Advertisement

Calgary restaurant opening contributes to surprise January jobs boost

WATCH: More than 35,000 jobs were added in January, far surpassing what economists were predicting. But look a little deeper, and the news is not so promising. Reid Fiest explains.

Opening its doors in late January, Rodney’s Oyster House is serving up plenty of oysters in downtown Calgary — and jobs.

One hundred new full- and part-time staff were hired to open up the restaurant.

Opening in the middle of an economic slowdown, brought on by slumping oil prices, has its challenges. But, also has an advantage said owner Rodney Clark.

READ MORE: Alberta job market keeps rolling in spite of oil shock

“I think I lucked out because the downturn in the economy,” Clark said the ease of hiring staff for his first restaurant outside of Toronto.

Story continues below advertisement

Clark was one of many employers who helped prop up Canada’s job numbers for January.

Get expert insights, Q&A on markets, housing, inflation, and personal finance information delivered to you every Saturday.

Get weekly money news

Get expert insights, Q&A on markets, housing, inflation, and personal finance information delivered to you every Saturday.
By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy.

Numbers not quite what they seem

To everyone’s surprise, the unemployment rate dropped to 6.6 per cent last month, with the addition of 35,400 new net jobs

ATB Financial economist Todd Hirsh was among the economists who didn’t expect the positive numbers. But, he warned it’s not all good news.

There 47,200 part-time jobs added to the Canadian economy in January, but 11,800 full-time jobs were shed.

“You know, that’s better than no job at all, but it is a quality issue. [Part-time work] pays less. Often benefits aren’t there to the same degree,” he said. “So, it is a poorer quality of job creation that we’re seeing.”

He noted part-time jobs also offer more flexibility to reduce hours for employers.

More of a shock than the nation numbers were the job figures in Alberta, where the jobless rate dropped from 4.7 per cent in December to 4.5 per cent in January.

Story continues below advertisement

That’s despite 8,800 oil industry jobs lost across Canada last month.

READ MORE: Oil surges again on signs companies slow production

But, Hirsch cautioned the worst may still be coming.

“I think [in] February… finally we are going to start to see the results of this,” he said. “It might not be as bad as we think, but at some point we will see some outright job losses.”

Clark is realistic about the rough waters his seafood business could face, but he’s also realistic, noting his oyster house has a way for customers to survive a slowdown.

“Instead of having a dozen [oysters], you can have six,” he said.

Sponsored content

AdChoices