P.G. Unemployment Rate At Record Low
Friday, July 5, 2013 @ 8:24 AM
Prince George, B.C- The unemployment rate in Prince George last month was the lowest since 1996. The rate fell to 3.8%, down from 6.9% recorded in June of 2012, and from the 4.5% recorded in May.
Analysts say there is little to celebrate though as the drop is more likely an indication that people who have been unemployed have withdrawn from the labour force. Statistics Canada’s Vincent Ferrao says the Prince George number is an "estimate" and it is based on a small sample size "It could actually be plus or minus 2%. We have seen levels in this range before, in May of 2007 when the Prince George estimate was 3.9%" . Ferrao says the Prince George labour force declined from 53,700 recorded in June of 2012, to 50,200 last month.
For the Cariboo, unemployment last month was 5.0%, down from the 7.8% recorded in June of 2012. Ferrao says this figure is based on a larger sampling area and is likely more accurate than the Prince George numbers.
The Provincial rate was 6.3 down from 6.6% in June of last year.
The National rate held steady at 7.1%
Comments
That is one statement I don’t understand fully. How can you withdraw from the labour force in enough numbers to affect the labour numbers? People becoming stay at home moms and dads? Going on welfare? Retiring?
Over 3000 people just decided that they’re not working anymore?
When one is unemployed long enough and the EI runs out they are no longer counted as being in the labor pool. If enough people have their benefits run out due to lack of finding work, then the unemployment numbers drop substantially as is the case here.
If the workforce drops by 6% then this can make the unemployment numbers look good if it corresponds with a drop in those collecting benefits by as much or more as the benefits have run out.
I like how the United States releases the figures on the various ways the unemployment rate can be calculated (taking into account discouraged workers and the under employed ). I do not think Statistics Canada does things the same way.
http://www.bls.gov/news.release/empsit.t15.htm
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