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Job creation in 2012: better quality positions

 
The CIBC Canadian Employment Quality Index shows that during the first six months of 2012, the quality of the 155,000 jobs created improved. A trend which is not likely to be sustained over the next few quarters.
 

Statistics Canada had already measured the strong performance earlier in the year in terms of job creation with 140,000 new jobs created during March and April. The CIBC Canadian Employment Quality Index now brings further qualitative details. Having grown 1.2% during the first half of 2012, it has returned to a level similar to that seen before the recession. The index combines three different data: the distribution of the number of part time jobs compared to full time jobs, the distribution of the number of independent jobs compared to the number of salaried jobs and the quality of compensation for full time salaried jobs.

 
More full time jobs
In the report, we learn in particular that full time jobs increased by 1.1% in the first six months of 2012, or ten times faster than part time jobs. In addition, they represent 97% of all jobs created during the period. Another item of data noted is that the number of employees increased by 1% during the first half of 2012 while the number of independent workers grew by 0.1%.
 
Progress was greatest in British Columbia, with resultant job creation in well paid sectors such as public services, manufacturing and finance. Quebec did not show similar results. From the data collected, the general quality of jobs created declined despite many new positions.
 
Short term phenomenon
Unfortunately, the trend is not likely to continue over the next few quarters. The slowing of the global economy is likely to affect the quality of future employment. In the future, well paid jobs will be fewer in the export industries, job creation in construction will be limited by the cooling housing market and the workforce will be cut in public services.

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