90,000 new jobs in Montreal by 2016: BMO

The next three years will bring 90,000 new jobs to Montreal, according to a new report released today by BMO Economics.

Read: Canada adds whopping 95,000 jobs in May

The report notes Montreal’s employment rate is already near a record high, with the jobless rate at 8.2%. “Over the medium term, we expect the city to add about 90,000 jobs by the end of 2016, pulling the unemployment rate down to close to pre-recession levels at just above 7%,” said Robert Kavcic, senior economist, BMO Capital Markets.

The value of non-residential building permits sat near a record high in the twelve months through March 2013, boosted by the industrial and government sectors. The Montreal housing market has softened along with most of Canada’s major markets, with existing home sales 11% below year-ago levels in April, slumping in the wake of stricter mortgage rules implemented by Ottawa last July. Average transactions prices also cooled, up 0.8% year over year.

“The Montreal housing market remains relatively balanced by historical standards, with a sales-to-new listings ratio of 48.4% in March 2013,” added Kavcic.

Read: Condo demand mixed in big cities: BMO

A strong Canadian dollar, a higher tax burden for upper level incomes and a softening of the housing market are some of the headwinds that the city will face going forward. However, the strengthening U.S. expansion should offer much-needed support for exports later in the year, with the aerospace industry remaining sturdy on the back of aircraft orders.

Read: Canada’s big cities headed for financial crisis: CFIB

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.