N.B. Economist ‘Optimistic’ After Latest Job Numbers
The latest job numbers suggest the economy is starting to head in the right direction, according to one New Brunswick economist.
Canada’s unemployment rate hit a record high of 13.7 percent in May, but employment rose for the first time since February.
David Campbell, the president of Moncton-based Jupia Consultants Inc., said what we want to see now is a sustained recovery.
“We shouldn’t be as focused on the high nominal unemployment and unemployment rate,” said Campbell. “We want to be focused on the direction of travel and hopefully that’s going to start turning in the right direction now as more of the economy opens.”
“The data today would make me feel pretty optimistic that we’re heading in the right direction.”
Employment across Canada grew by 290,000 in the month of May, but that is only a fraction of the more than three million jobs lost in March and April due to the COVID-19 shutdown.
In New Brunswick, which lost close to 50,000 jobs over the course of two months, employment grew by nearly 17,000 in May. The unemployment rate also fell by 0.4 percentage points to 12.8 percent.
Campbell said the province has fared much better than just about everywhere else, in part because it was able to reopen much sooner.
“Total employment on a seasonally-adjusted basis is only down around nine percent since February across the province and less in some of the larger urban centres,” he said.
The question now, said Campbell, is how the province and the country can get back onto the full road to recovery.
He said there are two areas that should be focused on to help with economic recovery.
“You have to focus on ensuring that local businesses can get back on their feet and follow the protocols and social distancing and everything that we’re doing. Also equally important is to support the export economy to make sure they’re back and successfully exporting goods and services to other jurisdictions” said Campbell.
“I think there’s a hard road ahead for us but it’s not nearly as bad as some people had thought.”