Jobs: Ontario Left Behind

Statistics Canada reported today that April was another good month for the labour market. The Canadian economy added 58,200 jobs, most of which were full-time and all of which were paid positions rather than reported self-employment. Paradoxically, official unemployment increased as more Canadians entered the labour market. This development provides…
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McGuinty Budget Would Cut Over 100,000 Jobs

Last week, the Ontario Public Service Employees Union released an interesting report by the Centre for Spatial Economics on the economic impact of proposed provincial budget cuts. It provides a timely reminder that the public sector is a crucial component of the economy, with public spending also supporting many private-sector…
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Neil Reynolds’ Fuzzy Tax Math

If you need help with your tax return, don’t ask Neil Reynolds. His latest attack on the New Democrat proposal to collect modestly more tax from Ontario’s super-rich stated that “the province’s highest marginal rate on personal income would rise, federal and provincial rates combined, from 46.4 per cent to…
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Deflating the Monetary Hawks

Canada’s business press has recently been filled with speculation that the Bank of Canada may soon hike interest rates based on its somewhat more optimistic economic outlook. But today’s Consumer Price Index report indicates that there is no need to raise interest rates. Statistics Canada reported that both headline and…
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Ontario to Mine for More Revenue

Last week’s provincial budget promised a mining sector review “to ensure Ontario receives fair compensation for its non-renewable resources,” a proposal advanced by this blog and the United Steelworkers before appearing as a Drummond recommendation. The relevant budget section begins with the following observation: “Ontario has the highest value of…
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Lockouts Almost Derail GDP Growth

Statistics Canada reported today that economic growth dropped to a bare 0.1% in January. The New Year began with Rio Tinto locking out former Alcan employees at Alma, Quebec, and Caterpillar locking out former Electro Motive employees at London, Ontario. Closing these major facilities contributed to cutting growth in durable-goods…
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Ontario Budget Emulates Drummond

Perhaps the most striking feature of today’s Ontario budget is how close it comes to last month’s Drummond report. Drummond’s preferred scenario for 2017-18 was $134.7 billion of provincial revenue, $117.5 billion of program spending and $15.3 billion of interest payments. By comparison, today’s budget envisions $135.9 billion of revenue,…
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Inflation Central

Statistics Canada reported today that consumer prices edged up by 0.1% in February on a seasonally-adjusted basis, bringing the annual inflation rate to 2.6% and the core inflation rate to 2.3%. These rates are within the Bank of Canada’s target range and should allow it to keep interest rates low,…
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Below 40% of the Unemployed Get EI

Statistics Canada reported today that 12,400 more Canadians received Employment Insurance (EI) regular benefits in January. The increase in recipients reflected higher unemployment. Indeed, the proportion of jobless workers receiving benefits remained 39% (i.e. 561,060 beneficiaries out of 1,421,200 officially unemployed Canadians.) Only 28% of unemployed Ontarians received EI benefits…
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