Copyright: include link to this article on top of reproduction if you use it.
“Not only did their stimulus fail to create the jobs of tomorrow, it also failed to protect the jobs of today,” Scott Brison, the opposition Liberal Party’s spokesman for finance issues, said by telephone. “Most of us were shaking our heads in disbelief early last year with the size of the employment growth,” said Douglas Porter, deputy chief economist of BMO Capital Markets. “Most of us thought it was too good to be true and it turns out it was too good to be true.”
Canada’s statistics agency cut its job-creation estimate and erased an earlier finding the economy recouped losses from the last recession, bringing fresh calls from opposition lawmakers for Prime Minister Stephen Harper to rework his stimulus plan.
There are 104,600 fewer Canadians with jobs than previously estimated, Ottawa-based Statistics Canada said today, while the unemployment rate is unchanged at 7.6 percent. The revisions stem from new labor force data that reflect 2006 census figures, the agency said in a statement, versus prior reports based on the 2001 census.
The figures show that reductions in the business income tax rate are not creating jobs and the economy still needs stimulus, said Thomas Mulcair, the finance spokesman for the opposition New Democratic Party, in a telephone interview today.
According to the revised figures, employment fell 2.5 percent, or 427,900, between its peak in October 2008 and July 2009. Between July 2009 and December 2010, the economy created 398,000 jobs. The changes mean December employment levels were 0.6 percent below the previous estimate. The agency had said before the revisions the economy recouped the recession’s job losses by last August. Source (1) globe and mail
There is too much emphasis on the raw numbers – and too much emphasis by government trying to take credit. So we are 30,000 jobs short. That’s not the issue. Job numbers are almost meaningless unless it measure total increase in house hold income. That number has been flat and declining for 20 years, in real, after tax, after inflation numbers. Are the jobs that replaced the old ones better jobs? We recovered almost all the jobs, but Canada’s productivity lags badly. Meanwhile, the Americans are still 7 million jobs short of recovery, but their productivity is up. There is a lot more at stake here than the number of jobs.
They have to be good jobs. And we have to find a way to raise productivity. The smiling politicians are happy to take credit for “the jobs”, ut are nowhere to be found with any real solutions to our long term competitiveness (productivity).
There’s a weird sense of Deja Vu in this news, as though it’s the government’s fault for using the data that was before them in previous talking points. It’s typically Canadian probably.
What we have to realize in Canada is that we will constantly have to retool our economy as our dollar gets stronger. That’s what Germany and Japan did in the wake of WW2, every time that their currency appreciated and made their current exports less competitive. They retooled, and moved to higher-value manufacturing, etc. We have to do the same; we have to boost our productivity, and concentrate on the value-added jobs and services, because we can’t compete against the likes of China, India or Mexico for the low-value manufacturing jobs.
That’s why the corporate tax reduction plan is necessary, to free up the capital that businesses will need to make those investments in productivity enhancements. Any Canadian business out there that doesn’t do that will basically die a slow death, like berries on a dead vine. Hopefully we have enough business people out there with enough sense to realize this. We haven’t in the past, and partly it’s because of our overly cautious, risk-averse culture as Canadians.
Every time anyone suggests that Canadian firms might actually have to compete, we get a long list of excuses as to why we are somehow different. Indeed, the German analogy is particularly apt, pace the help their economy has gained from the devalued Euro.It is so reminiscent of Britain in the 70′s. Instead of investing in retooling the way France and Germany did, they went on strike at the mere suggestion of it, then wondered why their clients did not want to buy their products.
If Canada wants to become really competitive it has completely overhaul taxation system. It cost us and the governments $30 billion a year to administer and comply with this system. I’m suggesting to replace all taxes and fees at all levels of government with the Composite Business Levy. It is not a new tax. It just replaces all taxes and payroll deductions with one lump payment. It is fully automatic does not require tax returns and reporting and does not change level of taxation for anybody. Does not change the cost structure of the products and services and the cost of implementation is negligible.
More proof of false recovery
Friday’s revelations mean Canada was likely not the first country in the Group of Seven industrialized nations to recoup its job losses from the crisis.
For one, the German labour market looks to have already recovered.
Canadian Auto Workers union economist Jim Stanford pointed to the “myth” of Canada’s labour recovery just a couple weeks ago.
With the working-age population growing at 1.5% a year, the economy must create 30,000 jobs just to keep up, he said in a recent report.
Despite the sobering update from StatsCan, Canada’s job market is still outperforming that of the U.S. To date, the U.S. has recovered only about 15% of the jobs lost in the recession. Source: Canoe (2)
Should we be afraid of protectionism?
People need to stop being afraid of tariffs, this is what will save our manufacturing. I know there are people here who are afraid to speak out against the Free trade Dogma people because they don’t want to be called names. Don’t be afraid! You are not an isolationist Or whatever stupid name they will call you.
They are wrong and whats happening today is a result of THEIR dogma. We need reasonable trade barriers that protect us versus the slave wage/currency manipulator nations. If we don’t do something we are doomed and we all know it (other than the ninnies who want our country to go down the hole because of some sort of weird hatred for ordinary people who did stupidly spend a fortune to get an “education” who make more money than they do.)
- US unemployment reaches 10 per cent; government hiding real numberBernanke on Unemployment: ‘we don’t think it will get to 10 percent’ A better measure of unemployment is the U-6 numbers and this would make the real number around 17.5...
- Canadian tourism heavily affected by downturn, passport requirementIn a previous article we explored how the sex industry is a forgotten economic barometer never used in analysis. However, economists do use tourism statistics in their findings —...
- US dollar close to rare parity with Canadian loonieCanada’s loonie hits parity with U.S. dollar Greenback also reached a new record low against the euro By the Associated Press The dollar took another fall on currency markets Thursday,...
- IEA warns rising oil prices threaten economic recovery, if there ever was one“Oil is one of the most important inputs to the economy. If the oil prices go up much higher than what we have been seeing in the markets, this would...
- Canadian economy hollowed out by central banking, free trade agreements‘We are hollowing out our industrial base.’ — Avery Shenfeld, CIBC economist. CIBC calls for loonie intervention ‘Go pick on some other currency,’ CIBC economist Shenfeld says A high-profile Canadian...
- Chinese ban on Canadian canola shocks industry“China has blackleg within their own country,” Weber added. “So it’s a red herring.” It is quite obvious now that the world’s major trading powers, China and the USA, are...
This entry was posted on Wednesday, February 2nd, 2011 at 6:42 pm and is filed under North America. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.