Region’s jobless rate in neutral
Tech sector recovering
The National Capital Region jobless rate moved up a tick to 6.5 per cent in August following four straight months of decline. The rise from 6.4 per cent in July reflected a net increase of 1,500 jobs offset by 1,900 additions to the labour force, which includes those looking for work.
After dipping below five per cent in 2008, the region’s unemployment rate has remained persistently high, thanks first to the 2008-09 recession then to the Conservative government’s downsizing program, which picked up speed in 2012. During the past three years, the monthly jobless rate has tracked between six per cent and 7.2 per cent.
None of this has been helped by a surprising weakness in the high-tech sector, where job creation has historically offset periods of government downsizing.
The good news in the August numbers, released Friday by Statistics Canada, is that both the government
(August data show) the number employed by the federal government in the capital region increased by 1,500 compared to July to 127,000.
and high-tech sectors appear to be recovering. The number employed by the federal government in the capital region increased by 1,500 compared to July to 127,000.
However, that’s still 11,500 below the total of a year earlier.
High-tech employment increased by 2,300 in August to reach 38,000. Nevertheless, the sector has a long way to go.
Even as recently as March 2014, the sector employed 64,400. The uptick in August was the first break in an eleven-month string of declines.
Elsewhere in the local economy, the construction sector added 2,100 jobs in August, paced in part by major infrastructure projects such as the light rail transit initiative. On the other hand, health care and retailing sectors showed weakness, with net job losses of 3,000 and 3,200 respectively.
Meanwhile, nationally, Canada gained 12,000 jobs in August, bolstered by a gain in full-time employment, but more people were looking for work and the unemployment rate ticked higher for the first time in months, Statistics Canada reported.