Business

Canada loses 17,000 jobs as unemployment rates rises to 5.2%

Published

1 year ago

June 9, 2023

Canadian job numbers came out today. Photo by Gavin Young/Postmedia

Canada’s unemployment rate rose in May for the first time since August 2022 as the labour market lost some of its steam.

The economy lost just over 17,000 jobs for the month, according to Statistics Canada, bringing the unemployment rate up to 5.2 per cent from the five per cent recorded in April. This fell short of Bay Street economists’ expectation of a gain of more than 21,000 jobs. It’s too soon to call it a trend, but further losses over the next few data releases could signal that Canada’s job market is finally starting to slow.

The labour market, which had been stubbornly robust after numerous job gains blew past economist expectations, is one of the factors the Bank of Canada keeps an eye on to determine whether the economy is in excess demand. The idea is that consumers are still spending on goods and services, forcing employers to increase their workforces to meet demand.

Jobs losses could indicate to the central bank that its aggressive pace of rate hikes are having their intended effect.

Statistics Canada’s Labour Force Survey for May comes just two days after the Bank of Canada hiked its key interest rate by another 25 basis points to 4.75 per cent, citing concerns about an economy and labour market that were hotter than expected in the first quarter.

Youth jobs led the losses in May as employment for those aged 15 to 24 fell by 77,000. The statistics agency said this could point to a slow start to students’ summer jobs season. The youth unemployment rate climbed to 10.7 per cent, its highest since October 2022.

There were also fewer jobs in areas such as business, building and other support services where positions dropped by 31,000, though employment increased in manufacturing by 13,000.

After repeatedly beating expectations over the past few months, the job market was seen as the last domino to fall before the economy found itself in more recessive territory.

Canadian Imperial Bank of Commerce economist Andrew Grantham said it might be too soon for this data to tell the central bank that the economy is meaningfully slowing down.

“Some cracks appeared within the Canadian labour market in May, but these may not yet be wide enough to convince the Bank of Canada that inflation is about to meaningfully cool off,” Grantham said in a note after the data came out, adding that average earnings rose by 5.1 per cent above the five per cent annual trend.

“The weak jobs figure will have markets paring back expectations for further interest rate hikes from the Bank of Canada, although policymakers will probably like to see some further softening ahead to convince them that no more rate increases are needed,” Grantham said.

For Royce Mendes, managing director and head of macro strategy at Desjardins, it was the break in a streak of labour market gains, but he needs to see more before he reverses his call for another rate hike this summer.

“After a long string of outsized gains in job growth, hiring apparently hit a rough patch in May,” Mendes said in a note. “While this is an ugly set of jobs data, the Labour Force Survey is notoriously volatile. As a result, we’ll take this reading with a grain of salt. It would need to be corroborated with a host of additional information to change our view that the Bank of Canada will hike again in July.”

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Business

Cineplex reports $24.7M Q3 loss on Competition Tribunal penalty

Published

4 hours ago

November 6, 2024

Anne Joseph

TORONTO – Cineplex Inc. reported a loss in its latest quarter compared with a profit a year ago as it was hit by a fine for deceptive marketing practices imposed by the Competition Tribunal.

The movie theatre company says it lost $24.7 million or 39 cents per diluted share for the quarter ended Sept. 30 compared with a profit of $29.7 million or 40 cents per diluted share a year earlier.

The results in the most recent quarter included a $39.2-million provision related to the Competition Tribunal decision, which Cineplex is appealing.

The Competition Bureau accused the company of misleading theatregoers by not immediately presenting them with the full price of a movie ticket when they purchased seats online, a view the company has rejected.

Revenue for the quarter totalled $395.6 million, down from $414.5 million in the same quarter last year, while theatre attendance totalled 13.3 million for the quarter compared with nearly 15.7 million a year earlier.

Box office revenue per patron in the quarter climbed to $13.19 compared with $12 in the same quarter last year, while concession revenue per patron amounted to $9.85, up from $8.44 a year ago.

This report by The Canadian Press was first published Nov. 6, 2024.

Companies in this story: (TSX:CGX)

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Business

Restaurant Brands reports US$357M Q3 net income, down from US$364M a year ago

Published

1 day ago

November 5, 2024

Anne Joseph

TORONTO – Restaurant Brands International Inc. reported net income of US$357 million for its third quarter, down from US$364 million in the same quarter last year.

The company, which keeps its books in U.S. dollars, says its profit amounted to 79 cents US per diluted share for the quarter ended Sept. 30 compared with 79 cents US per diluted share a year earlier.

Revenue for the parent company of Tim Hortons, Burger King, Popeyes and Firehouse Subs, totalled US$2.29 billion, up from US$1.84 billion in the same quarter last year.

Consolidated comparable sales were up 0.3 per cent.

On an adjusted basis, Restaurant Brands says it earned 93 cents US per diluted share in its latest quarter, up from an adjusted profit of 90 cents US per diluted share a year earlier.

The average analyst estimate had been for a profit of 95 cents US per share, according to LSEG Data & Analytics.

This report by The Canadian Press was first published Nov. 5, 2024.

Companies in this story: (TSX:QSR)

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Business

Electric and gas utility Fortis reports $420M Q3 profit, up from $394M a year ago

Published

1 day ago

November 5, 2024

Anne Joseph

ST. JOHN’S, N.L. – Fortis Inc. reported a third-quarter profit of $420 million, up from $394 million in the same quarter last year.

The electric and gas utility says the profit amounted to 85 cents per share for the quarter ended Sept. 30, up from 81 cents per share a year earlier.

Fortis says the increase was driven by rate base growth across its utilities, and strong earnings in Arizona largely reflecting new customer rates at Tucson Electric Power.

Revenue in the quarter totalled $2.77 billion, up from $2.72 billion in the same quarter last year.

On an adjusted basis, Fortis says it earned 85 cents per share in its latest quarter, up from an adjusted profit of 84 cents per share in the third quarter of 2023.

The average analyst estimate had been for a profit of 82 cents per share, according to LSEG Data & Analytics.

This report by The Canadian Press was first published Nov. 5, 2024.

Companies in this story: (TSX:FTS)

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