Canada?s real unemployment rate edges up to 14 percent

The jobless rate increased to 7.5 percent from November?s 7.4 percent and the recent low of 7.1 percent in September, Statistics Canada said today in Ottawa. Employment (CANLNETJ) rose by 17,500, the first gain in three months. Over the past six months, the number of jobs has grown by 7,400, compared with a gain of 191,800 in the first half of 2011.

The labor market may stay stalled in 2012 with unemployment averaging 7.4 percent, according to a Bloomberg News survey of economists taken last month. Prime Minister Stephen Harper said ?the news isn?t all good? in today?s report, speaking to reporters in Edmonton, Alberta.

?Job growth has cooled,? said Doug Porter, deputy chief economist with BMO Capital Markets in Toronto, by telephone. ?I wouldn?t at all be surprised if we are averaging 10,000 jobs a month, which won?t cut into the unemployment rate at all? over the next six months, he said. Source: (3) Bloomberg

As is with the USA, these numbers are sugar coated and do not portray the reality.

In the US, they have different measures. While the government uses what is known as the U3 rate of 8.6%, news media always ignores the more realistic U6 rate that now stands at 15.6%

The US U6 rate is defined as follows and is a much more accurate measure of counting people not working or under-employed:
? Total unemployed, PLUS all persons marginally attached to the labor force, PLUS total employed part time for economic reasons, as a percent of the civilian labor force PLUS all persons marginally attached to the labor force.? Source: http://www.bls.gov/news.release/empsit.t15.htm

In other words, those who have given up looking, are working part time and want full time work, or whose benefits have run out are NOT counted in the almost bogus rate presented by both government and the main stream media. The question becomes, what is Canada?s REAL unemployment rate comparable to the American U6 rate?

The Canadian ?U6? is around 14% while the official is now edging past 7.5 percent. Canada calculates that number but doesn?t publish it to the mainstream media. Indeed, 70% of Canadians are astute enough to know that the country?s economic problems are being papered-over by the people in charge.?? Source: (2) montreal gazette

The headline numbers on employment, for example, reflect neither the types of jobs (full-time salary/benefits v. part-time/self-employed) being ?added? to the economy. It?s important to read the entire report.

Likewise with GDP numbers, consumer spending is highly dependent on available credit (as opposed to actual disposable income). Household debt levels have shot through the roof because too many people are struggling to make ends meet by increasing their debt load.

?The situation is particularly acute in BC where real incomes have fallen -6% since the 80s, while the cost of housing has increased +149% during the same period.????

References:

(1) BLS

(2) montreal gazette

(3) Bloomberg

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