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The recession in Canada could well be over, but the Bank of Canada says unemployment will continue to get worse and dampen economic recovery. At the same time, economists predict almost 10% of the workforce will be jobless before conditions begin to improve next year.
However, some sectors of the employment market are expected to recover faster than others, providing opportunities for those with the required skills.
As signs of improvement begin to emerge, the central bank has turned more upbeat on the prospects for Canada, predicting economic growth of 1.3% in the current quarter, compared with its previous prediction of a 1% contraction. If the Bank of Canada`s prediction proves correct, the recession would be limited to three consecutive quarters.
"The perkier outlook is largely due to a rosier view on consumer spending and housing," said Douglas Porter, deputy chief economist at BMO Capital Markets.
But even as the economy returns to growth and consumer spending picks up, the effects of recession will linger, particularly where jobs are concerned.
"We are not going to be back at the level of activity that we were when the recession started... until the middle of 2010," Mark Carney, the governor of the Bank of Canada, said yesterday. "And unfortunately, the labour market is slowest to adjust and we can expect further rises in unemployment even though the economy has started to grow."
Read the full article here.
However, some sectors of the employment market are expected to recover faster than others, providing opportunities for those with the required skills.
As signs of improvement begin to emerge, the central bank has turned more upbeat on the prospects for Canada, predicting economic growth of 1.3% in the current quarter, compared with its previous prediction of a 1% contraction. If the Bank of Canada`s prediction proves correct, the recession would be limited to three consecutive quarters.
"The perkier outlook is largely due to a rosier view on consumer spending and housing," said Douglas Porter, deputy chief economist at BMO Capital Markets.
But even as the economy returns to growth and consumer spending picks up, the effects of recession will linger, particularly where jobs are concerned.
"We are not going to be back at the level of activity that we were when the recession started... until the middle of 2010," Mark Carney, the governor of the Bank of Canada, said yesterday. "And unfortunately, the labour market is slowest to adjust and we can expect further rises in unemployment even though the economy has started to grow."
Read the full article here.