{"id":16211,"date":"2016-01-08T12:05:00","date_gmt":"2016-01-08T17:05:00","guid":{"rendered":"http:\/\/olduvai.ca\/?p=16211"},"modified":"2016-01-08T12:05:00","modified_gmt":"2016-01-08T17:05:00","slug":"canadas-job-recovery-will-reflect-growing-divergence-between-resource-and-export-sectors-don-pittis","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=16211","title":{"rendered":"Canada’s job recovery will reflect growing divergence between resource and export sectors: Don Pittis"},"content":{"rendered":"
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Canada’s job recovery will reflect growing divergence between resource and export sectors: Don Pittis<\/a><\/h3>\n<\/div>\n

Bank of Canada governor Stephen Poloz says rebuilding Canadian economy might be a 5-year healing process\u00a0<\/strong><\/p>\n

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Bank of Canada governor Stephen Poloz says the country is on track for slow job growth. But also expect a growing divergence between a weakening resource sector and a slowly recovering export economy. (Todd Korol\/Reuters)<\/p>\n<\/div>\n<\/div>\n

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“The chart between oil and the Canadian dollar looks like a pair of train tracks,” said Bank of Canada governor Stephen Poloz\u00a0in Ottawa Thursday.<\/p>\n

As Poloz was speaking, fears of a meltdown in China, one of the world’s biggest resource consumers, was sending Canada’s commodities-heavy stock index\u00a0to a\u00a0bear market<\/a>\u00a0close.<\/p>\n

The governor’s folksy description of oil and loonie plunging in perfect parallel was in sharp contrast to what he sees as the result of that plunge: a sharp\u00a0divergence, not just between the U.S. and Canadian economies\u00a0but between Canada’s\u00a0shrinking oil and resources\u00a0sector and a recovery in other parts of the economy.<\/p>\n

That double divergence is expected to show\u00a0up in the jobs market\u00a0\u2014 and the recovery won’t be quick.<\/p>\n