Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
While the Canadian unemployment rate dropped to a four-decade low at 5.8% in July, the resource sector actually gave up jobs during the same month says Statistics Canada in its Labour Force Survey released today.
Employment rose by 54,000 last month driven by gains in part-time work. Employment rose in a number of services-producing industries: educational services; health care and social assistance; information, culture and recreation; and the “other services” industry. In contrast, employment fell in most goods-producing industries, specifically manufacturing, construction and natural resources.
The number of natural resource workers was down 5,300 in July.
On a year-over-year basis, natural resources employment is little changed.
Out of the 16 industries tracked by Statistics Canada in its labour survey, natural resources gave up the most jobs in July at a 1.5% decline. Agriculture was second worst at 1.2%.
Resource category includes workers in forestry, fishing, quarrying and oil and gas, as well as mining.
Creative Commons image of Comstock miners courtesy of David
