Re: PFTF Jan 26 2012
Canadian labour market weakest in non-slump periods in decades, CIBC says



Canada's job market is in bad shape and may be the worst it has been in decades, except for the periods when the economy was in recession.

That's the assessment of the CIBC chartered bank, which regularly tries to assess both the number and quality of jobs being created in the economy.

According to its latest "employment quality index," which declined by one point in the past year, CIBC says the situation is bleak by either standard.

It says not only has jobs growth stalled over the past half year — and declined in real terms over the past three months — but the quality of new jobs is generally poor.

While full-time employment rose 1.5 per cent during the 12 months — a good indicator — many were in the less desirable self-employment class, and low-paying work rose four times faster than high-paying, CIBC senior economist Benjamin Tal said Wednesday.

"With both quantity and quality of employment falling in tandem, it is hardly a surprise that real disposable income was unchanged in the first three quarters (nine months) of 2011 — the worst showing in 15 years," Tal said.

"We haven't seen this kind of softening in a non-recessionary period since all the way back to the 1970s."

The paper says many new jobs in the past year have come in low-paying sectors such as hotel services, restaurants, wood and miscellaneous manufacturing, and personal care. Meanwhile, there are fewer high-paying jobs in public administration as well as in manufacturing, chemical, computer, electronic, petroleum and coal industries, mining and transportation.

The report is the latest in a series of indicators pointing to worsening labour market conditions in Canada, where the jobs recovery from the recession has been better than most the G7 big industrial nations.

http://ca.finance.yahoo.com/news/canadi ... 11875.html