Hello Canada The Recession is Coming 100,000 Jobs to Be Lost: Report
Scary news for Canada as when before Canadians knew the economy was slowing down, analysts now predict the recession is to hit hard in several sectors of the economy. According to the report:
Canadians are in store for a harsh winter of economic news with substantial job losses mounting in the next few months as recessionary times take hold, the Global Insight forecasting firm says.
Managing director Dale Orr says the country will lose 100,000 jobs in the first three months of 2009 and believes Canada has already entered the first recession in 17 years.
Unlike the slowdown earlier this year, which was mainly been concentrated in the business community and the stock markets, this "will feel more like a recession" because of the significant job losses.
Orr said job losses will likely occur in the beleaguered auto sector and forestry - two hard-hit areas - but also in the construction trade as house starts fall, tourism and the financial services sector in response to the crisis in stock markets shock. "Main Street hasn't felt this (slowdown) yet because we've had pretty good labour markets but the next year going forward the labour markets are going to show it," Orr said.
Orr said Canada's jobless rate will rise from the current 6.2 per cent to 7.2 per cent at the end of next year.
The revised Global Insight forecast comes amid two other reports that suggest Canada's economy is in for a rougher ride than most official sources, particularly political leaders, are currently willing to acknowledge.
The Deloitte consulting firm's annual survey on retail spending trends found that 40 per cent of respondents intend to curtail their purchases this holiday season, as opposed to 25 per cent who said so in last year's survey.
It seems as though the impacts of the credit crisis and global recession are finally about to reach Main Street, Canada. The big question is are we ready for this?