Dec. 4, 2020

THE BANK OF MOM & DAD, RBC HOME BUYING SENTIMENT POLL (IN THE PANDEMIC)

  • 25% loaned money to their adult children to purchase a home (on average $60,513) and only 49% expect to get paid back.
  • 60% of Canadians view housing prices in their region as unaffordable. 8% stated it was almost impossible to buy a new home on their own or even afford the rent.
  • 66% are worried that the rich are getting richer. Parents worry about the next generation and their children being able to afford a home.  Therefore, many parents are prepared to share their wealth through a “living inheritance”, allowing them to see their children enjoy home ownership, while they are still there to experience it.
  • 81% said they believe home ownership is a good investment.

CANADA’S LABOUR FORCE, NOVEMBER

  • Unemployment in Alberta increased from 10.7% to 11.1%. This does not include the new public health restrictions introduced at the end of November.
  • 276,600 Albertans looking for work in October and almost 11,000 jobs were lost in November.
  • 122,500 fewer people working in Alberta vs. a year ago, in Canada there were 481,700 fewer jobs y/y.
  • Canada’s employment grew by 62,100 (forecast was +20,000). With the participation rate falling to 65.1%, Canada’s unemployment rate dropped from 9.0% to 8.5%.
  • On a regional basis Ontario added 36.6K, British Columbia 23.9K and Quebec 15.7K. Manitoba lost 18.1K and Alberta lost 10.8K.
  • there are a at least 1.5 million employees in Canada who are still on the wage subsidy program, and this continues to grow. This program has been prolonged until June 2021.

BIPARTISAN PROPOSAL

  • Anticipated that $908 billion relief package will be passed before yearend.
  • Includes $288 billion in Paycheck Protection Program small business loans.
  • $300/week supplemental jobless benefit.
  • $160 billion for state and local governments that face cuts to essential services.
  • Puts money into COVID-19 vaccine distribution, education, transportation and rental assistance.

US UNEMPLOYMENT

  • Nonfarm payrolls rose 245,000 in November, well below the consensus 460,000.
  • Labour participation rate decreased from 61.7% to 61.5% (400,000 people fewer looking for work) and the unemployment rate dropped from 6.9% to 6.7%.
  • The number of people unemployed for longer than 27 weeks has increased to 3.9 million from 3.6 million.
  • Job gains were in transportation and warehousing by 145,000. Retail lost 35,000 in the month and they have lost 550,000 since February.
  • More than 1 in 10 Black workers remain unemployed.
  • In November, Black workers had a jobless rate of 10.3%, Hispanic workers 8.4%, Asian workers 6.7%, and white workers 5.9%.

TIDBITS

  • According to CNN News, Donald Trump’s Election Defense Fund has raised over $170 million.
  • Wall Street Journal report claims US Justice Department is in talks with Meng Wanzhou over deal to set her free in exchange of admitting guilt.