Not a good for Canadian job market.
Apart from cutting jobs, Nortel is outsourcing 1,000 positions to lower-cost locations. Note that Nortel has significant presence in China and naturally Chinese govt. want their people to work for Nortel in China.
So much for the Nortel hype and tax payers money.
Location: British Columbia
Posted on: 08-02-07 12:17:07
Perhaps it will not have such a big impact for all of Canada (though of course it affects those individuals who will be laid off).
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~ Morning rain
You know it does.
Quote:
Originally posted by morning_rain
Perhaps it will not have such a big impact for all of Canada
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The cowards never started,
The weak died on the way,
Only the strong arrived.
http://www.youtube.com/watch?v=_yK1i9cLAMM
Location: British Columbia
Posted on: 08-02-07 17:47:16
Quote:
Originally posted by JRF
You know it does.
Quote:
Originally posted by morning_rain
Perhaps it will not have such a big impact for all of Canada
How can nortel's layoffs affect canada's economy?
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~ Morning rain
Loss of jobs amounts to loss of tax revenue to the federal/provincial govts. Firms showing loss will end up with less or no corporate taxes (I am nolt sure abt this). That's again tax revenue loss for the govts. Also there other firms who act as sub-contractors that depend on Nortel. A small firm abt 45 staff closed their operations in Ottawa last week as they could not muster enough work from Nortel. Note that Nortel CFO quit last week “to pursue other interests”. Did the guy knew what was coming?
Reduction in income will reduce the spending, most of the time. Not only those who are laid off, others will be more careful before making major commitments for spending.
DIO
Location: carl sagan's universe
Posted on: 10-02-07 00:37:02
http://www.globeinvestor.com/servlet/story/RTGAM.20070209.wjobs0209/GIStory/
Red-hot job market raises eyebrows
TAVIA GRANT
Friday, February 09, 2007
Canadian companies continue to hire workers at a surprisingly rapid pace, driven by strong labour demand in the country's westernmost provinces, Statistics Canada said Friday.
The latest jobs report, however, further illustrates the stark contrast between employment growth and Canadian economic growth, which has been stuck in the doldrums in recent months.
The Canadian economy added 88,900 jobs in January and for the second month in a row the labour market far exceeded forecasts. Economists had expected just 13,000 new jobs last month, after the economy added a revised 52,500 positions in December alone. The number of employed Canadians now sits at a record high, Statscan said.
Some market watchers, however, including Finance Minister Jim Flaherty, were cautious about drawing too many conclusions from the data.
“I always take monthly figures with a grain of salt because they don't necessarily detect trends,” Mr. Flaherty told reporters in Rome. “I'd rather look at quarterly figures — and longer periods of time,” he said.
Canadian companies have been hiring over the past year amid buoyant Western economies, a robust housing market and strong consumer spending. More evidence of that came Friday, with The Home Depot Canada saying it plans to add more than 7,000 part-time, seasonal and full-time people for its busy spring period.
But, despite the number of jobs added, January's jobless rate rose a notch to 6.2 per cent as more people looked for work, Friday's report showed.
“Jobs are on fire while GDP growth is on ice,” said Douglas Porter, deputy chief economist at the Bank of Montreal. Still, “the really good news for the Bank of Canada is that the economy is essentially at full employment and yet wage growth is if anything moderating.”
Mr. Porter doesn't expect the central bank to cut interest rates and sees the next move as a hike, some time next year.
The currency markets seemed to share that view Friday as the Canadian dollar sailed past 85 cents (U.S.) on the strength of jobs numbers and the reduced odds that interest rates will be cut.
Looking at the provinces, employment rose by about 32,000 in British Columbia and by 24,000 in Alberta, sending their employment rates to record highs in January, Statscan said. Manitoba and Saskatchewan also posted record employment rates.
January's growth was equally split between full-time and part-time positions.
Most job gains over the past year have been full-time, though in recent months that's shifting to part-time work.
Among industries, gains came mostly from four industries: information, culture and recreation; professional, scientific and technical services; accommodation and food services as well as natural resources.
The manufacturing sector, which has shed hundreds of thousands of jobs in recent years, was little changed in January as weakness in Ontario was offset by gains in Alberta and Manitoba.
In January, the share of the working-age population who were employed across Canada hit a record 63.4 per cent.
© The Globe and Mail
Challenges standard concepts?
Western provinces are doing very well, no doubt, coutesy oil sector. What abt Ontario and other eastern provinces where mfg and hitech are two of the biggies?
