By Dennis DesRosiers
(RICHMOND HILL, ON) – Six month automotive employment data from Stats Can’s Labour Force Survey (LFS) presents a puzzling picture. Motor vehicle manufacturing, for example, shows a large decline at -19.8 per cent, followed by parts and accessories manufacturing at -8.6 per cent.
Vehicle dealers saw a relatively small decline of -3.9 per cent, while automotive repair and maintenance enjoyed a remarkable 15.5 per cent growth.
This data, however, seems somewhat incongruous with other industry variables. For example, shipments from the parts manufacturing sector are up 3.0 per cent YTD, while the employment numbers show an 8.6% drop. Similarly vehicle production in Canada is down only 1.9 per cent making the nearly 20.0 per cent drop in employment troubling.
On the dealer side, given the record level of vehicle sales so far in 2014, a 4.0 per cent drop in dealer employment seems unusual.
Stats Can does an excellent job of producing data, with often far too limited resources. Indeed, it is of note that Stats Can’s SEPH survey presents a somewhat different picture of employment trends showing gains in all four of these sub-sectors as of May 2014.
DAC will be providing further analysis of these variables as we move forward throughout the year.
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