Canada’s construction industry lost jobs in June despite strong economic gains in the West.
TORONTO
Canada’s construction industry lost jobs in June despite strong economic gains in the West.
Construction jobs fell by more than 19,000 following strong growth in the preceding two years, leaving employment in the industry unchanged from the start of 2006, says Statistics Canada’s Labour Force Survey.
In contrast, the survey shows that employment increased by an estimated 41,000 in health care and social assistance in June, mostly in Ontario and Quebec, bringing gains in this industry to 94,000 since the beginning of 2006.
“The loss of 19,000 construction jobs indicates that higher interest rates are beginning to slow the domestic economy at a time when many parts of our export sector are continuing to struggle because of the high Canadian dollar,” commented Andrew Jackson, chief economist, Canadian Labour Congress.
“The unemployment rate in every province west of Ontario is under five per cent while it is at least eight per cent in every province east of Ontario.”
During the last six months, Saskatchewan experienced the second highest rate of employment growth of all provinces 1.9 per cent, with gains in construction, trade, agriculture, accommodation and foodservices, the survey shows.
Canadian Labour Congress president Ken Georgetti summed up the labour numbers saying, “[t]hese numbers also tell a continuing tale of two economies, with unemployment far higher in the East and central Canada than in the West.
“We can only have one interest rate for the whole country, so it is up to the federal government to ensure that the training and adjustment programs are in place to ensure that workers and communities hit by the very high dollar are helped.”
Statistics Canada’s finding was partly mirrored in the U.S., where there have been relative gains in construction job rates in some states and a sharp decline in others.
The U.S. Labour Department, reports applications for jobless benefits in North Carolina (with the largest increase of 6,495) were attributed to layoffs in construction, lumber, textiles, primary metals, and transportation.
However, the picture was a bit rosier for Wisconsin, where the jobless rates fell by more than 2,000 because of fewer layoffs in the construction and transportation industries.
DCN NEWS SERVICES
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