Eagle Vision Quarterly Newsletter

June 2011

Richard L. Simms
President, Black Eagle Executive Search

 

Effective this month, the Eagle Vision Quarterly Newsletter will be issued 10-14 days past the calendar quarter ends, so that the latest Canadian employment and housing data can be included.  Statistics Canada employment data and CHMC housing starts data are usually released 1 to 2 weeks after each month end.

 For June 2011, Statistics Canada reported the following on July 8, 2011

 'Employment rose for the third consecutive month, up 28,000 in June. The unemployment rate was unchanged at 7.4% as the number of people participating in the labour market increased. Over the past 12 months, employment has grown by 238,000 (+1.4%).”

 

 Meanwhile, housing starts for June were reported by CHMC on July 11, 2011 as follows:

"Housing starts increased in June due to an increase in single and multiple starts in Ontario", said Bob Dugan, Chief Economist at CMHC's Market Analysis Centre. "The revised numbers show  that housing starts have been above their trend line since March. However, we expect housing starts to move back towards levels consistent with demographic fundamentals in the near term."

 

 The above two reports accurately reflect the state of the home improvement market in Canada – slow growth over the first 6 months with a poor first quarter and a recovering second quarter reflecting poor spring weather across the country and a flat economy.

The economic situation in the U.S.A. is much worse than Canada at present as the U.S.A is still struggling with a weak housing market, sluggish retail sales, and continuing concerns about the U.S. national debt.

The continuing debt crisis situation in the European Union countries is also eroding confidence in prospects for a growth economy for the balance of 2011 and into 2012.

From a job applicant point of view in the home improvement market, an odd anomaly is occurring. Despite Canada still having above long term average unemployment at 7.4%, applicant responses to employment ads in the 2nd quarter and into early July have been much lower than in the 1st quarter of 2011. For example, an advertisement for a sales position in January 2011 garnered 240 responses. 3 months later, an advertisement for a similar sales position received less than 100 applications. The only rationale that can be determined is that many unemployed individuals in the home improvement industry found work in the first quarter of 2011, thus reducing the number of applicants in the second quarter.

If any of the readers of this newsletter can provide other reasons for this significant drop in the number of job applicants recently, Black Eagle Executive Search would like to hear from you at info@blackeagle.ca  

 

Contact Black Eagle

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