Low-Wage Recovery?

The August employment numbers seem modestly positive, but only in comparison to July’s ruinous numbers. Canada’s labour market weakened severely during the summer of 2008. The Employment Numbers in Context The creation of 41,000 private-sector jobs in August replaces fewer than half of the 95,000 private-sector jobs lost in July. The loss of 24,000 public-sector jobs in August wipes out […]

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The Workers’ Olympics?

On the eve of the Beijing Olympics, recognition should certainly go to the scores of workers who toiled to build the stunning spors palaces and who have made China into the economic powerhouse it is today.  Instead, many have received layoff notices and warnings to leave the Chinese capital, as the New York Times reported today.  A remarkable 4 million […]

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CUPE Economic Climate for Bargaining June 2008

CUPE has published the June 2008 issue of the Economic Climate for Bargaining publication that I put together on a quarterly basis.  Previous issues are also available through this link at our website.   In addition to regular items on national and provincial economic forecasts and analysis of recent employment, inflation and wage developments, this latest issue includes: A very brief primer on […]

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Why Is Low Paid Work so Rare in Denmark?

As highlighted in the most recent version of the OECD Jobs Study, Denmark has recently managed to combine a very egalitarian distribution of wages and incomes with excellent employment and economic performance. The Danish “flexicurity” model gives the great majority of workers decent wages and working conditions, achieved though very high levels of unionization, very high unemployment benefits as a […]

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Workers Stand Still for A Decade

Yet another StatsCan study to confirm ever-increasing inequality over a period of falling unemployment  – this time measured in terms of changes in real hourly wages over the past decade, 1997-2007, based on Labour Force Survey data. Earnings in the Last Decade by Rene Morissette. http://www.statcan.ca/english/freepub/75-001-XIE/2008102/pdf/10521-en.pdf  Among the highlights: Real Average hourly earnings (AHE) of private sector employees rose by […]

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Race and Earnings

Economists tend to be remarkably circumspect about racial discrimination in employment, and Statistics Canada is similarly loath to attribute differences in employment and earnings to racial status in other than the most nuanced way. Yet the evidence increasingly shows that racial discrimination is a matter of empirical fact in Canada, and not just a matter of perception on the part […]

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Higher Education and the Gender Earnings Gap

A recent StatsCan research paper by Marc Frenette and Simon Coulombe “Has Higher Education Among Young Women Substantially Reduced the Gender Gap in Employment and Earnings?” (Analytical Research Paper Series. June, 2007) contains some rather startling data. http://www.statcan.ca/english/research/11F0019MIE/11F0019MIE2007301.htm The paper looks at employment and earnings for young men and women aged 25 to 29, in each of 1981, 1991, and […]

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A Closer Look at Wage Growth

StatsCan reported last Friday that, based on data from the Labour Force Survey, hourly wages were up by 4.2% September, 2006 to September, 2007, the biggest monthly increase since the Survey began collecting wage data in 2007. With inflation running at 1.7%, it’s no wonder that news of a real wage increase of 2.5% in the context of a national […]

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Today’s Labour Force Survey: The High Dollar Hits Good Jobs

My take on Statistics Canada’s release follows: The Dollar Hits Parity During the reference period for this Labour Force Survey, September 15 through 22, the Canadian dollar reached parity with the American dollar. Today’s release does not capture the consequences that have begun to play out since then. A rapidly-rising exchange rate has increased the price of Canadian-made products in […]

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Economic and Social Impacts of Wage Floors

Leading Canadian economist Richard Lipsey (with co author Swedenboorg) has written quite an interesting paper for the NBER, “Explaining Product Price Differences Across Countries.” http://www.nber.org/papers/w13239 The abstract reads as follows: “A substantial part of international differences in prices of individual products, both goods and services, can be explained by differences in per capita income, wage compression, or low wage dispersion […]

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Fighting Poverty Through Municipal Wage Ordinances

Progressive municipal governments in Canada should consider developing and implementing wage ordinances to boost campaigns for higher statutory minimum wages, and to help the working poor. More than 130 municipal living wage ordinances have been passed in the US since 1994, including in many big cities such as New York, Chicago, Boston, Detroit, Cleveland, Los Angeles, San Francisco, Oakland, San […]

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