June job report adds pressure for rate hike

[Shady]

Good news on the jobs front!

OTTAWA - Canada's jobs machine went into overdrive last month, leaving the United States and most other advanced economies in the dust.

Statistics Canada said Friday that the economy had created a whopping 93,200 new jobs in June — almost all in Ontario and Quebec and all in the services sector.

That took the country's unemployment rate below eight per cent for the first time since the depths of the recession in January 2009, falling to 7.9 per cent.

That is in contrast to the 125,000 jobs lost in the United States last month and flat readings through most of the Group of Seven countries, which originally comprised the world's largest industrialized economies before the evolution of China, India and several other countries emerged as new economic powers

AP

Unfortunately interest rates will have to rise, at least a little bit. But job stats such as these will give the opposition in Ottawa second thoughts on orchestrating any election talks in the coming months.

[nicky10013]

Good news on the jobs front!

Unfortunately interest rates will have to rise, at least a little bit. But job stats such as these will give the opposition in Ottawa second thoughts on orchestrating any election talks in the coming months.

If he's doing such a good job he'd be in majority territory. The Liberals are only two points back. In October, when the US economy double dips and we get dragged back under, I wonder what you'll say then.

[Shady]

If he's doing such a good job he'd be in majority territory. The Liberals are only two points back. In October, when the US economy double dips and we get dragged back under, I wonder what you'll say then.

We won't be dragged back under. Despite your hopes.

[nicky10013]

We won't be dragged back under. Despite your hopes.

Gee, this rhetoric sounds familiar. I remember a certain Prime Minister saying before a certain 2008 election that we wouldn't have a recession. Look how that turned out.

[William Ashley]

Gee, this rhetoric sounds familiar. I remember a certain Prime Minister saying before a certain 2008 election that we wouldn't have a recession. Look how that turned out.

Can anyone explain the benefits of interest rate increase - unless all these jobs were made on loans... rather than available private capital not controlled by the financial sector?

Edited July 20, 2010 by William Ashley

[Shady]

Can anyone explain the benefits of interest rate increase - unless all these jobs were made on loans... rather than available private capital not controlled by the financial sector?

You risk high inflation if interest rates remain too low as an economy grows.

[Topaz]

Sure there's jobs being created by the stimlus package BUT when the project comes to a halt so will those jobs and then EI will rise again. Service business are only hiring part timers and teens to avoid paying out benefits and so if the economy slows down will these partimers get EI? There are probably more people without jobs then with and they probably been on EI and now the benefits have run out....now its welfare. So its not all rosie right now for the unemployed and I like to know how many people have come off EI and can't find a job because there's no jobs in their areas.

[Smallc]

Sure there's jobs being created by the stimlus package BUT when the project comes to a halt so will those jobs and then EI will rise again. Service business are only hiring part timers and teens to avoid paying out benefits and so if the economy slows down will these partimers get EI? There are probably more people without jobs then with and they probably been on EI and now the benefits have run out....now its welfare. So its not all rosie right now for the unemployed and I like to know how many people have come off EI and can't find a job because there's no jobs in their areas.

None of that is true. The idea of a stimulus is to soften the impact of he dip. We're not in a dip anymore, and so by this time next year, all stimulus project will be done. The private3 sector is the one that has actually created many of the jobs, and that should continue going frward (though at a reduced rate, as the US appears to be in trouble again).

[sharkman]

Gee, this rhetoric sounds familiar. I remember a certain Prime Minister saying before a certain 2008 election that we wouldn't have a recession. Look how that turned out.

And you are saying Canada will be dragged down by the US this fall. How are your predictions any different and why should we believe you?

[maple_leafs182]

The US economy will crash again.

The stimulus did stimulate the economy but it is only temporary and will make the problem worse in the long run. The jobs that the stimulus and low interest rates created will disappear once the stimulus stops and interest rates go higher.

The problem with the US is they went into too much debt and over consumed, how do you guys think going into more debt and consuming more will solve the problem. The US needs to start producing goods and buying local if they want to fix their problem.

Can anyone explain the benefits of interest rate increase - unless all these jobs were made on loans... rather than available private capital not controlled by the financial sector?

Interest rates too low for too long does create inflation. Inflation is the expansion of the money supply, low interest rates encourages borrowing and new money is created threw loans. The more loans, the more new money, the more inflation.

[Topaz]

None of that is true. The idea of a stimulus is to soften the impact of he dip. We're not in a dip anymore, and so by this time next year, all stimulus project will be done. The private3 sector is the one that has actually created many of the jobs, and that should continue going frward (though at a reduced rate, as the US appears to be in trouble again).

[/quote

I think the Fed. government with its hiring has created the increase and Harper has the largest ever. It will cost the taxpayers more when all those people retire with pensions, were if the private sector had hired them, the taxpayer wouldn't have to. The private sector won't be hiring full time jobs until it sure we are definitely doing better and that depends on the US and Europe and right now its not too good for either of them.

[Smallc]

We (Canada) are definitely doing better.

[nicky10013]

We (Canada) are definitely doing better.

For now that can't be doubted. However, that was the rationale behind the entire 2008 election. Either Haper was deliberately misleading the country on how bad the economy would become, or he and Deficit Jim had absolutely no idea what was coming. Either way, can these guys be trusted?

[nicky10013]

And you are saying Canada will be dragged down by the US this fall. How are your predictions any different and why should we believe you?

The US has resumed losing jobs. The temporary uptick in employment numbers were due to the temporary hires in terms of the census they're doing down there. This combined with the debt crisis in Greece which will undoubtedly roll into crisis over Italy, Spain and Portugal as well has created more than enough doubt that the recovery thus far is sustainable. The recovery is shakey enough as it is.

If the US double dips, anyone claiming that Canada WON'T be dragged down into a second recession is either stupid or willfully being blind. They're our biggest customer, and if demand goes down there, it'll naturally affect us here as well.

[Shady]

The US has resumed losing jobs.

That's not really true. The US economy is stagnant, creating a trickle of private sector jobs, but it's not losing jobs. Last months job losses was due to expiring census jobs. But the private sector still showed a slight plus in jobs.

[nicky10013]

That's not really true. The US economy is stagnant, creating a trickle of private sector jobs, but it's not losing jobs. Last months job losses was due to expiring census jobs. But the private sector still showed a slight plus in jobs.

A stagnant US economy certainly isn't something to pin hopes to.

[bush_cheney2004]

The problem with the US is they went into too much debt and over consumed, how do you guys think going into more debt and consuming more will solve the problem. The US needs to start producing goods and buying local if they want to fix their problem.

As reported last month, Canadian consumers now have more personal debt than Americans. The USA is still a major manufacturing nation last time I checked....second only to China.

[nicky10013]

Canada's economy slowing sharply.

http://www.thestar.com/business/article/838848--canada-s-economy-slowing-sharply-central-bank-says?bn=1