Main menu:

History of RPE Thought

Posts by Tag

RSS New from the CCPA

  • A critical look at BC’s new tax breaks and subsidies for LNG May 7, 2019
    The BC government has offered much more to the LNG industry than the previous government. Read the report by senior economist Marc Lee.  
    Canadian Centre for Policy Alternatives
  • The 2019 living wage for Metro Vancouver April 30, 2019
    The 2019 living wage for Metro Vancouver is $19.50/hour. This is the amount needed for a family of four with each of two parents working full-time at this hourly rate to pay for necessities, support the healthy development of their children, escape severe financial stress and participate in the social, civic and cultural lives of […]
    Canadian Centre for Policy Alternatives
  • Time to regulate gas prices in BC and stop industry gouging April 29, 2019
    Drivers in Metro Vancouver are reeling from record high gas prices, and many commentators are blaming taxes. But it’s not taxes causing pain at the pump — it’s industry gouging. Our latest research shows that gas prices have gone up by 55 cents per litre since 2016 — and the vast majority of that increase […]
    Canadian Centre for Policy Alternatives
  • CCPA welcomes Randy Robinson as new Ontario Director March 27, 2019
    The Canadian Centre for Policy Alternatives is pleased to announce the appointment of Randy Robinson as the new Director of our Ontario Office.  Randy’s areas of expertise include public sector finance, the gendered rise of precarious work, neoliberalism, and labour rights. He has extensive experience in communications and research, and has been engaged in Ontario’s […]
    Canadian Centre for Policy Alternatives
  • 2019 Federal Budget Analysis February 27, 2019
    Watch this space for response and analysis of the federal budget from CCPA staff and our Alternative Federal Budget partners. More information will be added as it is available. Commentary and Analysis  Aim high, spend low: Federal budget 2019 by David MacDonald (CCPA) Budget 2019 fiddles while climate crisis looms by Hadrian Mertins-Kirkwood (CCPA) Budget hints at priorities for upcoming […]
    Canadian Centre for Policy Alternatives
Progressive Bloggers

Meta

Recent Blog Posts

Posts by Author

Recent Blog Comments

The Progressive Economics Forum

Economy Lab at the Globe and Mail

Here’s my take on Canada’s jobs recovery, written for the Economy Lab.

The Economy Lab is a new on-line feature of the on-line business section of the Globe and Mail, part the newspaper’s extensive print and electronic make-over launched on October 1.

Editor Rob Gilroy has made it a lively spot. The Daily Mix is full of links to interesting readings, There are short pieces from the Globe’s stable of high-octane reporters, And they’ve started a brand new section of daily pieces from a wide array of Canadian economists.

I’ve been asked to be a regular contributor. This website will of course provide grist for the mill. But I also invite suggestions from you, dear reader, for topics you think should be brought to the attention of this diverse audience.

The full text of my Economy Lab article is below, but you should check out their site if you haven’t already.

The Harper government loves to refer to Canada’s post-recession track record with the phrase “we’re punching above our weight.”

If only it were true.

When it comes to the true measure of recovery – jobs – Canada is not punching above its weight. In fact, we’re still waiting for a meaningful private-sector-led full-time jobs recovery.
Between October, 2008, and July, 2009, the Canadian labour market lost a stunning 503,000 full-time jobs and a total of 588,000 permanent jobs. That’s worse than any rate of job loss in a nine-month period since before the Second World War.

This week’s economic and fiscal update by Finance Minister Jum Flaherty trumpeted “All of the jobs lost during the recession in Canada have now been recouped.”

Reality check: Compared to October, 2008, Canadians are still short 224,000 permanent jobs and 162,000 full-time jobs.

There are only about 60,000 more public sector jobs than two years ago, and while private sector job creation showed some momentum this past summer, that has since dissipated.

gmoct152010

As the chart shows, the pool of private sector jobs is still down by 140,000 compared to October 2008. The types of jobs have changed too.

Canada’s job recovery has been fuelled by self-employment, temporary work (contract, seasonal and casual work), and part-time positions — three categories which, together, are called precarious employment by labour economists.

As of September 2010 almost four in 10 Canadian jobs (37.6 per cent) were precarious. These jobs are here today, gone tomorrow. They provide unpredictable income streams even when you are working – hardly the foundation for a sturdy recovery.

Today, more than half of Canada’s 1.5 million unemployed (55 per cent) can’t access jobless benefits, and many Canadians will lose their homes if they encounter a big a drop in income.

This should be a red flag for governments, which have, thus far, played a critical role in stabilizing the labour market as the private sector caved in. Now many of them are eyeing cuts and work force attrition to balance their own books.

Until the private sector recovery finds its legs and starts hiring people under less-tentative terms, governments should not cut spending, and jobs. It may actually put the books into worse shape, both public and private, since Canadians haven’t been this exposed to the economic risks of joblessness in generations.

Savings rates are at levels last seen in the late 1930s, access to jobless benefits at levels last seen in the early 1940s, and household debt just keeps breaking record after record. Six in ten Canadians say they are living from paycheque to paycheque.

We’d all like to punch above our weight, but when it comes to describing Canada’s job recovery, the analogy falls short.

Enjoy and share:

Comments

Comment from Paul tulloch
Time: October 16, 2010, 4:09 pm

Great article Armine and I am glad you are getting the opportunity to participate in the globe’s ‘economy lab’.

However, i did happen to notice that Stephen Gordon follow up on my comments in here about the manufacturing decline on one of the articles in the lab. If the lab is going to print such crap as he is writing about that I am not sure it will be much of. ‘lab’.

Come on Gordon what kind of garbage aree you writing these day, you stated thAt the loss of nearly 600,000 jobs in mAnufacturing is not necessarily a bad thing- if people had any doubts that you are idiot, then fear not, they are convinced now. How can a supposed economist in such exposure, make such idiotic statements? Irresponisble, low minded, gutter talk is all i can say to such garbage.

Comment from duncan cameron
Time: October 17, 2010, 3:21 pm

This is great news Armine. As for ideas of what to write about, the Globe should prove an important outlet for your work on family income inequality, and poverty. I doubt they have covered the anti-poverty strategies you have discussed at all. And gendered analysis will be a novel beginning in the paper for sure. Jobs and incomes are still the issues that matter the most to most people, your work will open eyes, count on it.

Write a comment





Related articles