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Jobboom Index for August

Job losses send the Ontario index plunging to 78.7 %

Ontario reported a significant loss of 18,900 jobs in July, although this figure is still slightly lower than the previous month’s 23,900 lost jobs. As such, the province’s index dropped 9.9 points to 78.7 % for August, coming dangerously close to the fair mark. Despite these setbacks, the province’s employment gains have progressed by 1.2 % since the beginning of the year.

The goods-producing sector posted negative results (-32,500 positions) in July, largely due to heavy losses in the Manufacturing sector (-40,700). The Construction sector also experienced a decline, with 1,100 lost jobs. Meanwhile, the following three sectors offset the negative trends: Utilities (+ 4,700), Forestry, fishing, mining, oil and gas (+ 4,100) and Agriculture (+ 500).

   AUGUST 2008
   FORECAST
78.7%



FAVOURABLE



Overall, the services-producing sector fared better than its counterpart in the month of July, creating 13,600 new jobs. However, major variations were observed within its sub-sectors, with the following five reporting major losses: Business, building and other support services (-12,800), Professional, scientific and technical services (-9,300), Trade (-7,200), Educational services (-4,300) and Information, culture and recreation (-4,200). These losses were offset by gains in the following sub-sectors: Accommodation and food services (+ 22,300), Health care and social assistance (+ 17,500), Public administration (+ 5,300), Transportation and warehousing (+ 3,200) and Finance, insurance, real estate and leasing (+ 2,400).

Over the past 12 months, employment in Ontario has grown by 1.2 %.

This month’s Jobboom Index ranks 59th in 120, meaning there were 61 months with weaker indices over the past 10 years. From July 1998 to July 2008, employment in this province has grown by 22 %.

Ottawa-Gatineau region: 98.6 % — Excellent
This region made substantial headway in July with the creation of 3,900 jobs, for a total of 9,400 new jobs created in the last three months. As such, the Ottawa-Gatineau index is up 4 points, bringing it to 98.6 % for the month of August.

Over the past 12 months, employment has risen by 3.4 % in this Census Metropolitan Area (CMA).

This month’s index ranks 1st out of 120, meaning there were 119 months with weaker indices over the past 10 years. From July 1998 to July 2008, employment in this region has grown by 30 %.

Toronto region: 39.7 % — Unsatisfactory
The Toronto CMA lost a total of 16,500 positions in July, bringing the total number of job losses in the past two months to 27,800, offsetting the increase of 59,100 jobs created over the last four months by nearly fifty percent. As such, the Toronto index has dropped 19.6 points to 39.7 %, its lowest score in over two years. After losing 16.2 points last month, the Toronto index is continuing its downwards trend, and has dropped from the fair to unsatisfactory mark.

Over the past 12 months, employment in the Toronto region has grown by 2.3 %. This month’s index ranks 94th out of 120, meaning there were 26 months with weaker indices over the past 10 years. From July 1998 to July 2008, employment in this CMA has increased by 26 %.


  INDEX
(percent)
EMPLOYMENT SITUATION COMPARED TO JULY
ONTARIO 78.7 FAVOURABLE -9.9
Ottawa-Gatineau Region 98.6 Excellent 4.0
Toronto Region 39.7 Unfavourable -19.6