Hamilton’s unemployment rate dropped for a second straight month, showing additional recovery from significant drops earlier in the year amid the COVID-19 pandemic.
Statistics Canada’s (StatCan) latest data shows the jobless rate fell to 10 per cent in August compared to 11.3 per cent in June.
The region’s numbers surged during the coronavirus pandemic from 4.9 per cent in February to 12.1 per cent at the end of June.
The agency says 10,800 jobs were added to the region in August, however, the city is still down 27,700 jobs compared to August of 2019.
President and CEO of the Hamilton Chamber of Commerce Keanin Loomis says the number shows “cautious optimism” for the regional economy.
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“The wage subsidies and other programs from the government has helped tremendously. I know it’s helped us as an organization and many others through this time,” said Loomis.
However, Loomis says there’s still some uncertainty with the businesses he works with since economic indicators typically “lag in time.”
“We still haven’t quite seen exactly the full impacts of COVID-19,” Loomis said.
“My biggest concern is actually going to be 2021 once government programs run out.”
Ontario added 142,000 new jobs putting the provincial jobless rate at 10.6 percent.
In Niagara, the unemployment rate fell to 11.3 per cent compared to the 12.5 per cent in July with the addition of 8,200 new jobs.
Niagara is still down about 15,100 jobs compared to July of 2019.
During the pandemic, Niagara has been the second hardest-hit region in Ontario, losing close to 32,000 (15.6 per cent) of its jobs between February and June.
3:50 Latest job numbers indicate Canada’s economy on the rebound
Latest job numbers indicate Canada’s economy on the rebound
Canada adds another 246K jobs
StatCan national numbers also showed a dip as the unemployment rate slid to 10.2 per cent in August compared to 10.9 per cent in July. In May, the country had a record high of 13.7 per cent.
The labour market gained another 246,000 jobs in August, tapering off from the 419,000 jobs added in July as more parts of the economy were allowed to reopen amid the coronavirus.
StatCan says the number of Canadians working from home also declined for the fourth consecutive month. During the peak of the pandemic in May, 3.4 million Canadians worked from home. That number dropped to 2.5 million in August.
Temporary layoffs, which reached a pandemic peak of 1.2 million in April, fell again in August. In July, there were 460,000 on a layoff. That number dropped to 230,000 in August.
TORONTO – Canada’s main stock index was higher in late-morning trading, helped by strength in energy stocks, while U.S. stock markets also moved up.
The S&P/TSX composite index was up 34.91 points at 23,736.98.
In New York, the Dow Jones industrial average was up 178.05 points at 41,800.13. The S&P 500 index was up 28.38 points at 5,661.47, while the Nasdaq composite was up 133.17 points at 17,725.30.
The Canadian dollar traded for 73.56 cents US compared with 73.57 cents US on Monday.
The November crude oil contract was up 68 cents at US$69.70 per barrel and the October natural gas contract was up three cents at US$2.40 per mmBTU.
The December gold contract was down US$7.80 at US$2,601.10 an ounce and the December copper contract was up a penny at US$4.28 a pound.
This report by The Canadian Press was first published Sept. 17, 2024.
OTTAWA – Canada’s inflation rate fell to two per cent last month, finally hitting the Bank of Canada’s target after a tumultuous battle with skyrocketing price growth.
The annual inflation rate fell from 2.5 per cent in July to reach the lowest level since February 2021.
Statistics Canada’s consumer price index report on Tuesday attributed the slowdown in part to lower gasoline prices.
Clothing and footwear prices also decreased on a month-over-month basis, marking the first decline in the month of August since 1971 as retailers offered larger discounts to entice shoppers amid slowing demand.
The Bank of Canada’s preferred core measures of inflation, which strip out volatility in prices, also edged down in August.
The marked slowdown in price growth last month was steeper than the 2.1 per cent annual increase forecasters were expecting ahead of Tuesday’s release and will likely spark speculation of a larger interest rate cut next month from the Bank of Canada.
“Inflation remains unthreatening and the Bank of Canada should now focus on trying to stimulate the economy and halting the upward climb in the unemployment rate,” wrote CIBC senior economist Andrew Grantham.
Benjamin Reitzes, managing director of Canadian rates and macro strategist at BMO, said Tuesday’s figures “tilt the scales” slightly in favour of more aggressive cuts, though he noted the Bank of Canada will have one more inflation reading before its October rate announcement.
“If we get another big downside surprise, calls for a 50 basis-point cut will only grow louder,” wrote Reitzes in a client note.
The central bank began rapidly hiking interest rates in March 2022 in response to runaway inflation, which peaked at a whopping 8.1 per cent that summer.
The central bank increased its key lending rate to five per cent and held it at that level until June 2024, when it delivered its first rate cut in four years.
A combination of recovered global supply chains and high interest rates have helped cool price growth in Canada and around the world.
Bank of Canada governor Tiff Macklem recently signalled that the central bank is ready to increase the size of its interest rate cuts, if inflation or the economy slow by more than expected.
Its key lending rate currently stands at 4.25 per cent.
CIBC is forecasting the central bank will cut its key rate by two percentage points between now and the middle of next year.
The U.S. Federal Reserve is also expected on Wednesday to deliver its first interest rate cut in four years.
This report by The Canadian Press was first published Sept. 17, 2024.
FREDERICTON – New Brunswick‘s finance minister says the province recorded a surplus of $500.8 million for the fiscal year that ended in March.
Ernie Steeves says the amount — more than 10 times higher than the province’s original $40.3-million budget projection for the 2023-24 fiscal year — was largely the result of a strong economy and population growth.
The report of a big surplus comes as the province prepares for an election campaign, which will officially start on Thursday and end with a vote on Oct. 21.
Steeves says growth of the surplus was fed by revenue from the Harmonized Sales Tax and federal money, especially for health-care funding.
Progressive Conservative Premier Blaine Higgs has promised to reduce the HST by two percentage points to 13 per cent if the party is elected to govern next month.
Meanwhile, the province’s net debt, according to the audited consolidated financial statements, has dropped from $12.3 billion in 2022-23 to $11.8 billion in the most recent fiscal year.
Liberal critic René Legacy says having a stronger balance sheet does not eliminate issues in health care, housing and education.
This report by The Canadian Press was first published Sept. 16, 2024.
