Surprising Job Growth
35,000 new jobs were added in Canada in April. This news comes as quite a shock, since forecasters were expecting the job market to slump further during the month of April. In addition, the Loonie has picked up speed topping all expectations. The question is: is all of this positive economic news a farce?
Rise in Self-Employment
According to Statistics Canada, the recent surge in employment rates are a direct result of an increase in self-employment. While seemingly positive news, the fact remains that the actual number of Canadians searching for work remains at a steady pace of 8.0 percent (Reuters).
Mixed Opinions
While BMO deputy chief economist Doug Porter believes that “it’s basically good news across the board…” he also went on to caution that “… it could be a head fake just given the fact (of) how rapidly employment was declining in the first three months of this year” (Reuters). He was also quick to state that the recent growth could be a “…temporary correction” (Reuters).
What Does It Mean for Canadians?
What does all of this mean for the average Canadian? It means that while the numbers appear to be improving, the global recession has not come to an end quite yet. As with the rise and fall of the stock market, jobless rate numbers also tend to fluctuate – especially during a recession.
Numerous economists are sceptical that a true end to the recession will be occurring anytime soon. In fact, Statistics Canada reports that nearly 272,900 jobs were lost during the first three months of this year (Reuters). In the grand scheme of things, the recent jump in employment rates is not enough to point towards any kind of economic resurgence.
Job Uncertainty Persists
Even with all this recent optimism in the air, many Canadians are still facing job uncertainty. As a result, numerous Canadians are seeking temporary loans. Unfortunately, banks are not falling prey to the job rate chimera quiet yet. Instead, most banks are still holding onto their money with even more caution than before.
Private Lenders Offer Hope
Still, those Canadians in search of a loan might find some solace with private lenders. Throughout this global recession some private lenders have not been swayed by an economic state that is constantly in flux. Instead, these lenders are still giving out loans to those in need.
Illusion or Reality?
Is the job market truly picking up? Are the recent news headlines to be trusted? Seemingly, these recent numbers are nothing short of an illusion aimed at focusing upon those that have taken the self-employment route. Meanwhile, the majority of Canadians are still searching for jobs or trying to think of ways to keep the ones that they have.