Men Under Age 55, Public Sector Employees Lose Ground

A recent survey by Stats Canada reveals an increase in employment of 1.6% or 286,000, all in full-time work over a 12 month period.

Over the same period, the total number of hours worked also rose 1.7%. However, while these employment numbers are strong, a closer look reveals that employment numbers for men and public sector employees have decreased. 

In addition, decreasing levels of employment were noted for January in Ontario and British Columbia while there were offsetting increases in Alberta, Saskatchewan, and New Brunswick throughout the same period.

The largest change in any sector was a roughly 27,000 job decrease in the public sector. Private sector numbers remained relatively stagnant, but there was an increase noted in the amount of declared self employed persons, no doubt in response to the requirement to earn a living.

A troubling aspect of the survey is that employment is decreasing among Canadians aged 25 to 54. Employment in January declined by 58,000 among people aged 25 to 54 (recognized as the “core-age group”), and these decreases were noted predominantly for men. Compared with 12 months earlier, however, employment among all people of core working-age rose 0.9%. Also, employment rose among youths aged 15 to 24, reducing the unemployment rate for this group by 0.6 percentage points to 13.5%, still a high number.   

Tax and financial advisors can be of particular assistance to higher earning individuals who have lost their jobs in 2012, ensuring that a clawback of Employment Insurance is avoided, with an RRSP contribution. The clawback occurs when net income exceeds $57,375.