Canada Applies U.S. Method to Prove Lackluster Job Growth

Canada’s job market lost its edge over the U.S. for the first time since the financial crisis, adding to evidence the 11th-largest economy is flagging.

Statistics Canada said today it applied the U.S. Bureau of Labor Statistics’ methodology to its data to show both countries had a 6.1 percent unemployment rate in June. Canada had a lower rate since May 2008 by that method.

“The last recession resulted in more severe employment losses in the United States than in Canada,” the report said. “Since the beginning of 2014, however, employment growth has been higher in the United States than in Canada.”

Statistics Canada’s calculations boost its reported unemployment rate versus how the U.S. would come up with the numbers. For example, Canada includes 15-year-olds who are more likely to fail in their job search. Using the U.S. framework would have lowered Canada’s unemployment rate by 0.9 percentage point on average between 2007 and 2013, compared with the Ottawa-based agency’s regular figures.

By the conventional measure, Canada’s jobless rate exceeded the U.S. rate in December for the first time since dropping below it in October 2008, and was 7.1 percent in June. The agency reports July data next week.

To contact the reporter on this story: Greg Quinn in Ottawa at gquinn1@bloomberg.net

To contact the editors responsible for this story: Paul Badertscher at pbadertscher@bloomberg.net Chris Fournier, Theophilos Argitis

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