60,900 People are Employed in September Causing Canada’s Unemployment Rate to Drop to 7.1%

Canada is proving that they are able to avoid a new recession by adding more jobs in September than they have in the past months. Many were fearful that Canada would fall into a severe economic downturn that would be devastating but through job creation, they were able to avoid the severity of the downturn. Since 2008, the unemployment rate has not been lower than it currently is and a majority of the new hires was in the education system. The economy is strengthening and becoming more stable with every new job that is created.

Today in Ottawa covered the astounding statistic that 60,900 new jobs were established helping to strengthen the economy. The unemployment rate was down to 7.1 percent that is the lowest it has been since the end of 2008. In the past two months alone Canada has had an amazing recovery in their economy and has seen their economy grow and become more stable. 1,600 new workers were hired in various aspects of the labor market establishing a 20,833 average for their monthly gain.

Predictions for Upcoming Progressions

Jim Flaherty, the Finance Minister, stated that the data collected regarding the employment rate directly reflects Canada’s prospective growth. Before the Bank of Canada can make their decision regarding the new interest rate on October 25 the new jobs report had to be established. Since September 2010, the bank has kept the key rate at 1 percent. The government understands that a large interest-rate increase could be detrimental to the economies rebound and will not do anything to jeopardize it.

In an effort to help strengthen the economy even more there are some people who are predicting that the central bank will actually choose to cut the interest-rate rather than increase it. They are predicting this way to do the activity in the three-month overnight index swap rate that rose to 0.936 percent on October 6. The central bank’s ideal percentage for the overnight loans is 1 percent.

Losses in Finance

Not all industries are thriving during the economic upturn. There are some that are still struggling and that have actually had job losses increase in recent months. 35,300 jobs were lost within the last month in multiple industries including real estate, finance, and insurance industries. Other industries, such as construction and natural resources, saw an increase in employment by 11,600 and 17,100 jobs respectively.

Since October 2008, Canada has had a reported jobless rate that has been lower than the U.S. unemployment rate. The Bloomberg News survey predicted that the payrolls would only climb by 60,000 in September but the Labor Department within Washington reported that they rose by 103,000 jobs instead. In September, the employment rate for full-time workers rose by 63,800 and part-time employment fell by 2,900. This rise in employment rate shows a positive outlook for Canada’s job future.