The country has now lost jobs three months in a row.
Canada’s economy – an increasingly unproductive system propped up by massive amounts of printed money and out of control government spending – is now reaching the limit of reality evasion.
‘Growth’ can only be faked and manipulated for so long, before the fundamental problem – a lack of productivity – is impossible to ignore.
And now, for the third straight month, Canada has lost jobs.
The latest Statistics Canada jobs report shows the country losing 39,700 jobs last month.
The unemployment rate surged, from 4.9% to 5.4%.
Even that is misleading however, as many people have dropped out of looking for jobs entirely, and are thus not included in the ranks of the unemployed.
The large job loss came as a surprise to some, as economists in a Bloomberg survey had predicted 15,000 jobs would be gained.
In the past three months, Canada has now lost a total of 114,000 jobs.
As respected economist David Rosenberg noted on Twitter, these kinds of job losses usually presage recessions:
“Canada lost 40k jobs in Aug (-77k in full-time), and employment has now declined 113.5k in the past 3 months (83% in FT jobs). In the past, this coincided or led to recession ~90% of the time. The BoC doth protest too much! There is no soft landing (on either side of the border)”
Canada lost 40k jobs in Aug (-77k in full-time), and employment has now declined 113.5k in the past 3 months (83% in FT jobs). In the past, this coincided or led to recession ~90% of the time. The BoC doth protest too much! There is no soft landing (on either side of the border)
— David Rosenberg (@EconguyRosie) September 9, 2022
Most of the job losses were in the public sector, where a net 27,600 jobs were lost.
As I noted in my political analysis newsletter, nearly 90% of all new jobs created in Canada since the economic collapse in 2020 have been government jobs.
This is of course totally unsustainable, as it is highly inefficient and relies upon debt. Basically, governments are borrowing more and more money in order to create government jobs that will lead to even more debt down the road. And the high taxes Canadians pay to prop all of this up also hurt the economy, by redirecting money away from efficient private sector use.
This cannot go on forever.
Reality is increasingly intruding upon Canada’s horrendously managed economy, and no amount of statist delusion can change that.
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