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Youth leaving work force Canada's jobless rate has dropped to its lowest level since the depths of recession in early 2009, but don't be fooled by the dip. And note that the nation's youth are giving up looking for work.
The economy created about 15,000 jobs in November, helping to push down the rate of unemployment from 7.9 per cent a month earlier, The Globe and Mail's Tavia Grant reports.
The jobless rate at is now at its lowest since January of 2009, Statistics Canada said today.
But beneath that lower rate were some disappointing signs. The number of full-time jobs fell, though gains in part-time work compensated for that. In fact, over the course of the past year, part-time work has far outpaced full-time jobs growth.
And though employment in Canada is at an all-time high, young people are leaving the labour force. While unemployment in that age group fell 1.4 percentage points to 13.6 per cent, the rate of participation in the labour force sank to its lowest level since the summer of 1999 as more than 40,000 quit the market.
The dip in the jobless rate, noted BMO Nesbitt Burns deputy chief economist Douglas Porter, was almost all due to the overall drop in the labour force that brought the participation rate to 66.9 per cent, and that heavily influenced by young people.
"It likely reflects the fact that they are struggling to find work, and deciding to stay in school longer," Mr. Porter said.
Scotia Capital economist Derek Holt said, though, it can be tricky to interpret just what is happening. Young people may have seen the slowing trend in jobs growth, and given up looking, but one month's numbers could also be exaggerated by seasonal factors.
Overall, said Pascal Gauthier of Toronto-Dominion Bank, the Statistics Canada report was disappointing.
"A trend improvement in private-sector employment is still needed at this important juncture," Mr. Gauthier said.
"In light of the fiscal austerity that all levels of government will have to apply in the coming years, public-sector employment simply cannot be expected to be the engine of job creation it has been."
He noted that the public sector has been responsible for creating more than six of every 10 jobs since the beginning of last year, boosting its share of employment to the highest since the mid-1990s.
U.S. jobs also disappoint The U.S. jobs crsis shows no signs of easing. Just 39,000 jobs were created in November, far, far fewer than economists had expected, and the unemployment rate climbed to 9.8 per cent.
According to Wall Street Journal calculations, that means 15 million Americans who want to work cannot find a job.
The corporate sector accounted for 50,000 jobs, while the public sector cut.
"November's U.S. employment report is a painful reality check for those hoping that a meaningful acceleration in economic activity was underway," said Paul Dales, U.S. economist at Capital Economics in Toronto.
"The truth is that the economy is going nowhere at a time when companies are not willing to boost hiring."
Managing director Sophia Koropeckyj of Moody's Analytics, noting that the jobs picture is still shy despite other positive signs in the U.S., said she expects job growth over the next few quarters to be well below what's needed to bring down the unemployment rate.
"In the meantime, as more previously discouraged workers enter the labour market, the unemployment rate is again expected to breach 10 per cent. Employment growth is not expected to hit its stride until the end of 2011 or early 2012."
RBC misses estimates Royal Bank of Canada missed analysts' estimates in reporting a dip in fourth-quarter profit and revenue today, Globe and Mail banking reporter Grant Robertson writes.
Canada's biggest bank earned $1.12-billion in the quarter, down 9 per cent from a year earlier, as a loss associated with the sale of its Liberty Life division pushed down profits. RBC's fourth-quarter profit is equal to 74 cents a share, compared to a profit of $1.24-billion, or 82 cents a share, a year ago.
On a cash basis, RBC's earnings were 84 cents a share. Analysts were, on average, expecting earnings of about $1 per share, according to a poll by Thomson Reuters.
National Bank Financial analyst Peter Routledge described the results as "an across the board miss."
- RBC quarterly profit falls 9 per cent
- TD profit slips to $994-million
- Trading operations pull down CIBC
- National Bank boosts dividend, restructures investment arm
Scotiabank profit climbs Bank of Nova Scotia met estimates with a 21-per-cent jump in fourth-quarter profit to $1.1-billion or $1 a share. That was up from 83 cents a year earlier, The Globe and Mail's Tara Perkins reports.
its quarterly dividend unchanged at 49 cents.
Like its peers, Scotiabank's bottom line this quarter was lifted by its consumer and business banking operations, while its capital markets businesses were a drag on profits compared to a year ago.
China to tighten policy China plans to tighten its monetary policy next year, according to the country's top leaders. Troubled by inflation, authorities are expected to boost interest rates again.
China's official news agency, Xinhua, said today that the Politburo declared it should shift monetary policy from the "relatively loose" nature now.
Authorities have already moved to cool down a hot economy, which has troubled investors who fear China will slow its demand for commodities.
From today's Report on Business
- Canadian Natural to set own pace on Horizon expansion
- Fairfax's Prem Watsa sees commodity bubble brewing
- GM targets green Canadians for Volt rollout
- Adhocracy: A master of persuasion gives up the secrets
And, read our Streetwise blog and Your Business section.