Eagle Vision Quarterly Newsletter

June 2010

Richard Simms
President, Black Eagle Executive Search

Statistics Canada reported June 4th that employers in Canada added 24,700 jobs in May and 310,000 jobs have been created since the labour market started recovering in July 2009 meaning most of the losses from the recession have been recouped. Virtually all the growth since July has been in full-time positions, and private-sector hiring has picked up in recent months. The jobless rate stayed at 8.1% in May.

 

In the meantime, the economic situation in the United States remains worse than in Canada with the unemployment rate at 9.7% in May. Housing sales continue to fall exacerbated even further by the oil spill in the Gulf of Mexico which has considerably slowed sales in states neighboring the Gulf.

 

The decision of the G8/G20 nations at the recent Toronto summit to set targets for debt-laden wealthy nations to halve their deficits by 2013 and stabilize or reduce debt-to-GDP ratios by 2016 may further retard global economic growth. For countries like the U.S. and Britain, halving deficits “means pulling money of the economy through a combination of spending cuts or tax hikes, while hoping improved public finances spur private-sector activity to mitigate the impact.” (Globe and Mail, June 28, 2010).

 

For the Canadian home improvement market, the majority of manufacturers and distributors are having a better year in 2010 than in 2009 and the mood at the National Hardware Show in Las Vegas May 4-6th this year was much more upbeat than last year.

 

In regards to retail sales, Statistics Canada reported that in April 2010 “Sales at building material and garden equipment and supplies dealers decreased 2.0%. While monthly levels have fluctuated widely in recent months, sales of this store type have been on an upward trend since the beginning of 2009”.

 

From an employment perspective, there is definitely more hiring activity in 2010 than last year across a broader spectrum of job functions - Black Eagle Executive Search has conducted searches for sales, operations, purchasing and general management positions this year. There is more confidence than last year in hiring for open positions and still an excellent pool of candidates available.

 

As we head into the summer of 2010, hiring in the home improvement industry will take its usual hiatus until Labour Day and then there will most likely be the usual fall hiring surge in anticipation of newly established 2011 budgets.  Progress towards global economic recovery will continue to dictate how strong the employment market will be, and it will be interesting to continue to follow how well the G20 countries do in meeting the ambitious economic targets they set at the G20 Summit in Toronto.

 

Contact Black Eagle

Telephone: (416) 458-9969
Email: info@blackeagle.ca