Penn West says it is cutting 400 jobs as it reduces spending amid the recent decline in the price of oil.
Photo Credit: AP / Matthew Brown

Recession official in Canada; Alberta job losses mount

A recession, defined as two consecutive quarters of economic decline in the national economy, was confirmed this morning in Canada. The Canadian economy shrank in several sectors, but the month of June showed modest gain.

The collapse in oil prices has hit Canada hard, with the Canadian dollar matching previous lows. Exports have not fully recovered and one of the only sectors still in positive territory is housing, and some of that can be credited to foreign investment.

All these facts and figures are being bandied about with variations on the interpretation in the federal political campaign today. The three major political parties are using the news of the recession to support and justify their approach and their policies.

Conservative party leader Stephen Harper says it is not a time to change governments, he’s advising Canadians to stay the course and return the Conservatives to power. Tom Mulcair, leader of the New Democratic Party, vows to balance the budget while restoring some of the program cuts under the former Conservative government and invest in job creation

Liberal leader, Justin Trudeau, maintains it is time to stimulate the economy with spending on infrastructure improvements. He would oversee thee years of deficits to restore confidence and the healthy functioning of the economy.

Canada is officially in a recession, after two consecutive quarter of economic losses, albeit slim ones. Still, signs are that the economy will continue to struggle this year, as Canada posts the poorest performace of GDP growth compared to many other developed countries.,
Canada is officially in a recession, after two consecutive quarter of economic losses, albeit slim ones. Still, signs are that the economy will continue to struggle this year, as Canada posts the poorest performace of GDP growth compared to many other developed countries., © via CBC

Economists have pointed out this is the second recession in seven years. Canada can’t be isolated from the vagaries of the global economy.

The new provincial government in Alberta announced a $5 billion Cdn deficit yesterday.  Today there is new of more massive lay-offs In Calagary. Penn West cut 400 jobs in an effort to reduce spending amid the recent decline in the price of oil. 

ConocoPhillips Canada, another major player in the oil and gas industry, announced it is reducing its workforce by 15 per cent, affecting 400 employees and 100 contractors.

These developments follow the estimated 35,000 jobs that disappeared out of the oil-patch. The Canadian Association of Petroleum Producers say  25,000 positions from the oil services sector have been cut and 10,000 from exploration and production.

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