High paying jobs drive growth: CIBC

By Staff | July 12, 2012 | Last updated on July 12, 2012
2 min read

There were 155,000 new jobs in Canada in the first half of 2012. And the majority of these positions were high paying, finds CIBC.

The number of full-time paid employees in petroleum and coal manufacturing, oil and gas extraction, heavy and civil engineering construction and transportation equipment manufacturing increased 1.6%, says Benjamin Tal, deputy chief economist, CIBC.

“That is more than double the pace seen in low-paying sectors such as miscellaneous manufacturing, wood product manufacturing, textile product mills and electronics and appliance stores,” he adds

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Also, full-time employment slid up 1.1%—10 times faster than growth in part-time employment—and accounted for 97% of all jobs created during that period.

The number of paid employees grew as well, outpacing the increase of self-employed workers. On average, self-employed Canadians earn less than 80% of the income of paid employees.

Read: Employment versus self-employment

By province, the most significant improvement was in British Columbia—90% of jobs created were full-time, and many were in utilities, manufacturing and finance.

In Ontario, key drivers were a 4% increase in manufacturing employment led by high paying subsectors, such as computer and electronics, electric equipment and mineral manufacturing.

Job creation in Québec outpaced all other provinces, but the overall quality of employment fell modestly, slightly eroding the positive impact on income growth.

Going forward, Canada’s slowing global economy may mean a drop in the number and quality of new jobs.

“Export-oriented high paying jobs will not be as plentiful while a moderating real estate market will soften job creation in the construction sector,” says Tal. “Add to it the impact of public sector downsizing, and you have a surefire recipe for a slowing trajectory of employment quality in the coming quarters.”

Advisor.ca staff


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