‘Terrible’ news that will make it harder for many to buy homes

by Justin da Rosa08 Aug 2016
Following a disappointing StatsCan report, one leading economist weighs in on the impact it could have in Canada.

“Another woeful jobs report in Canada for the month of July triggers further pessimism,” Dr. Sherry Cooper, chief economist with Dominion Lending Centres, said in her most recent economic report. “Following three consecutive months of stagnant employment, payrolls fell by a much-worse-than-expected 31,000 in July as the unemployment rate increased 0.1 percentage points to 6.9 percent. Gloomily, all of the loss was in full-time employment, which fell by 71,000 from June to July, while part-time work was up 40,000.”

For a Canada-wide breakdown of unemployment rates, see below.

Newfoundland and Labrador 12.8 per cent (previously 12.0)
Prince Edward Island 9.6 (11.0)
Nova Scotia 8.4 (8.2)
New Brunswick 9.7 (10.3)
Quebec 7.0 (7.0)
Ontario 6.4 (6.4)
Manitoba 6.2 (6.1)
Saskatchewan 6.3 (6.1)
Alberta 8.6 (7.9)
British Columbia 5.6 (5.9)
“Employment fell in Ontario and Newfoundland and increased in British Columbia and New Brunswick. This was the first decline in Ontario since September 2015, where the unemployment rate currently stands at 6.4 percent. B.C.'s positive jobs performance extends an uptrend that began in the spring of last year,” Cooper said “The unemployment rate in B.C. is the lowest in the country, at 5.6 percent, helping to explain--at least in part--the booming housing market in Vancouver and environs.”
However, it wasn’t all bad news.
“In direct contrast, the jobless rate in Alberta increased sharply to 8.6 percent, its highest level since September 1994,” Cooper said. “Alberta's economy has been brutalized by the oil price rout, which began in June 2014 and, more recently, the Fort McMurray wildfires. Oil prices have come under renewed downward pressure in recent weeks, largely reflecting seasonal forces.”
Still, the jobless rate is something agents should keep an eye on, as it is an indication of province-wide client prospects and the appetite for housing.

With files from Canadian Press.

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