We appear to have entered one of those periods when it is important for businesspeople and policy makers to become more discriminating consumers of economic news. That’s because the divergence in the way the economy works in different parts of the country is becoming exaggerated.
The job numbers released last Friday are a perfect example.
To hear the national news, unemployment is up and we’re on the verge of a recession. But, to hear the local news, Saskatchewan is maintaining the momentum that was flagged in last week’s Conference Board report suggesting this province will lead the nation in growth this year and next.
So, here’s what the job numbers laid out. Unemployment went up nationally, down in Saskatchewan. We now sit at 4.2-percent, down from April’s 4.3-percent. Nationally it is 7.0-percent.
And here’s the difference. Saskatchewan’s economy is based on goods production, principally commodities which are not feeling the downturn. Central Canada is all about services. Saskatchewan employers in goods production added workers last month. Ontario goods producers saw their numbers fall.
