Meltdown Coming: Canada is Bleeding Private Sector Jobs, and its Housing Market is Tanking

Business Insider citing Mike "Mish" Shedlock, Global Economic Trend Analysis

The Financial Post has an interesting story on the state of the Canadian jobs market. It seem over 100% of job growth is from government jobs.

Please consider Employment numbers hide the fact Canada is bleeding private sector jobs

Canada may have added 1,800 jobs in October, but that number hides the fact that almost all the gains came from government and that the private sector lost more than 20,000 jobs.

The 1,800 jobs added was already a disappointment compared with the 10,000 economists had forecast. According to Statistics Canada, that left the unemployment rate unchanged at 7.4%.

The six-month average for jobs gains is now 29,400, according to Reuters. But it’s a very different story when you look at the private sector and public sector separately.

“Details of the report were much worse than the headline number with the private sector showing a loss of 21,000 in October, the fourth decline in six months,” said Matthieu Arseneau, senior economist with the National Bank of Canada. “Over the period, the private sector is actually showing a loss of 12,000 jobs, compared to a surge of 76,000 jobs in the public sector.”

“With earnings of TSX companies down 30% so far in the third quarter, we do not expect a hiring spree anytime soon,” he said.
It is good to see a realistic comments from analysts. Matthieu Arseneau, is spot on with his comments.

Vancouver Home Sales Plunge 16.7 Percent

The Globe and Mail reports Vancouver home prices sink 3.4% from peak as sales plunge

Home sales in the Vancouver area plunged 16.7 per cent in October from a year earlier, though picked up markedly from September.

In an indication of how that market’s performing, sales were 28.5 per cent below a 10-year October sales average of 2,700, the Real Estate Board of Greater Vancouver said today, while the composite benchmark price for residential properties is down 3.4 per cent from its peak of $625,100 in May.

Along with Toronto, Vancouver has been a worry spot for observers. The country’s housing market has cooled notably since the latest round of government efforts to tighten the mortgage market, though most economists don’t envision a meltdown.

Economists never envision a meltdown. But a massive meltdown is coming anyway. I must admit the pool of greater fools in Vancouver and Toronto was far, far bigger than I thought possible, but at long last the pool seems to have dried up. A crash awaits.

So will it be the US?

Will it be China?

Will it be the Eurozone?

Or will it be Canada that triggers the next global financial meltdown?

Fellow Canadians, please regale members of the global meltdown forum with any insights on this rather fascinating though ominous analysis of the economic situation in Canada.

Is there any merit to the impending doom this story portrays? Classic sensationalist fear mongering or cause for genuine concern?

I see "Help Wanted" signs all over the place. From Factories, Lumber Yards to McDonald's.

I have been looking for new employees for awhile now and other business owners say the same.

The local papers are full of ads looking for trades people and the oil fields up North are screaming for workers.

As far as I can see, anyone who wants to work in Canada can have a job.

Peace

reply to post by jude11


It is true that there are lots of help wanted signs and ads up for jobs. I applied at an office my friend was working at answering phones and she told me they received 400 resumes for that 1 position (I didn't get the job). I've been job hunting since June and had a couple of interviews where they said they would call me to bring me in for training in a week or two and I never hear from them.

And its not just jobs or buying houses, the rents are getting to the point of being unlivable.

Wouldn't surprise me if the housing market tanked though, a 900 square foot house in Regina, SK going for a quarter of a mil? Not even in a good neighbourhood.

As for jobs, they are here for the taking. I don't know anyone who is looking for a job and hasn't found one right away. Just wish the wages would go up to meet housing prices. I'm fine, but a new family starting out trying to buy a small house at these ridiculous prices while paying down their student loans? Well, it's no wonder I know many people that have moved to the States to get jobs...especially in the health care industry. There are a lot of jobs in healthcare here, but a lot of BS too.

as long as canada has a prime minister willing to follow the u.s. over the cliff for an invitation to a bilderberg conference and dinner, canada is screwed.

what makes it worse it that that douchebag they have for a prime minister, thinks throwing canadians under a bus gets him some special recognition, but in reality he'll be the one holding his head and saying "what have i done."

reply to post by surrealist


Article is full of it.

Alberta created 5,000 jobs in the month of October. 3,800 part time, 1,200 full time...approx. 3% government positions.

I think collapse is inevitable, but this article has been sensationalized. In my city there is a shortage of workers.

I am a Labour Relations Manager in the automotive sector in Windsor, Ontario. At one of our plants, we can't find enough skilled help. We are actually hiring people off the street with zero tool & die experience and training them from the ground up to become tool makers.

Even then we can't find enough people and retaining them is even worse because the shortage-fed cannibalistic nature of the industry at this time.

While there is an ongoing 'correction' in the housing market in varying degrees due to regional desparities, for the most part, the Canadian economy is on solid ground and will definitely not be the next big thing on the Global Economic Disaster Menu.