P.E.I. job numbers disappointing, says Lantz

Progressive Conservative Leader Rob Lantz is questioning whether the P.E.I. government will be able to reach revenue targets given the latest job numbers.

Unemployment on P.E.I. has hit its highest rate since May of last year.

The unemployment rate in July was 11.6 per cent, up from 11.1 per cent in June.

In May of 2014 unemployment hit a high of 12.2 per cent but then the rate fell dramatically, dropping below 10 per cent for five consecutive months for the first time since the 1970s.

Since that time, however, the rate has been on an upward journey. In October there were 74,500 jobs on the Island. In July there were just 72,200.

In a news release, Lantz questioned whether the trend in job numbers is compatible with revenue projections in the provincial budget. Finance Minister Allen Roach projected a six per cent growth in income tax revenue this year.

"The provincial budget is relying heavily on growth to lower the deficit, an approach bond rating agencies have expressed caution about," said Lantz.

"These latest job numbers don't reflect the impact of a series of budget cuts to the non-profit sector so this trend of negative job growth may yet continue."

Nationally there was an increase in the number of jobs, and the unemployment rate was steady at 6.8 per cent.

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