(This is an excerpt from an article I originally published on Seeking Alpha on May 15, 2013. Click here to read the entire piece.)
Friday’s employment report from Statistics Canada demonstrated once again how the public sector is leading the way in job growth in Canada:
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So, jobs in the private sector are stagnant, and self-employment generated most of its gains in the past year in a one-quarter burst. Meanwhile, the public sector is showing the healthiest job growth.
As a result, Canada has experienced very little progress in driving down unemployment over the last two years.
Source: Statistics Canada – Labour Force Survey, April 2013
Canada’s sluggish job market parallels the slow progress in the U.S. However, at least in the U.S., the private sector is leading the way in job creation. In fact, the public sector continues to shrink. I consider Canada’s relative under-performance to be yet one more strike against the Canadian dollar versus the U.S. dollar (FXC). The Canadian dollar remains over-valued, and the Canadian economy will perform much better once it finally weakens again.
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Source: FreeStockCharts.com
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Be careful out there!
(This is an excerpt from an article I originally published on Seeking Alpha on May 15, 2013. Click here to read the entire piece.)
Full disclosure: long USD/CAD