A continued look deeper into economic data shows severe weakness in the Canadian economy.
As reported by Stats Canada, 22,500 fewer people between the age of 15-24 were in the workforce in April than in March.
This drop explains the decline in the unemployment rate – which is calculated in such a foolish way that people giving up on finding work are no longer considered unemployed.
With young Canadians already facing a weak economy, it is a disturbing sign to see so many give up on finding work.
Job quality getting worse
The measure of job quality, full-time vs part-time jobs, also got worse.
From March to April, the number of full time jobs fell by 31,000. 34,000 part-time jobs were created, but that number doesn’t come close to making up for the combined loss of part-time jobs and people who gave up on finding work.
Weak wage growth
To make matters worse, wages are growing at the lowest level since Stats Can first started collecting wage data in 1997. Even in months where job growth appeared decent, wage growth has continued to be low. What we are seeing is an economy where secure jobs are becoming less and less available. While many people are finding new ways to work, (more contracts, entrepreneurship, piece-work), in many cases the wages in those jobs are not keeping up with the rising cost of living.
As a result, apart from a small elite that is getting richer, most Canadians are getting poorer in real terms.
And so long as our government keeps doubling-down on high-taxes, high spending, high debt, and high regulations, our economic prospects will remain low, and young Canadians will continue to struggle to find good jobs and start building wealth.