Canadian labor market has increased employment with 29.3K jobs added in February, according to the latest figures. The figures indicate that the labour market is strengthening. In fact, it has been getting better since the rate cut took effect. Indeed, there are some obvious areas where this government acted well.
It was obvious that the Bank of Canada, or the central bank, didn’t like the current situation they were in. The bank had to think long and hard before they acted. What I mean by this is that the situation in the economy was pretty dire at that point.
The Bank of Canada took the easy way out by cutting rates. Of course, they were just following a plan that the government had implemented. Now, the government wants to turn around and ensure that people are getting an extra incentive to work.
How do we know this? This is a fairly interesting development that may help to determine how the Canadian labour market will progress. There are some good signs in the figures and this is important to consider.
The Bank of Canada looked at the numbers, took a fresh look at them and noted something that is quite interesting. They found that the unemployment rate had not risen. It was in fact down from four months ago.
This is encouraging news for the people who lost their jobs when the Bank of Canada announced the rate cut. The jobless rate has decreased significantly. This means that more people have a chance to find a job.
While the Bank of Canada looked at the numbers they noticed a very good thing. They realized that the unemployment rate had not increased during the period of time during which the rate cut took effect. The following figure shows the monthly unemployment rate for March.
When the government cut rates the unemployment rate was up by five per cent in recent months it has been stable. This may be a strong indication that the stimulus program is working. Of course, it takes time for a new employment program to have an effect on the economy.
Another point is that while the Bank of Canada decided to act, they actually took advantage of the policy they created by reducing the rate. It will take time for any substantial change to take place. After all, this is a program that was put in place in order to stabilize the economy.
This may mean that we are close to seeing a possible improvement in the economic environment. The fact that the unemployment rate has been stable is a good sign that things are not getting worse. This is important for the people who are still searching for a job.
The fact that people have been able to find jobs will bring a little bit of comfort. Indeed, the percentage of people who are employed is quite high, so it looks like things are getting better. We can’t forget about the unemployed though. They are still looking for a job.
That is why it is so important that this stimulus program continues. When it ends, there will be a jobless recovery. In fact, this program may already be causing a change in the employment situation.