The markets are expected to react this morning, especially on the meagre number of jobs created in the US. The figures released by the Departmen of Labour fell well short of the expected number. The U.S. economy only created 80,000 jobs in June, leaving the unemployment rate at 8.2%. The Canadian economy created 7,300 jobs, after a strong job numbers this spring, but the unemployment rate nodged down to 7.2%, making it neither good or bad news.
The U.S. figures are a blow to President Obama, whose re-election is though to hinge on the economy. Nonetheless the Democratic talking points will point to yet another month of positive job creation in the private sector. The GOP will use the meagre job numbers to point out that the President's policies are not working.
CanadaCanada's government recently announced the cutting of 19,000 public service jobs, a move that has raised criticism. Statistics Canada pointed to the fact that the dip was due to fewer people searching for work.
Today's job numbers indicate that the economy in the US is slowing to a snails pace with very little growth. Consumer confidence also appears to have dropped with major retailers reporting less consumer spending.
In contrast, Canada was viewed as one of the most optimistic countries with two out of three people stating that the economy is heading in the right direction. Despite the optimism Canadians are not necessarily endorsing the governments austerity policies, with 53% believing that government should "invest in jobs and growth". 37% believe the government should do both equally. In the US and Greece pessimism is highest.
Taking the economy into account, both the President and his challenger Mitt RomneyMitt Romney should lay out their plan for moving the economy ahead. Sadly the campaign has come down to mudslinging, where Romney's wealth is attacked and whether or not the ObamaCare mandate is a tax or a penalty. Both campaigns should really demonstrate to the public how they plan to dig the economy out of the ditch. After all it's the economy, stupid.
