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According to Statistics Canada, employment declined by 45,000 in July for both full-time and part-time workers. The unemployment rate remained constant at 8.6%.

July figures indicate that employment fell, most notably, among young people between the ages of 15 and 24, and among women between the ages of 25 and 54. Since October 2008, employment has dropped 414,000 among youth, and among men between the ages of 25 and 54.

Despite claims that the recession is over, Canadian businesses have not improved. Statistics Canada found that employment for private sector employees decreased by 75,000, bringing total losses since October to 436,000. Employment opportunities in accommodation, food services and construction experienced a decrease of 22,000, while there was an increase of 24,000 in retail and wholesale trade.

While Saskatchewan, and Newfoundland and Labrador experienced notable employment losses, Quebec suffered most significantly. Quebec’s employment fell by 37,000, bringing total losses since October 2008 to 68,000 (representing a decline of 1.8%). Ontario saw a small employment gain in July but has seen a faster pace of job decline since the national employment peak last fall.

Statistics Canada also found that the total hours worked has increased for the second consecutive month, and hourly wage rates have remained fairly constant—a sign for positive things to come.

Based on these findings, CIBC is predicting that there will still be positive economic growth in the third quarter. Experts are predicting that U.S. GDP growth will likely top 3% in the third quarter, but Canada will trail behind.

CIBC also warns that the employment data is positive for bond prices and negative for the valuation of the Canadian dollar and for equities linked to Canadian domestic demand.

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CARP wants stronger pension funding rules

CARP is looking for pension reform and for support from the country’s premiers. The organization is looking to rebalance the interests of plan members and their employers by strengthening deficiency funding obligations and giving pension members a higher priority in a bankruptcy.

“The need now is for the premiers and their finance ministers to sit down and start constructing the solutions and to make sure that those most affected have a seat at the table,” says Susan Eng, vice-president, advocacy, with CARP.

The current crisis has exposed the flaws in the existing pension regulatory regime; the Nortel bankruptcy and the CHCH pension fund windup are just two examples of why reform is necessary.

Recent studies indicate that Canadians are not saving enough for their retirement, and even those with workplace pensions are at risk in the current economic climate. CARP has called for a Universal Pension Plan, modeled on the Canada Pension Plan (CPP), for the estimated one in three Canadians who will retire without any retirement savings.

“Retirees ravaged by this economic downturn cannot wait for more studies. Government needs to act immediately to give them help now by increasing OAS, GIS and CPP, and better protecting the interests of those with pension plans. It is also time to act for those without pensions,” says Eng.

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BCSC finds four guilty of running Ponzi scheme

A British Columbia Securities Commission panel has found that four B.C. residents carried out a “deliberate and well-organized” fraud in a Ponzi scheme.

Hal Allan McLeod, David John Vaughan, Kenneth Robert McMordie and Dianne Sharon Rosiek violated securities laws when they traded in securities without being registered and distributed securities without filing a prospectus. The group also made misrepresentations to investors about how their money would be invested, the returns investors could expect and the risk associated with the investments.

Distributions, misrepresentations and frauds were made through Manna Trading Corp. Ltd., Manna Humanitarian Foundation, Legacy Capital Inc. and Legacy Trust Inc. Investors were encouraged to loan Manna money and were told that their money would be placed with experienced traders who had a long history of producing double-digit monthly returns through foreign currency trading.

“All of these statements were misrepresentations,” said the Securities Commission panel in its decision. “There is no evidence that Manna placed investors’ funds with foreign currency traders or that the investors’ funds earned returns from any other source. Manna had no trading profits. Manna investors did not experience the historical returns that Manna said they did. Manna had no source of revenue other than investor contributions. The trust structure was a sham.”

With more than 800 investors affected and losses totalling more than US$10 million, the group will be sentenced after submissions have been made.

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First Trust/Highland Capital Funds merge funds

First Trust/Highland Capital Floating Rate Income Fund (Terminating Fund) and First Trust/Highland Capital Floating Rate Income Fund II (Continuing Fund) are expected to merge around Aug. 18, 2009.

As a result of the merger, the redeemable, transferable units of the Terminating Fund will be de-listed at the close of trading on Thursday Aug. 13.

The Terminating Fund units will be redeemed in exchange for units of the Continuing Fund at an exchange ratio based on the relative net asset value of the units of the Continuing Fund and the units of the Terminating Fund as at the close of trading on Aug. 14.

The Terminating Fund will be terminated immediately after the merger. Terminating Fund unitholders are not required to take any action in order to receive units of the Continuing Fund in exchange for their units.

(08/07/09)