November 18, 2009

Canada’s construction job decline came early in recession

OTTAWA

A new report says employment declined much faster in the early months of the current economic downturn than it did early in the recessions of 1981 and 1990.

But the analysis by Statistics Canada found employment levels in the next seven months of the current downturn were relatively stable, while employment had continued to decline in previous downturns.

Employment had reached an all-time high by October 2008, but five months later it had fallen 2.1 per cent.

After five months in 1981 and 1990, it had declined by 0.8 per cent and 0.6 per cent, respectively.

However, in recent months, employment levels have been relatively stable, while employment losses continued for 17 months in 1981-82 and for 11 months in 1990-91.

Employment fell by 400,000, or 2.3 per cent, between October 2008 and October 2009, while the unemployment rate rose to 8.6 per cent from 6.3.

The manufacturing and construction sectors suffered the largest employment declines in all three economic downturns.

StatsCan reports 218,000 manufacturing jobs were lost, or 11 per cent, from October 2008 to October 2009, and the decline was widespread.

The agency says manufacturers suffering notable decreases included fabricated metal products; transportation equipment manufacturing; paper and printing; and furniture and related manufacturing.

Construction employment dropped by 73,000, or 5.8 per cent, all of it during the first five months.

It isn’t all bad news, though.

Real estate and leasing enjoyed modest employment gains, along with information, culture and recreation; and health care and social assistance.

The private sector, young people, low-paid workers and families with children have all been particularly hard hit during this recession, while those aged 55 and over had modest employment gains.

Canadian Press

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