The recent labour market in Canada and the United States
By Vincent Ferrao
The collapse of the United States housing market and subsequent problems in financial markets began to affect that country's labour market at the start of 2008. Employment losses occurred throughout 2008, with especially steep declines in the final quarter of the year. Losses continued at the start of 2009.
In Canada, employment grew over the first nine months of 2008, but declined in the last quarter of the year. And the losses worsened at the start of 2009. For all of 2008, however, Canada still managed a slight increase in employment.
In 2008, all major labour market indicators (employment growth, unemployment rate, participation rate, employment rate) were more encouraging in Canada than in the United States, despite the deterioration observed toward the end of the year.
The labour market for young people (age 16 to 24) was especially affected in the United States as their employment declined by 5.0%. Core-age employment (25 to 54) fell by 2.9%. This contrasts with Canada where the employment decline among youth was much slower (-1.9%) and the number of core-age workers rose marginally (0.2%).
Industries most affected by employment losses in the United States (construction, financial activities, and wholesale and retail trade) were not affected in Canada. In 2008, these industries managed to maintain their employment levels and even add workers. The number of factory workers, however, continued its downward trend in both countries.
- Date modified: