Cheap gas, solid hiring and a strong housing market help Canadians weather the financial storm
A recent spate of frightening economic headlines paints a dire picture of the economy, but an examination of some basic gauges of Canadians’ financial health demonstrates it’s not all doom and gloom.
- TSX, Dow charge higher as market gloom over China dissipates
- Oil climbs above $42 US a barrel after stocks rebound
- Students, those approaching retirement more vulnerable to market swings
News of plummeting oil prices, the struggling stock market and a loonie that recently dipped below the 75-cent US level for the first time in more than a decade have Canadians on edge and fearful for their their futures, as economists debate whether this country is in a recession.
But already, things are looking up. The North American and global stock markets surged on Thursday, oil rebounded to above $42 US a barrel and the Canadian dollar recovered to above the 75-cent line.
While the effects of the economic downtown on Canadians should not be downplayed, there are plenty of reasons not to panic — hiring remains steady, home values are up, gas prices are down, people are generally managing their debt responsibly and most Canadians have nice nest eggs of savings and investments.
1. Most people are working
Hiring has remained steady in Canada despite a shrinking economy. (CBC)
The most recent job numbers from Statistics Canada show that employment in Canada is steady and job growth is modest.
In July, the economy created 6,600 additional jobs, and the unemployment rate remained at 6.8 per cent for the sixth straight month.
“Make no mistake, this is not a strong report … but it’s also not notably weak,” BMO chief economist Douglas Porter told CBC News at the time. “While many have been quick to label this year’s economic performance a recession, the job numbers just haven’t backed that up.”
As of July, Canada had added 100,000 jobs in 2015, despite a major downturn in the oil and gas sector.
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