Canada’s jobless rate inched up to 7.3% last week after the country shed 2,300 jobs in the month of February. This is the highest level in nearly 3 years as one of the most energy-dependent countries in the world moves to the brink of recession.

We warned about an increasing threat to the Canadian economy as capital outflows increased in a November article titled Investors Abandon Canada.

Alberta leads Canadian economy lower

Alberta continues to lead the losses to Canada’s economy as energy-related jobs fall by the way side.

Alberta is enduring one of its worst downturns in more than a generation. Articles such as Alberta endures most annual job losses since early 1980s recession are being published and negative sentiment is feasting on itself as the price of oil remains below $40 per barrel.


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Alberta’s unemployment or jobless rate reached 7.9% in February. This is the highest level since it hit 8.2% in August 1995. Alberta lost more jobs in 2015 than it did in 2009 during the Great Recession.

CFO’s fret over Canadian economy

Canadian CFO’s have turned sour on the economy, at least according to a recent CFO Global Business Outlook study conducted by Duke’s Fuqua School of Business.

The study took comments from 1,600 CFO’s around the world and those at Canadian corporations believe Canada has a 42% chance, on average, the country will fall back into recession by the end of 2016.

John Graham, a finance professor at Duke’s Fuqua School of Business and director of the survey, released the following comment:

“Last June, the odds of recession were low in many countries, including the U.S., Canada and much of Europe. Today, driven in large part by slowing emerging economies and volatile financial markets and commodity prices, the risk is relatively high around the world.”



The usual suspects were to blame as CFOs pointed to China, a potential stock market decline and the struggling price of oil as the most significant risks to the economy. With the Bank of Canada holding the benchmark interest rate at 0.5%, investors and money managers alike have to be hoping Canada’s economy will diversify as Trudeau’s deficit spending policy takes shape.



This article represents solely the opinions of Alexander Smith. Alexander Smith is not an investment advisor and any reference to specific securities in the list referred to in the article does not constitute a recommendation thereof. Readers are encouraged to consult their investment advisors prior to making any investment decisions. The information in this article is of an impersonal nature and should not be construed as individualized advice or investment recommendations.