Exchange rate and employment
While considerable extent lessening foreign demand for Canadian products, domestic consumption gradually recovered thanks to flourishing oil sector, which provides most jobs for residents of Alberta province. The improvement in growth in employment has expanded into the economy, when 54.9 thousand new jobs added in March were the result of an acceleration scale employment services sector.
However, it led slowdown in wage level increase, from -2.8% to -2.2%, for new employees not employed in the oil-rich areas, where shortage of labor brought jump in wages, but the services sector. Nevertheless, the increase in the labor market began to toll the entire economy, as retail sales (excluding automobiles) rose in January by 0.3%, after jumping by 1.9% in December. In addition, Ivey purchasing managers index rose to -67.3 when the business reported an improvement not only in the scope of employment, but also profitability. Furthermore, the leading economic index of the country rose by 0.7% – biggest rise since June 2004 – when the optimistic mood led up the stock market, the volume of new orders of durable products, sales of furniture.
On the other hand, the Canadian labor market movement towards the service sector comes at the expense of the manufacturing sector. Although this natural development we witnessed even in Britain and Europe – most extensively in the United States – but Canada is still considered a central component in the production sector of the economy because of the importance of export activity. In fact, the moderation in GDP growth, which was in January of 0.1% – the slowest pace recorded in the past four months – was primarily the result of the slowdown in output of manufacturing sector, fell by 1% despite improved trade Ivey Purchasing Managers Index. In general, In light of the weak data would follow the Bank of Canada concern for the negative impact that might be slowing manufacturing sector on economic expansion.
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