, has managed to create 227,000 new jobs in just past three months, and has now all but recouped the jobs losses of the 2008-2009 recession.

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