Eagle Vision Quarterly Newsletter

June 2014

Richard L. Simms
President
Black Eagle Executive Search

 

Employment news in Canada would still be described as “tentative” as is shown by the June Labor Report Survey by Statistics Canada released on July 11, 2014:

Employment was little changed in June and the unemployment rate rose by 0.1 percentage points to 7.1% as more people were searching for work.

Compared with 12 months earlier, employment increased by 72,000 or 0.4%. This was the lowest year-over-year growth rate since February 2010, when year-over-year employment growth resumed following the 2008-2009 labour market downturn.

Employment decreased among youths aged 15 to 24 and people aged 25 to 54 in June, while it increased among people aged 55 and over.

Employment fell in business, building and other support services as well as agriculture. At the same time, there were more people working in construction and 'other services.'

In the United States, employment statistics were more robust as reported by the U.S. Bureau of Labor Statistics on July 3, 2014:

 

Total nonfarm payroll employment increased by 288,000 in June, and the unemployment rate declined to 6.1%, the U.S. Bureau of Labor Statistics reported today. Job gains were widespread, led by employment growth in professional and business services, retail trade, food services and drinking places, and health care.

 

In June, the unemployment rate declined by 0.2 percentage point to 6.1 percent. The number of unemployed persons decreased by 325,000 to 9.5 million. Over the year, the unemployment rate and the number of unemployed persons have declined by 1.4 percentage points and 2.3 million, respectively.

 

So, as noted in previous newsletters, the economic rebound from the recession commencing in 2008 has been stronger in the U.S. than it has in Canada. However, as the U.S. economy continues to improve, it will strengthen Canadian employment as our largest trading partner.  

 

For the home improvement industry in Canada, the housing market reflects the above employment trends as reported in the Second Quarter 2014 report of CMHC:

 

Total housing starts are expected to moderate to 181,100 units in 2014 before reaching 182,100 units in 2015, as modest increases in employment and household disposable income provide support to housing demand. Builders are expected to continue to adjust activity, particularly with respect to multi-unit construction, in order to manage inventory levels.


Existing home sales are expected to rise moderately along with economic conditions over the forecast horizon. On an annual basis, sales through the Multiple Listing Service are expected to reach 457,900 units in 2014 and 471,100 units in 2015.


In terms of Black Eagle’s Executive Search business, search assignments continue to be on a replacement basis for dismissed or retiring employees with very few job opportunities in newly created positions.

Contact Black Eagle

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