The article I have chosen talks about the changes in the number of jobs in the workforce and references as well as relates to the recent drop, in unemployment rate throughout Canada around September. It is stated that Canada’s unemployment rate was at a four decade low at 5.5%. However losses in jobs within manufacturing and construction sectors may have caused a slight re-evaluation of this insight.
As mentioned in the article, “The number of full-time jobs fell by 16,100, offset in part by a gain of 14,300 part-time jobs,”. While it was previously predicted by economists that there would be instead a gain in jobs, it seems as though there was an unexpected 16,100 drop in the number of full time jobs, instead giving rise to 14,300 part time jobs. Although in numbers it may seem a lot, but in the long run it is only a minor set back, as wage growth has continued to be consistent, hopefully closing the wage gap between full time and part time employees. As Scotiabank deputy chief economist Brett House puts it, “we continued to see strong wage gains, at over twice headline inflation, which reflects the fact that Canadian businesses continue to cite labour shortages as the most important constraint on their growth.” Meaning that once number of jobs begin rising again, the economy will continue to grow and would not impact the unemployment in the long run. As mentioned above, with wage growth increasing at a steady rate and inflation staying on target, the wage gap can only continue to shrink, which will keep the economy and labour market at a healthy status, keeping unemployment rate low.
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