Canada unemployment rate: 5.5% increase July | Canada News Media
Connect with us

Business

Canada unemployment rate: 5.5% increase July

Published

 on

OTTAWA –

Canada’s labour market is softening as the unemployment rate rises for a third consecutive month, offering some evidence the economy is finally slowing down.

Statistics Canada reported Friday employment was little changed in July, falling by 6,400 jobs. Meanwhile, the unemployment rate ticked up to 5.5 per cent as the economy struggles to create enough jobs to match the pace of population growth.

The federal agency says job losses last month were led by the construction industry, while the greatest job gains were made in health care and social assistance.

May served as a turning point in the labour market: the unemployment rate rose for the first time in nine months. Prior to that, the unemployment rate was hovering at five per cent, just above the all-time low of 4.9 per cent reached last summer.

As Canada’s population continues to grow rapidly, rising unemployment signals the economy isn’t creating enough jobs to absorb a larger workforce.

“We’ve seen a consistent increase in the number of people without a job in Canada, but people that are still in the labour force,” said James Orlando, TD’s director of economics.

Job vacancies have also declined in the country, offering another sign that the labour market is loosening.

Orlando says high population growth is helping the economy stay afloat as newcomers add to demand. So instead of high interest rates leading to outright job losses, Orlando says the unemployment rate is rising.

“When people come to Canada, even if they don’t get a job right away, they’re consumers, right? They’re looking for housing, they need to buy food, they need to buy clothes. And so they’re buying stuff within the economy. And that is a demand shock,” Orlando said.

“It’s putting a floor under the economy at a time when most people would have thought it would be contracting.”

The Canadian economy has outperformed expectations this year, pushing the Bank of Canada to raise interest rates again in both June and July.

By raising the cost of borrowing for consumers and businesses, the central bank is hoping the economy will slow enough to bring inflation back to its two per cent target.

With the central bank’s key interest rate now sitting at five per cent — the highest it’s been since 2001 — all eyes are on what it chooses to do in September.

Orlando says the economic outlooks suggests the Bank of Canada doesn’t need to raise interest rates again next month.

TD’s updated forecasts suggest the economy will continue to slow, pushing up the unemployment rate to 6.5 per cent in the fourth quarter of 2024.

“Every single day that goes by, more and more people are going to be impacted by the rising cost of housing, specifically on rising mortgage rates, and so it’s going to force a lot of people to adjust their spending habits,” Orlando said.

BMO’s chief economist, Douglas Porter also agrees that the chances of a rate hike in September are falling.

“The soft July employment report is just the latest arrow in the quiver of signs that the economy is losing momentum. Along with the recent friendly CPI result, we believe that the case for the Bank of Canada moving to the sidelines is now very strong,” Porter wrote in a client note.

But with underlying price pressures and wage growth still high, Porter said rates may have to stay high for long.

Inflation in June fell to 2.8 per cent, within the Bank of Canada’s target range of one to three per cent. But core measures of inflation which strip out volatility show prices are still rising quickly and new forecasts from the central bank suggest it expects inflation to get back to two per cent by mid-2025.

The central bank has also raised concerns about the pace of wage growth, noting rapid wage gains would make it challenging to get inflation back to target.

But Orlando says wage growth is a “lagging indicator,” meaning workers are getting wage increases to reflect the rapid rise of inflation that already occurred. But falling job vacancies and rising unemployment suggest high wage growth won’t persist.

“These are the best indicators that you’re not going to get keep wages growing at this five per cent level going forward or into perpetuity, they’re going to ease based on the fact that the labour market is clearly loosening,” Orlando said.

A quick look at Canada’s July employment (numbers from the previous month in brackets):

  • Unemployment rate: 5.5 per cent (5.4)
  • Employment rate: 62.0 per cent (62.2)
  • Participation rate: 65.6 per cent (65.7)
  • Number unemployed: 1,166,800 (1,147,100)
  • Number working: 20,166,400 (20,172,800)
  • Youth (15-24 years) unemployment rate: 10.2 per cent (11.5)
  • Men (25 plus) unemployment rate: 4.6 per cent (4.4)
  • Women (25 plus) unemployment rate: 4.8 per cent (4.4)

Here’s a quick glance at unemployment rates for July, by province:

  • Newfoundland and Labrador 8.7 per cent (8.8)
  • Prince Edward Island 8.1 per cent (8.2)
  • Nova Scotia 7.7 per cent (6.4)
  • New Brunswick 6.2 per cent (6.4)
  • Quebec 4.5 per cent (4.4)
  • Ontario 5.6 per cent (5.7)
  • Manitoba 4.9 per cent (4.3)
  • Saskatchewan 5.1 per cent (4.7)
  • Alberta 6.1 per cent (5.7)
  • British Columbia 5.4 per cent (5.6)

 

Source link

Continue Reading

Business

CANADIAN ACCOUNTANTS TELL ALL ON STATE OF SMB FINANCES IN NEW SURVEY

Published

 on

CANADIAN ACCOUNTANTS TELL ALL ON STATE OF SMB FINANCES IN NEW SURVEY
Accountants “open the books” on inflation, interest rates, technology, and lack of SMB support

TORONTO – Nov. 19, 2024 – A recent survey of 500 Canadian accountants has revealed several surprising conclusions about their frustrations, fears, thoughts on provincial support for SMBs, the investments that make them wary, and how many clients are actually using the financial technology they need.

And for a little fun, the survey even identified which Canadian celebrity they would back as an SMB CEO.

The survey conducted on behalf of Plooto, a leading payment automation solution for small-to-midsize businesses (SMBs), asked accountants, bookkeepers, and finance professionals a series of revealing questions that provide a snapshot of the current state of Canada’s accounting industry.

Key Findings of the Survey:

  1. IT’S HARD OUT THERE FOR AN SMB

    Asked what they think are the biggest financial threats to Canadian SMBs, more than half of Canadian accountants (54.5%) said ‘inflation increasing their own costs.’ This was followed by interest rates making borrowing rates more expensive (46.1%); staff turnover (41.2%); lower prices offered by larger corporations in the same space (39%); interest rates cooling on consumer spending (34.1%) and foreign competition (32%).

 

  1. ACCOUNTANTS CALL OUT ONTARIO’S SMB SUPPORT

    Asked which province they think is doing the least to help SMBs succeed, a definitive quarter (24.5%) of accountants cited Ontario. Quebec was a distant second at 15%; followed by Alberta (13.3%);  BC (11.4%); Manitoba and Newfoundland and Labrador (tied at 7.25%); Saskatchewan (5.9%); and New Brunswick and PEI (tied at 4.9%). Accountants considered Nova Scotia as the province doing the most for SMBs, with the lowest vote of 4%.

 

  1. ACCOUNTANTS SHINE THE LIGHT ON COSTLY SMB MISTAKES

    Asked what the biggest financial mistake they see Canadian SMBs make on a regular basis, 21% of Canadian accountants said ‘not implementing the proper technology.’ This was followed by ‘not paying enough attention to cash flow’ (19%); investing in elaborate and expensive workplaces (12.2%); hiring too quickly (10.6%);   buying rather than leasing equipment (10%); overpaying to attract a top-tier executive (9.8%); hiring too slowly (9.2%);  and funding the first year with non-submitted HST payments (8.0%).

 

  1. ACCOUNTANTS HESITATE TO ADVISE INVESTMENT IN ENTERTAINMENT AND EDUCATION

    Based on the profitability of their current clients, accountants said they would NEVER invest in:  arts, entertainment and recreation (32.2%), educational services (24.5%), travel and hospitality (22.9%), agriculture, forestry, fishing and hunting (19.8%) and; finance and insurance (19.6%).

 

  1. THE ECONOMY IS CLEARLY KEEPING ACCOUNTANTS UP AT NIGHT

    Asked to choose the factors that are keeping them up at night, 48.8% said ‘current interest rates,’ followed by ‘fear of a recession’ (46.7%); ‘worry that their SMB clients will go under’ (29.6%); the current Federal Government (27.3%); ‘another pandemic’ (26.9%); the 2024 U.S. elections (25.3%.) and; ‘a different Federal Government coming into power’ (25.1%).

 

  1. ACCOUNTANT IRRITATIONS UP CLOSE

    Asked what the most irritating things their clients do on a regular basis are, Canadian accountants said ‘not sending required information’ (64.7%); not reading financial reports (50.2%); not making time to discuss financial reports (48.4%); not paying invoices on time (47.8%); submitting information with ‘bad math’ (44.5%) and; not listening to recommendations (44.3%).

 

  1. SMBs DON’T HAVE ALL OF THE TECH RESOURCES THEY NEED

Accountants say less than a third (31.4%) of clients have all of the tech in place that they need, despite its far-reaching benefits.
When their clients use fintech, 65.1% of clients can reconcile their books faster, and 56% can make and receive payments faster.

Bonus Insight:

RYAN REYNOLDS COULD RULE THE C-SUITE

Asked which Canadian celebrity they thought would be the most effective in running a SMB, nearly a quarter of Canadian accountants said Ryan Reynolds (27.1%). Reynolds edged out business celebrity Kevin O’Leary (22%) and left Keanu Reeves (15.3%), Drake (12.6%), Arlene Dickenson (8.6%), and Michele Romano (4.1%) as distant alternatives.

PLEASE REFER TO THIS AS A SURVEY BY PLOOTO IN ANY MEDIA MENTIONS

Continue Reading

Business

Which Candidate Would You Hire? A or B?

Published

 on

Speaking from personal experience, a bad hire isn’t a good look. The last thing you want is to hear, “Who the hell hired Bob?” and have your hiring judgment questioned.

The job seeker who’s empathetic to the employer’s side of the hiring desk, which controls the hiring process, is rare.

One of the best things you can do to enhance your job search is to practice perspective-taking, which involves seeing things from a different perspective.

It’s natural for employers to find candidates who have empathy and an understanding of their challenges and pain points more attractive. Candidates like these are seen as potential allies rather than individuals only looking out for themselves. Since most job seekers approach employers with a ‘what’s in it for me’ mindset, practicing perspective-taking sets you apart.

“If there is any one secret of success, it lies in the ability to get the other person’s point of view and see things from that person’s angle as well as from your own.” – Henry Ford.

Perspective-taking makes you realize that from an employer’s POV hiring is fraught with risks employers want to avoid; thus, you consider what most job seekers don’t: How can I present myself as the least risky hiring option?

Here’s an exercise that’ll help you visualize the employer’s side of the hiring process.

 

Candidate A or B?

Imagine you’re the Director of Customer Service for a regional bank with 85 branches. You’re hiring a call centre manager who’ll work onsite at the bank’s head office, overseeing the bank’s 50-seat call centre. In addition to working with the call centre agents, the successful candidate will also interact with other departments, your boss, and members of the C-suite leadership team; in other words, they’ll be visible throughout the bank.

The job posting resulted in over 400 applications. The bank’s ATS and HR (phone interview vetting, skill assessment testing) selected five candidates, plus an employee referral, for you to interview. You aim to shortlist the six candidates to three, whom you’ll interview a second time, and then make a hiring decision. Before scheduling the interviews, which’ll take place between all your other ongoing responsibilities, you spend 5 – 10 minutes with each candidate’s resume and review their respective digital footprint and LinkedIn activity.

In your opinion, which candidate deserves a second interview?

Candidate A: Their resume provides quantitative numbers—evidence—of the results they’ve achieved. (Through enhanced agent training, reduced average handle time from 4:32 mins. to 2:43 minutes, which decreased the abandon rate from 4.6% to 2.2%.)

 

Candidate B: Their resume offers only opinions. (“I’m detail-oriented,” “I learn fast.”)

 

Candidate A: Looks you in the eye, has a firm handshake, smiles, and exudes confidence.

 

Candidate B: Doesn’t look you in the eye, has a weak handshake.

 

Candidate A: Referred by Ariya, who’s been with the bank for over 15 years and has a stellar record, having moved up from teller to credit analyst and is tracking to become a Managing Director.

 

Candidate B: Applied online. Based on your knowledge, they did nothing else to make their application more visible. (e.g., reached out to you or other bank employees)

 

Candidate A:  Well educated, grew up as a digital native, eager and energetic. Currently manages a 35-seat call center for a mid-size credit union. They mention they called the bank’s call centre several times and suggest ways to improve the caller experience.

 

Candidate B: Has been working in banking for over 25 years, managing the call center at their last bank for 17 years before being laid off eight months ago. They definitely have the experience to run a call centre. However, you have a nagging gut feeling that they’re just looking for a place to park themselves until they can afford to retire.

 

Candidate A: Has a fully completed LinkedIn profile (picture, eye-catching banner) packed with quantifying numbers. It’s evident how they were of value to their employers. Recently, they engaged constructively with posts and comments and published a LinkedIn article on managing Generations Y and Z call centre agents. Their Facebook, Instagram, and Twitter/X accounts aren’t controversial, sharing between ‘Happy Birthday’ and ‘Congratulations’ messages, their love of fine dining, baseball, and gardening.

 

Candidate B: Their LinkedIn profile is incomplete. The last time they posted on LinkedIn was seven months ago, ranting about how the government’s latest interest rate hike will plunge the country into a deep recession. Conspiracy theories abound on their Facebook page.

 

Candidate A: Notices the golf calendar on your desk, the putter and golf balls in the corner, and a photograph of Phil Mickelson putting on the green jacket at the 2010 Masters hanging on your wall. While nodding towards the picture, they say, “Evidently, you golf. Not being a golfer myself, what made you take up golf, which I understand is a frustrating sport?”

 

Candidate B: Doesn’t proactively engage in small talk. Waits for you to start the interview.

 

Which of the above candidates presents the least hiring risk? Will likely succeed (read: achieve the results the employer needs)? Will show your boss, upper management, and employees you know how to hire for competence and fit?

_____________________________________________________________________

 

Nick Kossovan, a well-seasoned veteran of the corporate landscape, offers “unsweetened” job search advice. You can send Nick your questions to artoffindingwork@gmail.com.

Continue Reading

Business

Job Seekers’ Trinity Focus, Anger and Evidence

Published

 on

Though I have no empirical evidence to support my claim, I believe job search success can be achieved faster by using what I call “The Job Seekers’ Trinity” as your framework, the trinity being:

 

  1. The power of focus
  2. Managing your anger
  3. Presenting evidence

Each component plays a critical role in sustaining motivation and strategically positioning yourself for job search success. Harnessing your focus, managing your anger, and presenting compelling evidence (read: quantitative numbers of achieved results) will transform your job search from a daunting endeavour into a structured, persuasive job search campaign that employers will notice.

 

The Power of Focus

Your job search success is mainly determined by what you’re focused on, namely:

 

  • What you focus on.

 

Your life is controlled by what you focus on; thus, focusing on the positives shapes your mindset for positive outcomes. Yes, layoffs, which the media loves to report to keep us addicted to the news, are a daily occurrence, but so is hiring. Don’t let all the doom and gloom talk overshadow this fact. Focus on where you want to go, not on what others and the media want you to fear.

 

Bonus of not focusing on negatives: You’ll be happier.

 

  • Focus on how you can provide measurable value to employers.

 

If you’re struggling with your job search, the likely reason is that you’re not showing, along with providing evidence, employers how you can add tangible value to an employer’s bottom line. Business is a numbers game, yet few job seekers speak about their numbers. If you don’t focus on and talk about your numbers, how do you expect employers to see the value in hiring you?

 

Managing Your Anger

Displaying anger in public is never a good look. Professionals are expected to control their emotions, so public displays of anger are viewed as unprofessional.

LinkedIn has become a platform heavily populated with job seekers posting angry rants—fueled mainly by a sense of entitlement—bashing and criticizing employers, recruiters, and the government, proving many job seekers think the public display of their anger won’t negatively affect their job search.

When you’re unemployed, it’s natural to be angry when your family, friends, and neighbours are employed. “Why me?” is a constant question in your head. Additionally, job searching is fraught with frustrations, such as not getting responses to your applications and being ghosted after interviews.

The key is acknowledging your anger and not letting it dictate your actions, such as adding to the angry rants on LinkedIn and other social media platforms, which employers will see.

 

Undoubtedly, rejection, which is inevitable when job hunting, causes the most anger. What works for me is to reframe rejections, be it through being ghosted, email, a call or text, as “Every ‘No’ brings me one step closer to a ‘Yes.'”

 

Additionally, I’ve significantly reduced triggering my anger by eliminating any sense of entitlement and keeping my expectations in check. Neither you nor I are owed anything, including a job, respect, empathy, understanding, agreement, or even love. A sense of entitlement and anger are intrinsically linked. The more rights you perceive you have, the more anger you need to defend them. Losing any sense of entitlement you may have will make you less angry, which has no place in a job search.

 

Presenting Evidence

As I stated earlier, business is a numbers game. Since all business decisions, including hiring, are based on numbers, presenting evidence in the form of quantitative numbers is crucial.

Which candidate would you contact to set up an interview if you were hiring a social media manager:

 

  • “Managed Fabian Publishing’s social media accounts, posting content daily.”
  • “Designed and executed Fabian Publishing’s global social media strategy across 8.7 million LinkedIn, X/Twitter, Instagram and Facebook followers. Through consistent engagement with customers, followers, and influencers, increased social media lead generation by 46% year-over-year, generating in 2023 $7.6 million in revenue.”

 

Numerical evidence, not generic statements or opinions, is how you prove your value to employers. Stating you’re a “team player” or “results-driven,” as opposed to “I’m part of an inside sales team that generated in 2023 $8.5 million in sales,” or “In 2023 I managed three company-wide software implementations, all of which came under budget,” is meaningless to an employer.

Despite all the job search advice offered, I still see resumes and LinkedIn profiles listing generic responsibilities rather than accomplishments backed by numbers. A statement such as “managed a team” doesn’t convey your management responsibilities or your team’s achievements under your leadership. “Led a team of five to increase sales by 20%, from $3.7 million to $4.44 million, within six months” shows the value of your management skills.

Throughout your job search, constantly think of all the numbers you can provide—revenue generated, number of new clients, cost savings, reduced workload, waste reduction—as evidence to employers why you’d be a great value-add to their business.

The Job Seekers’ Trinity—focusing on the positive, managing your anger and providing evidence—is a framework that’ll increase the effectiveness of your job search activities and make you stand out in today’s hyper-competitive job market, thus expediting your job search to a successful conclusion.

_____________________________________________________________________

 

Nick Kossovan, a well-seasoned veteran of the corporate landscape, offers “unsweetened” job search advice. You can send Nick your questions to artoffindingwork@gmail.com.

Continue Reading

Trending

Exit mobile version