04) BIGGEST JOB LOSSES IN 17 YEARS

(The following article is from the September 1-15, 2008, issue of People's Voice, Canada's leading communist newspaper. Articles can be reprinted free if the source is credited. Subscription rates in Canada: $25/year, or $12 low income rate; for U.S. readers - $25 US per year; other overseas readers - $25 US or $35 CDN per year. Send to: People's Voice, c/o PV Business Manager, 133 Herkimer St., Unit 502, Hamilton, ON, L8P 2H3.)

PV Commentary

Defying the optimistic predictions of some economists, the Canadian economy lost 55,200 jobs in July, according to Statistic Canada. This marked the single biggest monthly job loss since February 1991, when the country was in the grip of a recession.

     Most of the July losses came in Quebec (29,700 jobs) and Ontario (18,900). Continuing another trend, another 32,300 manufacturing jobs were cut in July, for a total of 87,800 over the last year.

     While the official unemployment rate dropped from 6.2% in June to 6.1% in July, StatsCan points out that this is only because large numbers of people, especially youth, gave up looking for jobs during that month. Total employment for workers in the 15-24 age bracket fell by 12,900 in July, and another 54,000 youth left the labour force during the month, reflecting low hirings for summer jobs.

     The Globe and Mail Report on Business quoted BMO Nesbitt Burns economist Jennifer Lee, saying "Canada's economy is clearly downshifting, in response to the downturn in the U.S. and to the run-up in the [Canadian dollar].... The slackening labour market is taking steam out of wage," she added referring to the slower growth in hourly earnings.

     Canadian Labour Congress president Ken Georgetti called the latest job numbers "a catastrophe for working families already worried about the rising cost fuel, food and other essentials."

     "The Bank of Canada must focus on jobs and families before apparent signs of future inflation. And our government needs a forceful jobs strategy, a Made-in-Canada plan to sustain and create jobs here. Moreover, it is becoming more and more unwise for the government to carry on with its plan to swallow the Employment Insurance fund surpluses," said Georgetti.