Geoff Bagg On the Real Impact of the Unemployment Rate


Recently, Bagg Group CEO Geoff Bagg spoke on SunTV about what the latest unemployment numbers from Stats Canada mean for employers and job-seekers in Canada.

While May was what economists called a “jaw-dropping” month with an increase of 95,000 new jobs, most of them full-time, June was anti-climatic. The unemployment rate stayed exactly where it was — at 7.1%

But at The Bagg Group we’ve placed more than 60,000 people in full-time, contract, and temporary placement over our 40-year history – which has included both good and tough years.  So we know that that it’s more telling to look at trends over time than to take clues from one month of data.

That said, in speaking on the morning news show AM Agenda, Geoff noted that Stats Canada numbers do have a psychological impact on everyone, from employers to job-seekers.

Geoff explained that when employment numbers rise, confidence goes up, triggering a chain effect.

  • Employers consider that the economy is on the move and are quicker to fill positions to increase their competitive edge.
  • Job-hunters are inspired to renew their efforts.  A recent Monster Worldwide survey of 6,000 candidates across North America showed that 75% feel confident they will find a job this year.
  • Good news motivates unhappy employees to start looking for new opportunities. At The Bagg Group, we make a point of ensuring the right match between a candidate and a position given that we hear from too many about job dissatisfaction.  In fact, the Monster survey found 40% of employees are hoping to change jobs.

Geoff Bagg pointed out to SunTV anchor Pat Bolland that regardless of the latest employment figures, job-hunters need to remember that they are not a statistic.  He emphasized that more people are working than not, and smart businesses always recognize that people are their greatest asset, and staff up as they need.

And the future is looking bright, even if the June numbers flatlined.  Employment in Ontario is up 1.6% compared to a year ago.  And summer employment for students is at 68%, an increase of about 5% over last year.

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