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Statistics Canada says economy added 84000 jobs in October – CTV News

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OTTAWA —
Nearly one-quarter of Canada’s unemployed have been without work for six months or more, with Statistics Canada reporting a spike in their numbers in October even as the economy eked out another month of overall job growth.

Nearly 450,000 were considered long-term unemployed last month, meaning they had been without a job for 27 weeks or more, with their ranks swelling by 79,000 in September and then 151,000 more in October.

Long-term unemployed now make up 24.8 per cent of Canada’s unemployed, who numbered 1.8 million in October, as the wave of short-term layoffs in March in April rippled into the fall.

The jumps in September and October are the sharpest over more than 40 years of comparable data, and have pushed long-term unemployment beyond what it was just over a decade ago during the global financial crisis.

More men than women have been out of work for an extended period, and younger workers make up a larger share of the ranks of the country’s long-term unemployed than they did in the last recession.

“As the pandemic lingers, and vulnerable sectors like food services continue to struggle, it’s really going to be tough to get back to normal,” said Brendon Bernard, an economist with job-posting site Indeed.

“And in the meantime, that’s going to mean definitely struggles for people who’ve been working in parts of the economy that are severely affected.”

The longer those people are out of work, the more difficult it will be for them to find a new job. And for those that do, research has shown a drop in their earnings as they settle for less than they had before.

Some older workers may simply decide to retire. Younger low-wage workers in hard-hit service sectors will have to find new work as part of a reshuffling of the workforce that could take years to play out.

Leah Nord, senior director of workforce strategies for the Canadian Chamber of Commerce, said the numbers show governments need to roll out “significant” skills training programs to those affected workers pivot to new careers.

The pace of job growth slowed in October as the economy added 83,600 jobs in the month compared with 378,000 in September, Statistics Canada said Friday. The gains marked the sixth straight month of gains after three million jobs lost over March and April when the pandemic first hit Canada hard.

The unemployment rate was little changed at 8.9 per cent compared with nine per cent in September.

The overall gains were the smallest since economies were allowed to reopen after lockdowns, noted TD senior economist Sri Thanabalasingam.

Job increases were found across several industries, including retail.

Most of the gains too were in full-time work, with core-aged women benefiting the most to bring their unemployment rate to 6.6 per cent, the lowest among the major demographic groups tracked by Statistics Canada.

But those gains were partially offset by a decrease of 48,000 jobs in the accommodation and food services industry, largely in Quebec, Statistics Canada says.

More Canadians were also working at home in October, coinciding with a rise in case counts of COVID-19.

CIBC senior economist Royce Mendes says the fact the economy posted another gain in October was good news.

“It seems like employment readings are destined to ebb and flow over the coming fall and winter months, as governments try to adjust activity in attempts to contain the virus,” he writes in a note.

Statistics Canada says the unemployment rate would have been 11.3 per cent in October had it included in calculations the 540,000 Canadians who wanted to work last month but didn’t search for a job.

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

  • Unemployment rate: 8.9 per cent (9.0)
  • Employment rate: 59.4 per cent (59.1)
  • Participation rate: 65.2 per cent (65.0)
  • Number unemployed: 1,816,800 (1,832,600)
  • Number working: 18,553,500 (18,469,900)
  • Youth (15-24 years) unemployment rate: 18.8 per cent (18.9)
  • Men (25 plus) unemployment rate: 7.8 per cent (7.8)
  • Women (25 plus) unemployment rate: 6.8 per cent (7.0)

Here are the jobless rates last month by province (numbers from the previous month in brackets):

  • Newfoundland and Labrador 12.8 per cent (14.8)
  • Prince Edward Island 10.0 per cent (10.1)
  • Nova Scotia 8.7 per cent (7.9)
  • New Brunswick 10.1 per cent (10.4)
  • Quebec 7.7 per cent (7.4)
  • Ontario 9.6 per cent (9.5)
  • Manitoba 7.1 per cent (7.0)
  • Saskatchewan 6.4 per cent (6.8)
  • Alberta 10.7 per cent (11.7)
  • British Columbia 8.0 per cent (8.4)

Statistics Canada also released seasonally adjusted, three-month moving average unemployment rates for major cities. It cautions, however, that the figures may fluctuate widely because they are based on small statistical samples. Here are the jobless rates last month by city (numbers from the previous month in brackets):

  • St. John’s, N.L. 8.8 per cent (9.8)
  • Halifax 7.7 per cent (8.4)
  • Moncton, N.B. 8.3 per cent (7.1)
  • Saint John, N.B. 10.0 per cent (10.1)
  • Saguenay, Que. 5.0 per cent (5.4)
  • Quebec City 4.5 per cent (5.0)
  • Sherbrooke, Que. 7.0 per cent (7.4)
  • Trois-Rivieres, Que. 6.0 per cent (6.3)
  • Montreal 9.6 per cent (10.7)
  • Gatineau, Que. 7.9 per cent (8.1)
  • Ottawa 8.2 per cent (8.7)
  • Kingston, Ont. 8.5 per cent (9.1)
  • Peterborough, Ont. 11.7 per cent (11.2)
  • Oshawa, Ont. 8.3 per cent (9.6)
  • Toronto 11.5 per cent (12.8)
  • Hamilton, Ont. 9.2 per cent (8.9)
  • St. Catharines-Niagara, Ont. 7.5 per cent (8.7)
  • Kitchener-Cambridge-Waterloo, Ont. 10.8 per cent (12.2)
  • Brantford, Ont. 7.2 per cent (8.1)
  • Guelph, Ont. 8.3 per cent (9.6)
  • London, Ont. 8.9 per cent (8.9)
  • Windsor, Ont. 10.8 per cent (9.8)
  • Barrie, Ont. 9.2 per cent (9.4)
  • Greater Sudbury, Ont. 7.9 per cent (8.5)
  • Thunder Bay, Ont. 7.6 per cent (8.3)
  • Winnipeg 8.7 per cent (9.4)
  • Regina 6.1 per cent (7.4)
  • Saskatoon 8.1 per cent (9.2)
  • Calgary 11.3 per cent (12.6)
  • Edmonton 12.0 per cent (12.6)
  • Kelowna, B.C. 6.2 per cent (8.0)
  • Abbotsford-Mission, B.C. 8.6 per cent (8.0)
  • Vancouver 9.7 per cent (11.1)
  • Victoria 7.6 per cent (9.1)

This report by The Canadian Press was first published Nov. 6, 2020.

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Telus prioritizing ‘most important customers,’ avoiding ‘unprofitable’ offers: CFO

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Telus Corp. says it is avoiding offering “unprofitable” discounts as fierce competition in the Canadian telecommunications sector shows no sign of slowing down.

The company said Friday it had fewer net new customers during its third quarter compared with the same time last year, as it copes with increasingly “aggressive marketing and promotional pricing” that is prompting more customers to switch providers.

Telus said it added 347,000 net new customers, down around 14.5 per cent compared with last year. The figure includes 130,000 mobile phone subscribers and 34,000 internet customers, down 30,000 and 3,000, respectively, year-over-year.

The company reported its mobile phone churn rate — a metric measuring subscribers who cancelled their services — was 1.09 per cent in the third quarter, up from 1.03 per cent in the third quarter of 2023. That included a postpaid mobile phone churn rate of 0.90 per cent in its latest quarter.

Telus said its focus is on customer retention through its “industry-leading service and network quality, along with successful promotions and bundled offerings.”

“The customers we have are the most important customers we can get,” said chief financial officer Doug French in an interview.

“We’ve, again, just continued to focus on what matters most to our customers, from a product and customer service perspective, while not loading unprofitable customers.”

Meanwhile, Telus reported its net income attributable to common shares more than doubled during its third quarter.

The telecommunications company said it earned $280 million, up 105.9 per cent from the same three-month period in 2023. Earnings per diluted share for the quarter ended Sept. 30 was 19 cents compared with nine cents a year earlier.

It reported adjusted net income was $413 million, up 10.7 per cent year-over-year from $373 million in the same quarter last year. Operating revenue and other income for the quarter was $5.1 billion, up 1.8 per cent from the previous year.

Mobile phone average revenue per user was $58.85 in the third quarter, a decrease of $2.09 or 3.4 per cent from a year ago. Telus said the drop was attributable to customers signing up for base rate plans with lower prices, along with a decline in overage and roaming revenues.

It said customers are increasingly adopting unlimited data and Canada-U.S. plans which provide higher and more stable ARPU on a monthly basis.

“In a tough operating environment and relative to peers, we view Q3 results that were in line to slightly better than forecast as the best of the bunch,” said RBC analyst Drew McReynolds in a note.

Scotiabank analyst Maher Yaghi added that “the telecom industry in Canada remains very challenging for all players, however, Telus has been able to face these pressures” and still deliver growth.

The Big 3 telecom providers — which also include Rogers Communications Inc. and BCE Inc. — have frequently stressed that the market has grown more competitive in recent years, especially after the closing of Quebecor Inc.’s purchase of Freedom Mobile in April 2023.

Hailed as a fourth national carrier, Quebecor has invested in enhancements to Freedom’s network while offering more affordable plans as part of a set of commitments it was mandated by Ottawa to agree to.

The cost of telephone services in September was down eight per cent compared with a year earlier, according to Statistics Canada’s most recent inflation report last month.

“I think competition has been and continues to be, I’d say, quite intense in Canada, and we’ve obviously had to just manage our business the way we see fit,” said French.

Asked how long that environment could last, he said that’s out of Telus’ hands.

“What I can control, though, is how we go to market and how we lead with our products,” he said.

“I think the conditions within the market will have to adjust accordingly over time. We’ve continued to focus on digitization, continued to bring our cost structure down to compete, irrespective of the price and the current market conditions.”

Still, Canada’s telecom regulator continues to warn providers about customers facing more charges on their cellphone and internet bills.

On Tuesday, CRTC vice-president of consumer, analytics and strategy Scott Hutton called on providers to ensure they clearly inform their customers of charges such as early cancellation fees.

That followed statements from the regulator in recent weeks cautioning against rising international roaming fees and “surprise” price increases being found on their bills.

Hutton said the CRTC plans to launch public consultations in the coming weeks that will focus “on ensuring that information is clear and consistent, making it easier to compare offers and switch services or providers.”

“The CRTC is concerned with recent trends, which suggest that Canadians may not be benefiting from the full protections of our codes,” he said.

“We will continue to monitor developments and will take further action if our codes are not being followed.”

French said any initiative to boost transparency is a step in the right direction.

“I can’t say we are perfect across the board, but what I can say is we are absolutely taking it under consideration and trying to be the best at communicating with our customers,” he said.

“I think everyone looking in the mirror would say there’s room for improvement.”

This report by The Canadian Press was first published Nov. 8, 2024.

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TC Energy cuts cost estimate for Southeast Gateway pipeline project in Mexico

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CALGARY – TC Energy Corp. has lowered the estimated cost of its Southeast Gateway pipeline project in Mexico.

It says it now expects the project to cost between US$3.9 billion and US$4.1 billion compared with its original estimate of US$4.5 billion.

The change came as the company reported a third-quarter profit attributable to common shareholders of C$1.46 billion or $1.40 per share compared with a loss of C$197 million or 19 cents per share in the same quarter last year.

Revenue for the quarter ended Sept. 30 totalled C$4.08 billion, up from C$3.94 billion in the third quarter of 2023.

TC Energy says its comparable earnings for its latest quarter amounted to C$1.03 per share compared with C$1.00 per share a year earlier.

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

This report by The Canadian Press was first published Nov. 7, 2024.

Companies in this story: (TSX:TRP)

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BCE reports Q3 loss on asset impairment charge, cuts revenue guidance

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BCE Inc. reported a loss in its latest quarter as it recorded $2.11 billion in asset impairment charges, mainly related to Bell Media’s TV and radio properties.

The company says its net loss attributable to common shareholders amounted to $1.24 billion or $1.36 per share for the quarter ended Sept. 30 compared with a profit of $640 million or 70 cents per share a year earlier.

On an adjusted basis, BCE says it earned 75 cents per share in its latest quarter compared with an adjusted profit of 81 cents per share in the same quarter last year.

“Bell’s results for the third quarter demonstrate that we are disciplined in our pursuit of profitable growth in an intensely competitive environment,” BCE chief executive Mirko Bibic said in a statement.

“Our focus this quarter, and throughout 2024, has been to attract higher-margin subscribers and reduce costs to help offset short-term revenue impacts from sustained competitive pricing pressures, slow economic growth and a media advertising market that is in transition.”

Operating revenue for the quarter totalled $5.97 billion, down from $6.08 billion in its third quarter of 2023.

BCE also said it now expects its revenue for 2024 to fall about 1.5 per cent compared with earlier guidance for an increase of zero to four per cent.

The company says the change comes as it faces lower-than-anticipated wireless product revenue and sustained pressure on wireless prices.

BCE added 33,111 net postpaid mobile phone subscribers, down 76.8 per cent from the same period last year, which was the company’s second-best performance on the metric since 2010.

It says the drop was driven by higher customer churn — a measure of subscribers who cancelled their service — amid greater competitive activity and promotional offer intensity. BCE’s monthly churn rate for the category was 1.28 per cent, up from 1.1 per cent during its previous third quarter.

The company also saw 11.6 per cent fewer gross subscriber activations “due to more targeted promotional offers and mobile device discounting compared to last year.”

Bell’s wireless mobile phone average revenue per user was $58.26, down 3.4 per cent from $60.28 in the third quarter of the prior year.

This report by The Canadian Press was first published Nov. 7, 2024.

Companies in this story: (TSX:BCE)

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