In North America

While some gains are made, unemployment remains high in North America

On February 3rd, millions of Americans celebrated one of the most positive jobs reports that have been released since President Barack Obama was inaugurated more than three years ago. According to the BLS’s “The Employment Situation – January 2012” report, roughly 243,000 jobs were added to the national economy in January. The BLS also found that the United States’ unemployment rate had fallen to 8.5 percent – the fifth consecutive month in which the rate has declined. The United States has not recorded such an optimistic streak since 1994.

Meanwhile, as the United States’ neighbors, Canada and Mexico, currently recover from weakened economies as well, some global economists are concerned that each of the nations’ recoveries are progressing at a slower pace than had originally been predicted. Unemployment is still quite high. Inflation is still impacting the livelihoods of millions of families. And, citizens’ confidence levels are still very low.

But, did either of the two countries report encouraging news in January? Are there any signs that economic recovery will continue in 2012? Read on for reports from Canada and Mexico.

Canada:
According to recently released figures, Canada’s labor force was comprised of approximately 18.8 million citizens in January. Of these individuals, about 17.4 million were employed on either a part-time or full-time basis. In addition, nearly 14 million Canadians were working full-time and receiving annual salaries or were being paid according to the total amount of hours in which they worked. In the meantime, although 2,300 positions were added to the national economy in January, the country’s unemployment rate rose to 7.6 percent last month. Prior to January, Canada’s jobless rate had ranged from 7.2 to 7.5 percent throughout the second half of 2011.

Furthermore, the Bank of Canada’s benchmark interest rate remained at one percent for the 17th consecutive month. A majority of economists, both within and outside of Canada, had anticipated that the rate would not change. And, unfortunately, the bank’s deposit and bank rates did not increase or decrease either, as they remained at 0.75 and 1.25 percent, respectively. There are currently no signs that any of these rates will be raised or lowered anytime soon, at least within the next three to six months.

Mexico:
Ever since the end of the Great Recession in 2009, Mexican residents have been especially concerned with one aspect of the nation’s economy – high inflation rates. And, unfortunately, their concerns only intensified last month, as the country’s Consumer Price Index (CPI) rose by four percent from January 2011 to January 2012, a .02 percent upturn from December’s year-to-year CPI of 3.8 percent. Mexico’s CPI has now expanded for five successive months – and has not been lower than 3.1 percent since July 2011.

Additionally, one characteristic of Mexico’s economy stayed the same again last month – the Central Bank Rate. The Bank of Mexico has not expanded or contracted this rate at all since August 2009, an astonishing 29 straight months. And, of particular interest, the rate has lingered at 4.5 percent throughout the last two-and-a-half years. Currently, the bank’s neutral nominal rate is about 6.5 percent.

US:
For more information, please visit www.workplaceeconomy.com.