News in brief: A look at news, facts and figures shaping the world of payroll professionals

Canada’s economy churns out more jobs than expected in June • Saskatchewan employers post 13,000 jobs for second straight month • Average hours worked unchanged from April 2010 to April 2011: StatsCan • Ceridian launches mobile payroll app • Expanding CPP a risky bet: C.D. Howe Institute report • Canadian employers anticipate steady hiring pace for third quarter

Canada’s economy churns out more jobs than expected in June

Ottawa — Canada’s economy generated a surprising number of jobs in June, contrasting with other signs that economic growth is starting to slow. Net employment gains in the month totaled 28,400, Statistics Canada said, compared with the 15,000 expected by markets. The unemployment rate held steady at 7.4 per cent as more people entered the labour market. The strongest hiring took place in the transportation and warehousing industry, which has led employment gains in the past year. Employment was flat or little changed in manufacturing as well as in most other sectors with the exception of professional, scientific and technical services, which lost 19,200 workers. Some other details of the report were less upbeat. Private business continued to lag behind the government in terms of hiring, despite the phasing out of government stimulus projects. Far more part-time jobs were created than full-time ones, although the 12-month trend has favoured full-time positions. Statscan said the majority of the jobs went to women in the 25-54 age group. (Reuters)

Saskatchewan employers post 13,000 jobs for second straight month

REGINA —
Saskatchewan employers continue to create job opportunities in huge numbers. The province’s largest job-matching website SaskJobs.ca saw 13,035 job postings in June, a 45 per cent jump over June 2010. Employers from 327 Saskatchewan communities posted opportunities to the site. In the first six months of 2011, Saskatchewan employers posted 67,300 vacancies to the website, an increase of more than 13,000 over the same period in 2010. Saskatchewan also had Canada’s lowest unemployment rate at 4.9 per cent in June, the fourth consecutive month it has led the nation.

Payroll earnings increased 0.7 per cent in April from March: StatsCan

Ottawa — Wages for non-farm payroll employees increased 0.7 per cent from March to April, according to Statistics Canada. Average weekly earnings increased to $876.44. Compared with April 2010, average weekly earnings were 3.5 per cent higher in April 2011. The 3.5-per-cent growth in average weekly earnings from April 2010 to April 2011 can be attributed to a number of factors in addition to wage growth, including changes in the composition of employment by industry, by occupation and level of job experience. In six of the 10 largest industrial sectors, growth in average weekly earnings was above the national average of 3.5 per cent. Sectors leading this growth were health care and social assistance and manufacturing. The slowest growth in earnings was in construction and retail trade.

Average hours worked unchanged from April 2010 to April 2011: StatsCan

Ottawa —
The average number of hours worked per week was unchanged from April 2010 at 32.9 hours. Average weekly earnings increased in every province from April 2010 to April 2011. Growth was well above the national average in Saskatchewan, Alberta and Newfoundland and Labrador. Growth was the slowest in Prince Edward Island. The average weekly hours worked fell 0.3 per cent from March to April. Compared with April 2010, the average work week was unchanged at 32.9 hours.

Ottawa-Gatineau had highest median total family income in 2009

Ottawa —
Ottawa–Gatineau was the census metropolitan area with the highest median total family income — $89,410 — in 2009, according to Statistics Canada. Family income data from 2009 personal income tax returns had Calgary ($88,410), Edmonton ($86,250) and Regina ($83,550) coming in after Ottawa-Gatineau as the highest median family incomes in that year. The largest percentage increases in median total family income between 2008 and 2009 were in St. John’s, N.L., which increased by five per cent, Saint John, which increased by 2.9 per cent and Ottawa-Gatineau and Regina which each increased by 2.3 per cent. Notable decreases in median total family income occurred in Sudbury, Ont., which saw a decline of 5.7 per cent and Windsor, Ont., which had a decrease of 4.9 per cent, according to the census titled Family Income.

Quebec workers say vacations too short  for rest and recuperation: Survey

Montreal —
More than one-half of workers (55 per cent) in Quebec feel the number of weeks of annual vacation they’re entitled to is not enough for them to rest and recuperate — up from 43 per cent last year, according to a survey released by the Ordre des conseillers en ressources humaines agréés (CHRA), the province’s HR association. Almost one-half (42 per cent) of the respondents who feel their vacations are too short have two weeks off. Quebec workers are expected to take more vacation in 2011 than 2010 (2.24 weeks in 2011 compared to 2.18 weeks in 2010) but disparities still exist according to region, age and education, found the survey of 1,000 workers. For example, fewer employees have two weeks off in the summer in Quebec City (27 per cent) than in Montreal (31 per cent) and the rest of the province (42 per cent). Not surprisingly, it’s often the youngest workers (aged 18 to 34) who take only one week (18 per cent), found CHRA. Workers don’t tend to negotiate their vacation time when they’re hired, according to 89 of respondents who said they hadn’t done so.

Ceridian launches mobile payroll app

Markham, ONT. —
Ceridian Canada has launched a mobile payroll application for smartphones. The app, called Powerpay Web Mobile, allows Ceridian clients to review and submit payroll figures directly from smartphones. The app is available for BlackBerry for $6.99 and will be available for iPhone soon. The company plans on updating the app later in the summer to allow customers to add and edit employee profiles and enter time information remotely.

Expanding CPP a risky bet: C.D. Howe Institute report

Toronto — Expanding the Canada Pension Plan (CPP) is a risky route to addressing Canadian concerns about low incomes in retirement, according to a report by the C.D. Howe Institute. Advocates of an expanded CPP as a solution to retirement income worries often promote it as a plan with guaranteed benefits that are fully funded, said author William Robson in Don’t Double Down on the CPP: Expansion Advocates Understate the Plan’s Risks. The CPP looks like a defined benefit plan, but it’s is not, said Robson. Its retirement benefits are targets contingent on its financial condition. Past and upcoming revisions — including lower pensions for those taking them up before age 65 in both the CPP and Quebec Pension Plan (QPP) — show governments can change the targets, he said. The CPP is not fully funded and will be unable to pay its obligations with assets on hand at a point in time, said Robson. The CPP’s ability to pay promised benefits at the 9.9 per cent contribution rate now in force depends on investment returns well above those now available on Canadian sovereign-quality debt, he said. Treat the CPP like a defined benefit plan that should match its obligations with appropriate assets — the best match being the federal government’s real-return bond — and its contribution rate would need to rise above 11.3 per cent, said Robson. Adverse economics and demographics, combined with disappointing investment returns, are forcing the Quebec Pension Plan to trim benefits and raise contributions, he said. Expanding the CPP would expose other Canadians to a larger risk of similar disappointments. For the full report, go to http://cdhowe.org/pdf/BKG137_June2011.pdf

Canadian employers anticipate steady hiring pace for third quarter

Ottawa —
Canadian employers expect the hiring pace to remain steady for the third quarter of 2011, according to the latest results of the Manpower Employment Outlook Survey. One-quarter (26 per cent) of employers plan to increase payrolls in the third quarter of 2011 while four per cent anticipate cutbacks, found the survey of more than 1,900 Canadian employers. Two-thirds (68 per cent) of employers expect to maintain current staffing levels while two per cent are unsure of hiring intentions for the upcoming quarter. In Atlantic Canada, employers anticipate an upbeat hiring climate for the upcoming quarter, reporting a net employment outlook of 17 per cent, she said. Meanwhile, employers in Ontario project a steady hiring climate with an outlook of 13 per cent and Quebec-area employers anticipate a hopeful third quarter, reporting a net employment outlook of 12 per cent.

Inflation eases slightly to 3.1 per cent 

Ottawa —
Consumer costs in Canada eased to 3.1 per cent in June, after an eight-year high of 3.7 per cent in May, according to Statistics Canada. The rate is expected to continue to drop in coming months as the July 2010 introduction of higher sales tax in Ontario and British Columbia will no longer be included in the calculations, eliminating 0.6 points off the rate. Lower prices for passenger vehicles were the main reason for June’s reading, as it fell 3.1 per cent in the 12 months prior, following a 0.7 per cent increase in May. Traveler accommodations also decreased to 2.9 per cent after increasing 3.3 per cent in May.  Energy prices advanced 15.7 per cent during the 12 months to June, following last month’s 16.6 per cent increase. On a year-over-year basis, gasoline prices increased 28.5 per cent, which is slightly less than the 29.5 per cent gain in May Prices for food purchased from stores rose 4.8 per cent in the 12 months to June continuing last month’s growth of 4.2 per cent in May.

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