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Canada’s economy loses 40,000 jobs; unemployment rate jumps to 5.4%

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Canada’s economy shed an unexpected, outsized number of jobs in August for the third consecutive month, another indication that growth is slowing as the Bank of Canada attempts to deliver a soft landing while wrestling exceptionally high inflation down to more normal levels.

The country lost 40,000 jobs last month while the unemployment rate rose to 5.4 per cent, Statistics Canada reported on Sept. 9.

August’s headline numbers quashed higher expectations from economists, who predicted the labour market would add 15,000 positions and the unemployment rate would tick up from 4.9 per cent in July to five per cent.

The consecutive losses over the past three months amount to 114,000, marking the first period in the pandemic of declines unrelated to lockdowns and restrictions. It’s also a phenomenon that historically does not occur outside of a recession, Desjardins head of macro strategy Royce Mendes noted.

“While revisions can always change the picture down the road, the deterioration in the job market appears to be occurring faster than anticipated,” Mendes wrote in a client note.

Here’s what you need to know:

The declines

The job losses were mostly concentrated in the public sector, particularly education, which lost 50,000 jobs. Some of those drops in schools and educational institutions could reverse when data for September comes out, reflecting the back-to-school season. The public sector has borne the brunt of the jobs decline over the summer, losing 79,000 positions of the 114,000 overall in the past three months. But, it could be overstating broader weakness since it reflects a reversal in the hiring surge during the pandemic, Stephen Brown, senior economist at Capital Economics, said in a note.

Economists pinned the previous declines in June and July on growing retirements and job seasonality, but those arguments “are no longer as convincing,” Brown wrote.

Though half the industries Statistics Canada tracks posted gains in August, construction shed 28,000 jobs, following the Bank of Canada’s rare 100-basis-point hike the previous month. It was a notable drop, highlighting the sector’s relationship with the central bank’s efforts to curb demand amid high inflation.

Higher interest rates cooled housing markets almost immediately and building permits declined in July, showing just how sensitive Canada’s real estate sector is to the central bank’s moves. “Higher interest rates mean projects get canceled as developers cannot secure financing and buyers hold back,” Tu Nguyen, economist at accounting and consultancy firm RSM Canada, said.

The increases

The rise in the unemployment rate was the first in seven months and the first that didn’t coincide with pandemic lockdowns or restrictions. In June, the unemployment rate dropped below five per cent to 4.9 per cent, the lowest rate on record, and held steady in July, despite job losses. Employment declines and labour force growth, up by 66,000, contributed to the half-percentage-point increase, which is still in a range that some economists deem as full employment — that is, anyone who wants a job either has it or can get it.

Despite a rise in the unemployment rate, which would naturally lead to a decrease in pay, average hourly wages were up 5.4 per cent last month from August 2021 compared to 5.2 per cent year over year in June and July. That should catch the eye of policymakers at the Bank of Canada, who are trying to prevent high inflation expectations from becoming entrenched in the economy. If people think prices will continue to rise, they will demand raises, which can lead to businesses increasing sticker prices — a cycle governor Tiff Macklem has said he is trying to curb.

The number of hours worked were also unchanged in August, adding to inflationary worries. “The longer term trend in wage growth confirms the impression that the job market remains very tight. Add in poor productivity growth and the combination of the two is disconcerting if the aim is to get the cost of living under control,” Derek Holt, head of capital markets economics at Bank of Nova Scotia, wrote in a note.

Bottom line

August’s data could fuel worries over the economy’s slowing growth and the possibility of a recession. Typically, it can take a few quarters before the effects of higher interest rates are felt throughout the economy, but the jobs report is another signal that it may be happening sooner than expected. Gross domestic product lost momentum in the second quarter, rising 3.3 per cent when policymakers expected four-per-cent growth and economists expected 4.4-per-cent growth, for example.

“There is no debating that conditions are cooling quickly, with the pullback in construction a clear indication that rate hikes are beginning to bite,” Douglas Porter, chief economist at Bank of Montreal, wrote in a note.

Governor Macklem and his deputies will be walking a fine line when the Governing Council issues its next rate decision. Inflation pulled back in July, but mainly due to receding energy prices, while prices of goods and services accelerated.

“That cooling fits neatly with the view that the Bank of Canada will further moderate the pace of hikes and may indeed be getting close to the peak (we see another 50 bps of total rate hikes from here). However, the steady upward grind in wage growth and the stability in overall hours worked suggest that the bank won’t back down anytime soon,” Porter said.

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Stop Asking Your Interviewer Cliché Questions

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Most job search advice is cookie-cutter. The advice you’re following is almost certainly the same advice other job seekers follow, making you just another candidate following the same script.

In today’s hyper-competitive job market, standing out is critical, a challenge most job seekers struggle with. Instead of relying on generic questions recommended by self-proclaimed career coaches, which often lead to a forgettable interview, ask unique, thought-provoking questions that’ll spark engaging conversations and leave a lasting impression.

English philosopher Francis Bacon once said, “A prudent question is one half of wisdom.”

The questions you ask convey the following:

  • Your level of interest in the company and the role.
  • Contributing to your employer’s success is essential.
  • You desire a cultural fit.

Here are the top four questions experts recommend candidates ask; hence, they’ve become cliché questions you should avoid asking:

  • “What are the key responsibilities of this position?”

Most likely, the job description answers this question. Therefore, asking this question indicates you didn’t read the job description. If you require clarification, ask, “How many outbound calls will I be required to make daily?” “What will be my monthly revenue target?”

  • “What does a typical day look like?”

Although it’s important to understand day-to-day expectations, this question tends to elicit vague responses and rarely leads to a deeper conversation. Don’t focus on what your day will look like; instead, focus on being clear on the results you need to deliver. Nobody I know has ever been fired for not following a “typical day.” However, I know several people who were fired for failing to meet expectations. Before accepting a job offer, ensure you’re capable of meeting the employer’s expectations.

  • “How would you describe the company culture?”

Asking this question screams, “I read somewhere to ask this question.” There are much better ways to research a company’s culture, such as speaking to current and former employees, reading online reviews and news articles. Furthermore, since your interviewer works for the company, they’re presumably comfortable with the culture. Do you expect your interviewer to give you the brutal truth? “Be careful of Craig; get on his bad side, and he’ll make your life miserable.” “Bob is close to retirement. I give him lots of slack, which the rest of the team needs to pick up.”

Truism: No matter how much due diligence you do, only when you start working for the employer will you experience and, therefore, know their culture firsthand.

  • “What opportunities are there for professional development?”

When asked this question, I immediately think the candidate cares more about gaining than contributing, a showstopper. Managing your career is your responsibility, not your employer’s.

Cliché questions don’t impress hiring managers, nor will they differentiate you from your competition. To transform your interaction with your interviewer from a Q&A session into a dynamic discussion, ask unique, insightful questions.

Here are my four go-to questions—I have many moreto accomplish this:

  • “Describe your management style. How will you manage me?”

This question gives your interviewer the opportunity to talk about themselves, which we all love doing. As well, being in sync with my boss is extremely important to me. The management style of who’ll be my boss is a determining factor in whether or not I’ll accept the job.

  • “What is the one thing I should never do that’ll piss you off and possibly damage our working relationship beyond repair?”

This question also allows me to determine whether I and my to-be boss would be in sync. Sometimes I ask, “What are your pet peeves?”

  • “When I join the team, what would be the most important contribution you’d want to see from me in the first six months?”

Setting myself up for failure is the last thing I want. As I mentioned, focus on the results you need to produce and timelines. How realistic are the expectations? It’s never about the question; it’s about what you want to know. It’s important to know whether you’ll be able to meet or even exceed your new boss’s expectations.

  • “If I wanted to sell you on an idea or suggestion, what do you need to know?”

Years ago, a candidate asked me this question. I was impressed he wasn’t looking just to put in time; he was looking for how he could be a contributing employee. Every time I ask this question, it leads to an in-depth discussion.

Other questions I’ve asked:

 

  • “What keeps you up at night?”
  • “If you were to leave this company, who would follow?”
  • “How do you handle an employee making a mistake?”
  • “If you were to give a Ted Talk, what topic would you talk about?”
  • “What are three highly valued skills at [company] that I should master to advance?”
  • “What are the informal expectations of the role?”
  • “What is one misconception people have about you [or the company]?”

 

Your questions reveal a great deal about your motivations, drive to make a meaningful impact on the business, and a chance to morph the questioning into a conversation. Cliché questions don’t lead to meaningful discussions, whereas unique, thought-provoking questions do and, in turn, make you memorable.

_____________________________________________________________________

 

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.

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Canadian Natural Resources reports $2.27-billion third-quarter profit

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CALGARY – Canadian Natural Resources Ltd. reported a third-quarter profit of $2.27 billion, down from $2.34 billion in the same quarter last year.

The company says the profit amounted to $1.06 per diluted share for the quarter that ended Sept. 30 compared with $1.06 per diluted share a year earlier.

Product sales totalled $10.40 billion, down from $11.76 billion in the same quarter last year.

Daily production for the quarter averaged 1,363,086 barrels of oil equivalent per day, down from 1,393,614 a year ago.

On an adjusted basis, Canadian Natural says it earned 97 cents per diluted share for the quarter, down from an adjusted profit of $1.30 per diluted share in the same quarter last year.

The average analyst estimate had been for a profit of 90 cents per share, according to LSEG Data & Analytics.

This report by The Canadian Press was first published Oct. 31, 2024.

Companies in this story: (TSX:CNQ)

The Canadian Press. All rights reserved.

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Cenovus Energy reports $820M Q3 profit, down from $1.86B a year ago

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CALGARY – Cenovus Energy Inc. reported its third-quarter profit fell compared with a year as its revenue edged lower.

The company says it earned $820 million or 42 cents per diluted share for the quarter ended Sept. 30, down from $1.86 billion or 97 cents per diluted share a year earlier.

Revenue for the quarter totalled $14.25 billion, down from $14.58 billion in the same quarter last year.

Total upstream production in the quarter amounted to 771,300 barrels of oil equivalent per day, down from 797,000 a year earlier.

Total downstream throughput was 642,900 barrels per day compared with 664,300 in the same quarter last year.

On an adjusted basis, Cenovus says its funds flow amounted to $1.05 per diluted share in its latest quarter, down from adjusted funds flow of $1.81 per diluted share a year earlier.

This report by The Canadian Press was first published Oct. 31, 2024.

Companies in this story: (TSX:CVE)

The Canadian Press. All rights reserved.

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