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(May 11, 2007) The strong employment gains that Canada has experienced since September 2006, started to subside in April, Statistics Canada reports. Yet, at 6.1%, the unemployment rate remains at a historic 33- year low.

Most of the growth this year has been in the service sector. So the slowdown in overall growth could be attributed to decline. The service sector was halted in April by losses in finance, insurance, real estate and leasing, which, combined, lost 17,000 jobs, as well as in “other services,” which also lost 17,000 workers.

Regardless, the service sector remains strong from earlier gains,. StatsCan points out that it has added an estimated 406,000 workers, or grown 3.3%, over the plast year. The same can’t be said for manufacturing, though, which had an overall net loss of 31,000 jobs during the same period, including 19,000 in April alone.

The results mean different things for different regions. Growth overall in Canada slowed down, but StatsCan points out that this is due to declines in manufacturing- dependent Ontario and overall declines in B.C.

Quebec, the Maritimes and Alberta all enjoyed growth. Quebec, in particular, saw its lowest unemployment rate in more than three decades at 7.2%.

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West, Newfoundland and Labrador expected to lead economic growth

(May 11, 2007) The Conference Board of Canada predicts that Newfoundland and Labrador will have the strongest economic gains in 2007, while the western provinces will remain the fastest growing region in Canada.

According to the Conference Board’s Provincial Outlook –- Spring 2007, Newfoundland and Labrador is forecast to post growth of 6.4% this year, leading all provinces. The growth may only be only temporary, though, since it is fuelled by increased mineral output, which is expected to fall off in 2008.

Alberta’s economy is still hot. However, diminished drilling activity in recent months — and weaker disposable income gains for residents compared to last year — will cause real GDP growth to ease to a sustainable 4.1% in 2007. Saskatchewan, B.C. and Manitoba will also all post strong gains this year.

Central Canada continues to struggle. The Conference Board thinks that provincial tax relief will prop up consumer demand in Quebec, but its manufacturing sector is being eroded by energy costs, global competition and the strong Canadian dollar.

Ontario will have to wait until later in 2007 and into 2008 for a stronger outlook. The ongoing challenges in its industrial sector will continue to undermine growth.

“While most of the provinces will perform well this year, weakness in Central Canada will persist due to the troubles in the manufacturing sector,” says Marie-Christine Bernard, associate director of provincial outlook. “Still, every province is forecast to post a surplus in 2007, giving provincial governments room to manoeuvre on their fiscal plans.

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CFA Institute names new chair

(May 11, 2007) Emilio Gonzalez, has been elected chair of the bBoard of Ggovernors of CFA Institute, the global, non-profit association that administers the CFA curriculum and examinations. Gonzalez will begin his one-year term beginning on September 1, 2007.

Gonzalez, the first director to be based out of Australia, is the chief investment officer for Perpetual Investments, a listed Australian wealth management company. Gonazalez replaces Vincent Duhamel, a CFA, who was based in Hong Kong.

He will be joined by the new vice-chair of the board., Brian Singer, CFA, head of Global Investment Solutions for UBS Global Asset Management.

The CFA’s iInstitute’s bBoard of governors is composed of 19 -members from seven countries and territories: United States, Canada, Hong Kong, Australia, United Kingdom, Switzerland, and Singapore.

Gonzalez said he was honoured to have been elected, noting there are a record-breaking 140,000 registrations for the CFA Pprogram for fiscal year 2007, representing a year-on-year growth of 20.1%.

“For more than 60 years, our organization has advocated for efficient, ethical and transparent capital markets that provide good investor protection. I see this as an opportunity to continue to globally promote the CFA Institute mission of education and professional excellence,” Gonzalez says.

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(05/11/07)