Friday, May 08, 2009

Canadian April Employment Data

video
Friday May 8, 2009

Monthly employment data is a lagging indicator that confirms what really happened in the two to three months preceding. Nevertheless, the markets and the media react to this information as if the Colonel had just unveiled his secret formula of 11 different spices.

Today's information was an exception to the rule. Job creation? Who would have imagined that 36,000 jobs were created in April 2009? Did that really happen? Nevertheless, the April overall unemployment rate remained unchanged at 8% because more people entered the job market to offset these new job gains.

Quebec lead the way with new jobs. It's not hard to imagine why Quebec is out pacing Ontario when you compare the Quebec dynamic leadership of Minister David WHISSELL (PQ, Minister of Labour) and Minister Sam Hamad (PQ, Minister of Employment and Social Solidarity) to the over interfering and regulation loving controversial Minister Peter Fonseca (ON, Minister of Labour) and over taxing Premier McGuinty. I'm certain that Ontarians will eventually succeed in spite of their government.

The temporary staffing services industry is a leading indicator of the economy. The industry began reporting a reduction in their hours as far back as April 2008, a full six months ahead of the dramatic declines in the stock markets and employment data.

This new April data may be a sign that we have found the bottom but it does not mean that we on the road to recovery just yet. Managers won’t jump to rehire permanent employees until the fog has lifted and there is visibility down the road of recovery. The first jobs to emerge will be temporary and contract. The staffing services industry will provide just-in-time skilled resources to meet staffing needs while helping businesses hedge against the uncertainties ahead.

If you know people who are unemployed, then encourage them to consider temp and contract work. Between 45% and 65% of the people who start working temporary will eventually convert to full time. Flexibility, adaptability, a positive outlook and a willingness to seize opportunity - these are just four spices in the Colonel's formula for future prosperity.

BTW - Suhana Meharchand of CBC News Today is absolutely charming. Watch the video and see for yourself.

Steve Jones

President

The People Bank, Design Group Staffing Inc.

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