Close X
Sunday, September 29, 2024
ADVT 
National

Whoops! Make that 42,000 July jobs, not 200, Statcan says in corrected report

Steve Rennie, Canadian Press, 15 Aug, 2014 11:01 AM
    The once-stellar reputation of Statistics Canada took a huge hit Friday with the release of a correction to one of its flagship reports.
     
    The national statistical agency reported a week ago that the economy gained a paltry 200 jobs in July — raising the eyebrows of economists who thought the number would be closer to 20,000.
     
    But it turns out that figure was way off the mark. The revised July jobs report shows a net gain of a whopping 42,000 jobs.
     
    Statistics Canada blamed the botched numbers on an overhaul of its market-moving Labour Force Survey, an exercise it undertakes every 10 years.
     
    One of the programs wasn't updated during the redesign — a mistake the agency chalks up to human error — resulting in the number of full-time job losses being overstated.
     
    The corrected figures show there were in fact 18,000 full-time jobs lost in July, a far cry from the 60,000 losses reported last week. Statistics Canada says the error resulted from not counting some people as part of the labour force.
     
    The number of part-time gains remains unchanged at about 60,000.
     
    The mistake did not change Canada's unemployment rate, which stayed at seven per cent in July, down a tenth of a point from the previous month.
     
    Philip Cross, former chief economic analyst for Statistics Canada, said it would be wrong to make the erroneous July jobs report out to be part of some widespread problem within the agency.
     
    The Conservative government's decision to scrap the mandatory long-form census and replace it with the voluntary National Household Survey — which led to the resignation in protest of chief statistician Munir Sheikh — had nothing to do with the flubbed job numbers, Cross said.
     
    That's because they're based on population estimates from the short-form census, which remains mandatory.
     
    Nor is it likely the latest wave of budget cuts had anything to do with the mix-up, Cross said — most recent job cuts were through attrition. Even so, the latest error surely won't help the agency's ailing reputation, he added.
     
    "What's changed is not the reality at Statcan, where, actually, the reality is data quality has been improving. What's changed is perception," Cross said.
     
    "People are examining every little mistake and going, 'Is that a sign that the place is falling apart?'"
     
    That said, economists didn't come down too hard on Statistics Canada for the error.
     
    "It's obviously an embarrassment to have an error of this scale in such an important series," said CIBC chief economist Avery Shenfeld, "but better to have admitted the mistake and fixed it and put processes in place to make sure it doesn't happen again than to try to have buried it under a rug somewhere."
     
    The big picture is more important than monthly snapshots, said Finance Minister Joe Oliver.
     
    "Monthly employment numbers can be volatile," Oliver said in a statement. "What is more important is the long-term trend of job growth in Canada"
     
    The bungled July jobs report had real consequences for people making new employment insurance claims. Ottawa put a hold on all new claims until Statistics Canada fixed the mistake.
     
    That's because the monthly jobs report is used to determine regional unemployment rates, which directly impact the number of weeks an unemployed person needs to have worked in order to qualify for EI benefits.
     
    Statistics Canada put on a brave face Friday, insisting it remains confident in the quality of its data.
     
    "I am fully confident in the integrity of the Labour Force Survey program," chief statistician Wayne Smith said in a statement.
     
    "This was an isolated incident. Statistics Canada does and will continue to publish high-quality and relevant statistical information on all aspects of the Canadian economy and society."
     
    The agency says it has launched an internal review to find out what went wrong and why no one noticed the mistake.

    MORE National ARTICLES

    BC teachers will begin rotating strikes starting next week

    BC teachers will begin rotating strikes starting next week
    BC teachers strike is moving in to its next phase with the commencement of rotating strikes from next week. BC Teachers' Federation said the union will hold one day walkouts in every school district across the province.

    BC teachers will begin rotating strikes starting next week

    Climate Alert: Glaciers in British Columbia Rapidly Melting

    Climate Alert: Glaciers in British Columbia Rapidly Melting
    The mountains of British Columbia cradle glaciers in west Canada are in rapid retreat, which has become a major climate change issue, a media report said Sunday, citing an American state-of-the union report on climate change.

    Climate Alert: Glaciers in British Columbia Rapidly Melting

    Narendra Modi takes Canadian Media by storm

    Narendra Modi takes Canadian Media by storm
    Narendra Modi, set to become the next prime minister, will have to move quickly on India's huge expectations with the world watching, a leading Canadian daily said.

    Narendra Modi takes Canadian Media by storm

    Stephen Harper congratulates Narendra Modi, praises Indian democracy

    Stephen Harper congratulates Narendra Modi, praises Indian democracy
    Congratulating India's prime minister-elect over his victory, Canadian Prime Minister Stephen Harper says he is looking forward "to working with Mr. Modi and the new government of India to further strengthen our social and economic partnership to the benefit of our citizens."

    Stephen Harper congratulates Narendra Modi, praises Indian democracy

    Aboriginal Women suffer disproportionately from violence, says RCMP

    Aboriginal Women suffer disproportionately from violence, says RCMP
    An RCMP report has put forth a shocking disproportionate number of female aboriginals being victims of violent deaths as compared to non-natives. The report also mentions that police have solved cases involving both groups at almost a similar rate.

    Aboriginal Women suffer disproportionately from violence, says RCMP

    Jason Kenney to introduce new Temporary Foreign Worker rules: report

    Jason Kenney to introduce new Temporary Foreign Worker rules: report
    Federal Employment minister Jason Kenney will be brining in at least two new rules pertaining to businesses that want to hire temporary foreign workers, according to a CBC report. 

    Jason Kenney to introduce new Temporary Foreign Worker rules: report