As the year draws to a close, Canadian economic sentiment is far from cheery. As threat of the U.S. fiscal cliff looms, many fear another recession is imminent – despite optimistic economic predictions from a recent RBC survey.
It’s the time of year when we shake off the old year and look ahead to guess what the new one will bring. 2011 was a mixed bag of economic drama: real estate, stock market, jobs and other indicators seemed down as often as they were up. What about 2012? The verdict is mixed, the debt crisis in Europe being the pivotal factor. Here’s what’s up for the year.
Canada’s unemployment rate has fallen to 7.1 per cent. This all sounds great, but why does the outlook for job growth still feel sluggish and gloomy? If you look deeper into the numbers, the job creation comes after two months of basically no growth in the labour market. In fact the unemployment rate rose in August. So don’t believe the newspaper headlines that say “Employment surges in September.” They should be adjusted to read, “Employment plays catch up in September.”