Article source: CMDGroup
Note: The graphs (‘New Graphs’ and ‘Canada Graphs’ tabs in excel file) are integral to the article, but the text is actually standalone.
There’s a diversity of ways to assess the strength of an industry within the broader context of the overall economy. Stock market investors prefer to look at profit levels and price-earnings ratios. Financial institutions focus on debt and cash flow. Economists often choose jobs levels.
Whether or not employment is on the upswing can give a pretty good indication of which way firms in a particular sector are leaning in terms of investment spending or construction projects.
Previous Economy at a Glances have featured employment-level charts for key U.S. sub-sectors. Similar graphs have now been developed for Canada and they are featured in this EAAG.
The underlying data for the U.S. and Canada comes from surveys of employers. A significant point of difference, however, is that the U.S. numbers are seasonally adjusted. For Canada, they are moving 12-month averages of not seasonally adjusted (NSA) figures, placed in the latest month.