Friday, January 11, 2008

LFS Data

It's been awhile since we've had any meaningful Canadian economic data put out, so let me talk about the just-released Labour Force Survey.

Yes, we saw job losses in December (yet no change to the unemployment rate). I'm sure you can read about that somewhere. The one nail I want to whack again is:
All of the employment losses in December were among employees in the private sector, leaving gains for this group of workers up a tepid 0.4% over the course of the year. Gains for the year were mostly in the public sector and self-employment.

And predominately in the public sector, I might add. (110k public sector v. 22k self-employed.) This trend, which I've noted before, worries me. It's not a sign of a recession, and doesn't mean anything at all in the short run. However, it's clearly unsustainable over the longer run. One of the few worries I have about the Canadian economy as a whole.

1 comment:

Travis Fast said...

It is a worrying trend, to my mind, mostly because there is so little labour slack that the government employment could be squeezing private sector labour supply. OTOH this might set the stage for workers to recover some of that income that has been flowing to the top 1 %. Whither Greenspan's traumatized worker?