Group items tagged

"radical restructuring" of industry, Mr. Tal says, where "much more is being produced with less labour."

In Canada, where overall industrial production has stabilized in recent quarters, manufacturing activity in capital intensive sectors has also outpaced activity in labour intensive sectors, though to a lesser degree than in the U.S

Examples include Canada's chemical, electronics and computer manufacturing sectors that still utilize a much lower capital-to-labour ratio than in the U.S.

The high labour intensity of Canadian manufacturing means that jobs growth here will be relatively stronger during the economic recovery to meet demand, even with a strong Canadian dollar. "However, given the increased prevalence of better-capitalized and more efficient production facilities stateside, Canadian manufacturers will find it even more difficult to compete when the dust settles."

even the government’s own report shows that Canadian imports (of both goods and services) from the EU will increase by twice as much as Canadian exports to the EU, substantially widening the existing bilateral trade deficit.

exports grew less rapidly with FTA partners than with non-FTA partners, but imports grew quicker with FTA partners than with non-FTA partners. 

In the real world, free trade agreements (not surprisingly) tend to make existing trade imbalances even worse: this is true throughout economics, where deregulation generally tends to exacerbate the imbalances and unevenness of market outcomes.

Three scenarios are presented: one in which tariffs are mutually eliminated; one in which EU-Canada trade expands in line with the historical experience of Canada’s previous FTAs; and one in which tariff elimination is combined with the appreciation of Canada’s currency (versus the euro) which has been experienced in fact since the two parties launched free trade negotiations.  In every case, the bilateral trade balance worsens significantly (and in the third scenario, it worsens dramatically – since the higher Canadian dollar reduces Canadian exports, even as imports from the EU are surging).  Based on average employment intensity across 23 goods-producing industries, the simulations suggest an incremental loss of between 28,000 jobs (in the first scenario) and 150,000 jobs (in the third).  Direct losses in Canadian GDP range between 0.56 percent in the first scenario, and almost 3 percent in the third.

A free trade agreement with the EU will exacerbate Canada’s existing large bilateral deficit, at the expense of output and employment in many important sectors of the economy. 

The labour market is not going to create any further inflationary pressure, either coming from wage (gains) or the general strength in the labor markets," said Sebastien Lavoie, assistant chief economist at Laurentian Bank Securities.

In further signs of slowing, Canada's labour report said the economy shed 24,000 full-time positions in February, partially offset by the addition of 39,000 part-time jobs. The number of self-employed workers rose, while the number working in the private sector edged lower.

The February jobless rate was unchanged at 7.8 per cent, versus the 7.7 per cent forecasts by analysts in a Reuters poll.

The average hourly wage of permanent employees — which is closely watched by the Bank of Canada for inflation pressures — rose 2.5 per cent from February 2010, up from 2.3 per cent year-on-year rate in both January and December.

"It probably lowers the probability of any near term tightening by the Bank of Canada and as a result (will) probably weigh on the Canadian dollar," said Paul Ferley, assistant chief economist at the Royal Bank of Canada.

This challenge ... will be more pronounced across the economy than that suggested by the comparatively high rates of unemployment," he said. "The sectoral shifts evidenced across the economy over the past decade — and in particular away from manufacturing to services — has created an increased mismatch in job skills along with the growing problem of skills atrophy."

Long-term, the solution is education and training, but there are limits on what can be done in the near-term, Mr. Burleton said.

Indeed, the gap between richer and poorer regions is likely to widen in many countries as the public-spending axe falls. Nowhere will this effect be more striking than in Britain. Cities in the north and Wales are much more dependent on public-sector jobs and welfare benefits than cities in the south.

Bottom line: Despite genuinely booming imports, trade flows still kept dragging down America’s growth and employment performance, and still kept boosting the country’s debt burden.  Do these trends really deserve the label “recovery”?

Putting in place restrictions on executive bonuses, taxing financial transactions and corporate profits does little to mitigate the flawed incentives that have led to exuberant financial booms. A genuine solution would consist of eliminating bailout guarantees to the banking sector, thus reducing the existing incentives for gambling with other people’s money.

the rise of cheap imports from countries such as China and new forms of large-scale retailing, epitomized by Wal-Mart and Sears, which have given the low-income groups access to goods that previously were enjoyed only by the rich. In terms of the actual material conditions of living, developed countries appear to be more equal than ever before.

growth of executive remuneration in the financial industry cannot be dissociated from a cozy relationship that has long existed between policymakers and bankers

Temporary workers tend to earn less than permanent staff, they get little or no benefits and many can be fired without notice

The earnings gap between a permanent and a contract worker is about 13 per cent, while between a permanent and casual worker the gap is about 34 per cent

Labour is typically a company’s most expensive cost, and a contingent labour force helps reduce costs

What staffing agencies dub “flexible” work, unions call “precarious.”

With the recession and the resulting slackness, employers are in a position where they can offer no security, no benefits, unreliable hours and lousy pay – and still have people apply. And that will persist until either the labour market picks up or we put some restrictions in place on how precarious employment works

Lower pay leads to weaker consumer spending, restricts workers’ ability to get a mortgage and makes it more difficult to save for the future.

$8.7-billionRevenue from temp industry in Canada in 2009 (up from $1-billion in 1993).158,000Number of Canadians employed in temp services in the past year, up six per cent from year earlier.13%Estimated earnings gap between a permanent worker and a temporary contract worker.

We will not give in to Opposition demands to impose

This reckless policy would lead to continuing deficits and higher taxes on all Canadians. It would stall our recovery, kill hundreds of thousands of jobs and set families back.

We need to keep protecting and creating jobs now

Keeping taxes low A key part of that foundation is low taxes.

Our tax cuts are also helping employers to invest, grow and create jobs.

Our government will take further action to encourage them to expand and create jobs.

The Hiring Credit for Small Business will provide a one-year EI break for some 525,000 Canadian small businesses

Expanding international trade Beyond this, we will promote new export opportunities for all Canadian businesses

We will provide greater financial security for Canadians, and practical help to make ends meet.