Job Losses Are Reserved for the Private Sector

There is widespread agreement that Canada, the U.S. and many other countries are now in the midst of a recession. How serious and how long the recession will be are uncertain (see yesterday's post). What is certain, however, is that all the pain of job loss in Canada is being felt in the private sector.

From June to December 2008, 114,000 jobs were lost in the private sector. Meanwhile, the public sector added 39,000 jobs.

Recessions mean falling revenues for companies and governments. Falling revenues cause companies in the private sector to lay off employees. Not so in the public sector.

Any chance that there will be job losses in the public sector during this recession? I am guessing no, and I'll keep you posted as new data are released.



Note: Statistics Canada defines public sector employees as those who work for a local, provincial or federal government, for a government service or agency, a crown corporation, or a government-funded establishment such as a school (including universities) or hospital.