Employment quality rising

On Monday we looked at the number of jobs that were being created in Canada. The quantity of new jobs is important to track because it is one indicator of a healthy economy. Another important piece of the puzzle has to do with the quality of these new jobs. Are the jobs that are being created all part time and of the minimum wage variety ? If these types of jobs are being created then the overall economic picture is less pleasing to the eye.

A new report by CIBC World Market claims that while Canada’s job creation engine is slowing the quality of jobs is on the rise.

… the main factor behind the surge in our quality measure was a favourable wage distribution of full time paid employment. And this indicator has improved notably over the past year. The number of full-time paid employees in high-paying sectors such as manufacturing of beverage, tobacco and electronic and printing products as well as mining, farm product distribution and internet services rose by a strong 6% in the past year and by 3.5% during the last six months alone. At the same time, the number of jobs in low-paying sectors such as repair & maintenance and clothing and clothing accessories, rose by less than 1% during the past year and was unchanged in the past six months.

Source:Employment Down, Quality Up, CIBC World Markets, 5pp. (pdf)