The Canadian automotive sector accounts for 9% of all jobs in this country. Based on what has been happening within their industry, it appears the Canadian "employment rate" is about to drop. So it doesn't look good but I'm sure there is some good news here right?
General Motors, Ford and Chrysler are all running out of money. Nouriel Roubini explains the impact of "bailing" out the industry as a whole. The economy will worsen in the coming months and cause the market to fall another 20 to 25 percent in the United States and abroad, said Nouriel Roubini, the New York University business professor, on CNBC’s “Squawk Box” on Monday.
“There's going to be negative growth all the way to the end of 2009," he said. “The surprises from now are going to be on the downside, for the economy, for earnings, for the financial system."
Job losses will accelerate in the next months, Roubini said, and he expects a weak economic recovery in the short and mid-term.
“There's going to be a very slow recovery, because you have the financial system that's impaired; earnings are not going to grow very fast, and therefore the stock market will go sideways for quite a while,” he said.
Wow. While I'd like to say he's just being negative, Roubini predicted much of the mess we are in now back in 2006. With the latest announcement from the US fed that they are not bailing out the big 3 automakers until they get their houses in order, it looks more and more like one or all of them will need to restructure their "economic" situation. Lower salaries across the board and fewer private jets for executives will be a step in the right direction. If you had not noticed, all of the Dominion grocery stores are now "Metro". Following in the direction of Loblaws and their "Great Canadian Superstores", you can probably expect something similar in the auto industry.