Best of the Week
Most Popular
1.London House Prices Bubble, Debt Slavery, Crimea 2.0 - Russia Ukraine Annexation - Nadeem_Walayat
2. Gold And Silver – 2014 Coud Be A Yawner; Be Prepared For A Surprise - Michael_Noonan
3.Sheffield, Rotherham Roma Benefits Plague, Ch5 Documentary Gypsies on Benefits & Proud - Nadeem_Walayat
4.Glaring Q.E. Failure Spotted - Money Velocity Is Falling Rapidly - Jim_Willie_CB
5.Don't Miss the Boat on Big Biotech Catalysts: Keith Markey - Keith Markey
6.Gold Prices 2014: Do What Goldman Does, Not What It Says - David Zeiler
7.Bitcoin Price Strong Appreciation to Be Followed by Declines? - Mike_McAra
8.Gold Preparing to Launch as U.S. Dollar Drops to Key Support - Jason_Hamlin
9.Doctor Doom on the Fiat Money Empire Coming Financial Crisis - Andrew_McKillop
10.The Real Purpose Of QE - It’s Not Employment - Darryl_R_Schoon
Last 72 Hrs
The Obama Game - Is Putin Being Lured Into a Trap? - 18th Apr 14
The Growing Threat to Capitalism - 18th Apr 14
Build Biotech Wealth on Solid Platforms - 18th Apr 14
Has Solar Power Finally Arrived? - 18th Apr 14
Bank Depositor Bail-Ins and Real Assets vs Liability-Based Assets - 18th Apr 14
10 Ways to Screw up Your Retirement - 17th Apr 14
One of Harry Dent’s Three Keys to Market Prediction is Cycles - 17th Apr 14
Obamacare Proof Stocks - 17th Apr 14
Gold, Silver And The Mining Sector: Prepare For A Severe Fall - 17th Apr 14
Hidden Australian Life Sciences Bio-tech Growth Stocks - 17th Apr 14
Disrupting Big Data Status Quo - 17th Apr 14
What the Stock Market Bears Have Been Waiting for... - 17th Apr 14
Copper Is Pathological and Suffers from SAD, but It Has Value - 17th Apr 14
Old World Order New World Order, Chaos And Change - 17th Apr 14
Even The US Government Will Abandon the U.S. Dollar - 17th Apr 14
Gold - Coming Super Bubble - 17th Apr 14
Glaring Q.E. Failure Spotted - Money Velocity Is Falling Rapidly - 16th Apr 14
High-Frequency Insider Trading - 16th Apr 14
Gold Prices 2014: Do What Goldman Does, Not What It Says - 16th Apr 14
These CEOs Will Make Investors Rich - 16th Apr 14
Climate Change, Central Banking And The Faustian Bargain - 16th Apr 14
Every Central Bank for Itself - 16th Apr 14
Social Security, U.S. Treasury Stealing Every Last Penny From Americans - 16th Apr 14
Ukraine Falling to Economic Warfare and Its Own Missteps - 16th Apr 14
Silver and Gold Miners Still Disappoint - 16th Apr 14
Silver, Gold, and What Could Go Wrong - 15th Apr 14
How I Intend to Survive the Meltdown of America - 15th Apr 14
France Wakes Up To The Multicultural Multi-Threat - 15th Apr 14
The Real Purpose Of QE - It’s Not Employment - 15th Apr 14
Peak Coal - 15th Apr 14
Flash Crash, Rigged Markets - What’s the Frequency Zenith? - 15th Apr 14
Forecasting U.S. GDP Growth: A Look at WSJ Economists’ Collective Crystal Ball - 15th Apr 14
Stock Market - Is Something Nasty About to Happen? - 15th Apr 14
How to Trade Your Way To Freedom - 15th Apr 14
Understanding (and Ignoring) the Media Bandwagon Against Gold - 15th Apr 14
When Stock Market Bubble Crashes, Take Refuge in Gold Stocks - 15th Apr 14

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

Soft Canadian Job Market Masked By Public Sector Hiring Binge

Economics / Canada Aug 28, 2008 - 01:17 AM GMT

By: Mike_Shedlock

Economics One expects to hear ridiculous statements continually in the US, particularly from Bernanke, Paulson, President Bush, and various commentators on CNBC.

However, the US does not have a monopoly silly economic commentary by any means. Tom Jeffries at radio station CKNW Vancouver (see the audio links on the right hand side of this blog - a new one is posted every week or so as time permits) sent me a link to an article on the Canadian job market containing comments best described as "That's Loonie".


Inquiring minds may wish to consider Public hiring binge will end, expose soft job market, observers say .

Weakness in the labour market that has been masked by strong public-sector job growth could soon be laid bare as softening government finances put the hiring frenzy on hold.

Despite sharp declines in Canada's manufacturing sector in recent times, the country's labour market has been buffeted from overall losses - with 55,000 jobs eliminated from the economy in July - by gains in the public sector.

"We look at the overall quality of employment and were surprised to see that it has improved despite the weakening economy," said CIBC World markets senior economist Benjamin Tal. "One of the reasons for that was the fact that a lot of the new jobs were in the public sector, which has relatively high-quality jobs.

How can anyone can possibly think that the "overall quality of employment" can rise on account of public sector jobs?

In honor of Daffy Duck, I say "That's Loonie".

To be fair, Tal went on to say "This probably will not last. The days that governments run high surpluses are over. In fact, I would expect government hiring to slow down significantly over the next two to three years."

Statements of economic reality are enough to knock one out of contention for the gold medal in economic "Loonacie". With those subsequent statements, Tal has disqualified himself from the gold medal round.

The article continues with Niels Veldhuis, the Fraser Institute senior economist, chiming in with realistic concerns about public sector growth.

According to the Statistics Canada report, the proportion of public sector workers among the total employed in the workforce has remained stable at 19 per cent since 2001.

"This number is quite concerning," Veldhuis said. "The public sector as a percentage of employment is critical in terms of how that impacts our economy and our labour market, and we need to be focusing on reducing that further than 19 per cent rather than being pleased with 19."

As jurisdictions with higher rates of public sector employment tend to attract less investment and suffer slower rates of economic growth, it is imperative to make ourselves comparable to competitors, Veldhuis said.

But we are a long way off from that, as Canadian provinces have much bigger public sectors than most U.S. states.

"When you look at place like Nevada, Wisconsin and Massachusetts, they're all sitting at 10 or 11 per cent of employment. Alberta has Canada's smallest public sector at about 15.5 per cent. But when you start looking at places like Newfoundland and Saskatchewan, Saskatchewan has the highest (proportional) public sector in North America, at 27.4 per cent."

Veldhuis said government hiring should not be seen as a bromide for troubled times, as the increased government spending could force the economy into deficit and the government to raise taxes.

Loonie Comments Of The Month

Tal's initial comments got me thinking about a possible feature about the most ridiculous Canadian comments of the month. Possible titles include "That's Loonie" and "Loonie Comments Of The Month"

Thinking further, why not have a competition from the UK as well? Something like "Sterling Comments Of The Month" could work.

For the US, something like Nocents Comments Of The Month" is a possibility. I am open to other title suggestions as well as ideas on how to present them.

I am considering a competition of submitted entries in which I would post a link to the winning blog or simply the winning commentary person if there was no blog. What I would be looking for is the 5 most ridiculous country specific comments of the month (US, UK, Canada), with a short rebuttal. The only problem is I cannot spend a lot of time on this, as I am swamped as it is.

If anyone has some ideas on how to organize such a monthly competition, please email me. To help me quickly sort through the ideas, please put "That's Loonie" in the Email header.

By Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

Click Here To Scroll Thru My Recent Post List

Mike Shedlock / Mish is a registered investment advisor representative for SitkaPacific Capital Management . Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction.

Visit Sitka Pacific's Account Management Page to learn more about wealth management and capital preservation strategies of Sitka Pacific.

I do weekly podcasts every Thursday on HoweStreet and a brief 7 minute segment on Saturday on CKNW AM 980 in Vancouver.

When not writing about stocks or the economy I spends a great deal of time on photography and in the garden. I have over 80 magazine and book cover credits. Some of my Wisconsin and gardening images can be seen at MichaelShedlock.com .

© 2008 Mike Shedlock, All Rights Reserved

Mike Shedlock Archive

© 2005-2014 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Free Report - Financial Markets 2014