Montreal is jobless capital of Canada
Published Thursday, August 13, 2015 12:59PM EDT
Last Updated Friday, August 14, 2015 12:12PM EDT
UPDATE: An earlier version of this story contained an incorrect figure pertaining to jobs created in Quebec last month. The article has been updated with the correct statistic issued by Statistics Canada of 20,000.
According to Statistics Canada, the jobless rate in the Montreal metropolitan area is 8.9 per cent, several percentage points higher than the Canadian average of 6.8 per cent.
Despite the creation of more than 20,000 jobs in Quebec last month, it seems to be high-paying jobs that have been disappearing from the region, with several high-tech companies announcing layoffs recently.
This week CAE announced it was eliminating nearly 300 jobs from its flight-simulator facility, while other aerospace companies, such as Bombardier and Bell Helicopter, have also laid off several hundred employees this year.
The underlying question is: Why is Montreal struggling to create employment?
Some analysts point to demographics, and say that as a centre for immigration its population is growing faster than jobs can be created.
Others point to the decline in resource extraction, and say that a large sector of Quebec's economy is based in the Primary Sector, which has a ripple effect on many jobs in Montreal.
Quebec's Council of Employers points out since the Couillard Liberals were elected, Quebec has actually created about 40,000 new jobs, and the hope is with the low Canadian dollar, Quebec will create even more jobs in the manufacturing sector.
President Yves-Thomas Dorval said with so many people looking for work, the opportunity exists to improve matters.
"We want to reverse a little bit the mood right now that is more austerity to prosperity because we need to create an environment where people will feel that it's time to invest," said Dorval.
He added that with the price of oil slumping on world markets, investors shying away from the Prairies would be looking to other areas with potential, such as Montreal.