Canada Unemployment Rate Hits 7-Year High at 8%

by Jordan Yerman | April 9, 2009 at 06:31 am

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Canada's unemployment rate has hit a seven-year high, as Canadians lost over 60,000 jobs last month, taking into account job loss vs. new-job creation.

From industry to finance, and from small towns to Bay Street, Canada sees its unemployment rate hit 8%. Such numbers were forecast, but I kind of hate it when analysts are right.

The recession has eliminated 357,000 jobs so far in Canada, a drop of 2.1 per cent in the number of positions since October. That's the biggest five-month plunge since the deep 1982 recession.

Half of last month's job losses were in manufacturing, as the auto industry continues to flounder. However, a slim majority of Canadians are opposed to a US-style taxpayer-funded auto industry bailout, as Ottawa approves a total of $4 billion in interim loans to GM Canada and Chrysler Canada.

Fifty-one per cent disagree with the decision by the federal and Ontario governments to commit $4 billion in short-term loans to General Motors of Canada Ltd. and Chrysler Canada Inc.

And 63 per cent believe these companies should declare bankruptcy if they can't make a go of it in the global auto market.