Canada’s jobless rate falls
• TSX -125.75
• DOW +22.75
• Dollar -.28c to 94.53cUS
• Oil -$.99c to $75.47US per barrel.
• Gold -$4.80 to $1,169.00USD per ounce
Bank of Canada to keep rates low, uphold outlook
By Louise Egan OTTAWA (Reuters) - The Bank of Canada is widely expected to keep its hands off interest rates on Tuesday, holding them at near zero and committing to do so until at least July, despite growing evidence the economy is kicking back to life.
Canada’s unemployment rate falls to 8.5 per cent as 79,000 jobs created in November
OTTAWA — Canada’s economy swelled by 79,000 jobs last month, much better than many economists had expected, as the number of people with full-time and part-time jobs increased in November while the number of self-employed fell.
Statistics Canada reported Friday that Canada’s unemployment rate fell to 8.5 per cent in November, down one-tenth of a point from October.
The number of people with full-time jobs increased by 39,000 in November, the third straight month of increases, while part-time employment increased by 40,000, following declines in October and September.
“Simply put, this was an inexplicably strong report, and points to a very strong pick-up in Canadian labour market activity in November,” Millan Mulraine of TD Securities wrote in a note to investors.
“However, we consider this pace of job growth to be unsustainable, and believe that it is inconsistent with the current pace of economic recovery in Canada.”
While analysts generally welcomed the national job numbers, they did so with a few caveats.
“This is a generally solid report but with three flies in the ointment that cause concern,” Scotia Capital’s Derek Holt and Karen Cordes said in a note to investors.
They said their first concern is that total hours worked declined by 0.3 per cent. “More bodies are being hired, but at reduced aggregate hours worked. It’s hours worked that drive paycheques, such that the consumer cash flow implications are far less impressive than the job count.”
They were also concerned about many job gains being in the education sector.
“StatsCan has admitted that they have had difficulty with abnormal seasonal adjustments in this component over recent months,” they wrote. “We don’t trust this component and caution on future revisions and or disappointing base effects to the December jobs reading a month from now.”
Holt and Cordes were also concerned about weak productivity.
Self-employment also fell in November by 32,000 jobs. That’s potentially a good sign for the economy, since economists tend to discount self-employment gains in a weak economy as mostly involuntary, the result of enterprising Canadians starting their own businesses when they can’t find regular work.
Statistics Canada says employment is now down 321,000 jobs, or 1.9 per cent, since October 2008.
The agency also noted that hourly wages were 2.3 per cent higher than a year ago, the lowest year-over-year growth since March 2007.
Employment growth were spread across the country, with the biggest gains in Ontario, Quebec and Alberta.
Most gains were among women between the ages of 25 and 54, and men aged 55 and over.
Statistics Canada notes that between October 2008 and March 2009, employment fell in almost all industries, especially in manufacturing and construction. But since March, the manufacturing sector has slowly stemmed its hemorrhaging of jobs, while employment has picked up in construction and some service industries.
“Almost all the employment growth in November was attributable to the strength of the service sector (plus 73,000), especially educational services,” the agency said in a note.
“With November’s increase, employment in the service sector is back at its October 2008 level, while employment in the goods sector remains well below (minus 324,000) where it was at that time.”
Regionally, Ontario’s unemployment rate remained unchanged from the previous month at 9.3 per cent, even though the province’s economy grew by 27,000 jobs in November.
In Quebec, gains of 21,000 jobs pulled the province’s unemployment rate down four-tenths of a point to 8.1 per cent. The province has lost jobs more slowly than other provinces during the economic downturn.
Alberta’s employment rose by 13,000 last month, the biggest gain in more than a year. British Columbia’s economy also continues to grow.
Manitoba’s economy remained stable, as it has throughout the downturn, and Newfoundland and Labrador also saw employment increase by 2,700 jobs in November.
Benjamin Reitzes of BMO Capital Markets Economics says the November job numbers should boost the Bank of Canada’s confidence in the economy following soft economic growth in the third quarter of the year and weak October figures.
“The solid November report offsets the prior month’s disappointing drop,” he said.
“The average 18,000 gain over the past two months probably best characterizes the state of Canada’s job market, and points to an economy emerging from recession.”
The Canadian Press
Monday, December 7, 2009
Thursday, December 3, 2009
Financial Update For Dec. 3, 2009
• TSX +72,41 Canada is due to report November employment data on Friday, and the report is expected to show a gain of 15,000 jobs.
• DOW -18.90 Employment data showing U.S. private employers shed 169,000 jobs in Nov was worse than forecast, though lower than Oct's numbers. But it raised investor worries that the broader U.S. employment report for Nov on Friday might be weak.
• Dollar -.32c to 95.22cUS tracking a downward swing in the price of oil as investors cooled their heels ahead of week end employment reports.
• Oil -$1.77 to $76.60US per barrel.
• Gold +$12.90 to $1,200.00USD per ounce
• DOW -18.90 Employment data showing U.S. private employers shed 169,000 jobs in Nov was worse than forecast, though lower than Oct's numbers. But it raised investor worries that the broader U.S. employment report for Nov on Friday might be weak.
• Dollar -.32c to 95.22cUS tracking a downward swing in the price of oil as investors cooled their heels ahead of week end employment reports.
• Oil -$1.77 to $76.60US per barrel.
• Gold +$12.90 to $1,200.00USD per ounce
Wednesday, December 2, 2009
Financial Update For Dec. 2, 2009
• TSX +260.12 to 11,707.32 surged to its highest close this year boosted by record gold prices, receding credit problems in Dubai and a trio of rebounding US economic reports. Canadian Federal Finance Minister Jim Flaherty also expressed optimism the nation will see improved economic growth in 2010.
• DOW +126.74 on better-than-expected economic readings on construction spending and pending home sales
• Dollar +.81c to 95.54cUS as the Russian Central Bank commented it will buy Canadian dollars in a bid to diversify its currency reserves
• Oil +$1.09 to $78.37US per barrel.
• Gold +$18.00 to $1,199.10USD per ounce this 5.28% jump sets another all time high for the price of gold
Nearly all stimulus funds 'committed': Harper
David Akin, Canwest News Service
BEIJING -- Prime Minister Stephen Harper stepped off a 20-hour plane ride from Ottawa to Beijing Wednesday afternoon and the first thing he did on Chinese soil was unveil his government's economic action plan back in Canada.
In a downtown hotel here, Mr. Harper said that $28-billion in federal stimulus funds or 97% of what was allocated for the current budget year has now been "committed." More than 12,000 infrastructure projects across the country have been approved and, of those, work on 8,000 has begun. The government says it has created or preserved more than 220,000 jobs, exceeding the target set in the January budget of 190,000 jobs. And all that in just 250 days since the budget passed the House of Commons.
But many in the House of Commons, thousands of kilometres and 13 time zones away, will dispute the prime minister's claims and quarrel with his odd choice of delivering the news to Canadians while he's in China.
"It was a parliamentary resolution that insisted on a report in December," Mr. Harper said in answer to his choice of location. "If you look at the schedule the timing didn't permit me to do this before or after this trip
Transmitted by CNW Group on : December 1, 2009 05:00
Ontarians the biggest spenders in the country this holiday season, according to RBC Canadian Consumer Outlook
Half of Ontarians are still planning to spend less this holiday season
TORONTO, Dec. 1 /CNW/ - RBC today established a new monthly benchmark index - the most comprehensive consumer index in Canada - describing Canadian consumers' assessment of the economy and their personal financial situation. The inaugural RBC Canadian Consumer Outlook report found that, on average, Ontarians expect to spend the most in the country on holiday purchases, including gifts, decorations and entertaining, which total $1,646, compared to the national average of $1,218. However, one half (47 per cent) of Ontarians plan to spend less this year than last year and one in five of them (16 per cent) will not buy any gifts at all.
"Although Ontarians are concerned about jobs, their optimism about a recovery over the next year may be helping to dispel concerns about holiday spending," said Jennifer Tory, regional president, Greater Toronto Region, RBC. "We're finding that clients are coming to us more often for financial advice and solutions to achieve their goals."
The report also measures Canadians' perception of current conditions compared to three months ago, as well as short term (three month) prospects for their personal finances, their job anxiety and a number of other factors. Provincial highlights include:
- Job Anxiety: Job anxiety in Ontario is high at 29 per cent (tied with
B.C.), and sits at two points above the national average of 27 per
cent.
- Personal Financial Situation (Overall): Four in ten Ontarians (40 per
cent) think that their personal financial situation is worse than it
was three months ago, virtually on par with the national average (39
per cent). Similarly, more than one in four Ontarians (27 per cent)
think that their personal financial situation will improve in the
next three months, the same rate as seen nationally. They also
reflect the national mood in being more optimistic in the longer
term, with nearly four in ten Ontarians (38 per cent) expecting their
personal economic situation to improve over the next year.
"Talk of the U.S. economy emerging from recession and strengthening asset markets are boosting sentiment after a very poor first half of the year," said Dawn Desjardins, assistant chief economist, RBC.
• DOW +126.74 on better-than-expected economic readings on construction spending and pending home sales
• Dollar +.81c to 95.54cUS as the Russian Central Bank commented it will buy Canadian dollars in a bid to diversify its currency reserves
• Oil +$1.09 to $78.37US per barrel.
• Gold +$18.00 to $1,199.10USD per ounce this 5.28% jump sets another all time high for the price of gold
Nearly all stimulus funds 'committed': Harper
David Akin, Canwest News Service
BEIJING -- Prime Minister Stephen Harper stepped off a 20-hour plane ride from Ottawa to Beijing Wednesday afternoon and the first thing he did on Chinese soil was unveil his government's economic action plan back in Canada.
In a downtown hotel here, Mr. Harper said that $28-billion in federal stimulus funds or 97% of what was allocated for the current budget year has now been "committed." More than 12,000 infrastructure projects across the country have been approved and, of those, work on 8,000 has begun. The government says it has created or preserved more than 220,000 jobs, exceeding the target set in the January budget of 190,000 jobs. And all that in just 250 days since the budget passed the House of Commons.
But many in the House of Commons, thousands of kilometres and 13 time zones away, will dispute the prime minister's claims and quarrel with his odd choice of delivering the news to Canadians while he's in China.
"It was a parliamentary resolution that insisted on a report in December," Mr. Harper said in answer to his choice of location. "If you look at the schedule the timing didn't permit me to do this before or after this trip
Transmitted by CNW Group on : December 1, 2009 05:00
Ontarians the biggest spenders in the country this holiday season, according to RBC Canadian Consumer Outlook
Half of Ontarians are still planning to spend less this holiday season
TORONTO, Dec. 1 /CNW/ - RBC today established a new monthly benchmark index - the most comprehensive consumer index in Canada - describing Canadian consumers' assessment of the economy and their personal financial situation. The inaugural RBC Canadian Consumer Outlook report found that, on average, Ontarians expect to spend the most in the country on holiday purchases, including gifts, decorations and entertaining, which total $1,646, compared to the national average of $1,218. However, one half (47 per cent) of Ontarians plan to spend less this year than last year and one in five of them (16 per cent) will not buy any gifts at all.
"Although Ontarians are concerned about jobs, their optimism about a recovery over the next year may be helping to dispel concerns about holiday spending," said Jennifer Tory, regional president, Greater Toronto Region, RBC. "We're finding that clients are coming to us more often for financial advice and solutions to achieve their goals."
The report also measures Canadians' perception of current conditions compared to three months ago, as well as short term (three month) prospects for their personal finances, their job anxiety and a number of other factors. Provincial highlights include:
- Job Anxiety: Job anxiety in Ontario is high at 29 per cent (tied with
B.C.), and sits at two points above the national average of 27 per
cent.
- Personal Financial Situation (Overall): Four in ten Ontarians (40 per
cent) think that their personal financial situation is worse than it
was three months ago, virtually on par with the national average (39
per cent). Similarly, more than one in four Ontarians (27 per cent)
think that their personal financial situation will improve in the
next three months, the same rate as seen nationally. They also
reflect the national mood in being more optimistic in the longer
term, with nearly four in ten Ontarians (38 per cent) expecting their
personal economic situation to improve over the next year.
"Talk of the U.S. economy emerging from recession and strengthening asset markets are boosting sentiment after a very poor first half of the year," said Dawn Desjardins, assistant chief economist, RBC.
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