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Thursday, July 16, 2009

Canada More Confident About Hiring as Ontario Catches Up

According to the Bank of Canada’s Business Outlook report, Ontario businesses are not as optimistic regarding hiring as companies in other Canadian provinces.

The Bank of Canada released this and another report on July 13 2009. Both are bullish about the Canadian economy yet bearish on Ontario’s payroll statistics. The central bank said "On balance, firms expect to increase the level of employment over the next 12 months… Hiring intentions have improved in all sectors but continue to be relatively weak in some regions, notably, in Ontario."

Out of 100 companies interviewed between May and June of 2009, only 39% expected to increase payrolls during the next year and 17% expected declines. The last report in April said that 25% were optimistic and 26% were expecting payroll cuts.

The central bank did not explain why Ontario was not as confident regarding hiring. Michael Gregory of BMO Capital Markets, a private-sector economist, pointed to the manufacturing sector saying that the survey was conducted during the shutdown of Chrysler LLC's business operations and prior to the emergence of the new General Motors Company.

Meanwhile, the Conference Board of Canada issued its own report forecasting moderate growth for the Canadian economy which would cause the GDP to diminish by 1.9% in 2009 yet is expected to bounce back in 2010 by 2.7%.

Despite these hiring trends, 61% of Canadian businesses are more positive about future sales despite the credit crisis. Only 33% of respondents suggested that credit conditions have tightened within the last few months.

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