Statistics Canada has reported that 44,400 jobs were added to the Canadian economy in October, bringing the unemployment rate down to 7 percent. Positive news is always welcome, but this is particularly well-timed because the Canadian economy remains shaky after spending the first six months of the year in recession because of tumbling oil prices as well as other serious issues.
However, it is important to note that this should not result in too much enthusiasm, which can be as bad as too little. For starters, 9,000 out of the 44,400 jobs were full-time positions, meaning that the remaining 35,400 jobs were part-time positions. Furthermore, 32,000 out of the 44,400 jobs were in public administration, meaning it is probable that most of them are temporary, part-time positions added for the purpose of holding the federal election.
Still, an increase of more than 12,000 permanent jobs is a respectable figure, seeing as how it is in line with previous increases in August and September. Consistent increases in three consecutive months means that this can be considered a trend, which bodes well for the continuing health of the Canadian economy. Better still, wages have increased as well by 3.1 percent when measured using a year-on-year basis, meaning that people are actually gaining more purchasing power because inflation remains flat at 1 percent.