It is argued that eligibility for OAS/GIS discourages older Canadians from remaining in the workforce, and that we need to keep them working to avoid labour shortages and a sharp rise in the so-called dependency ratio. But the fact of the matter is that 65 is not the trigger for retirement that it used to [...]

It was not a happy new year for Canadian job seekers. Statistics Canada reported today that unemployment rose for a fourth consecutive month in January. Overall employment remained flat as Canada’s population and labour force grew at a normal pace, leaving more workers without jobs. The good news in today’s report is that 39,200 more [...]

No. Of course not. Even if the government waves around scary large increases in nominal dollar terms. As has been widely reported, the most recent OAS actuarial report shows that total program expenditures will rise from $38.8 billion in 2011 to $107.9 billion in 2030. However, the dollar figure reflects, not just an increase in [...]

Canada’s job market continued to weaken in January as employment rose by a meagre 2,300 jobs, much less than the growth in the number of workers in the labour force. As a result, the national unemployment rate rose from 7.5% to 7.6%. The unemployment rate has been steadily climbing from 7.1% last September, since which [...]

Now that the government is planning for an $8 billion cut,  the potential job losses could drive job losses to between 99,000 and 108,000 full time positions across Canada.  At this much higher level, the federal government could be single-handedly responsible for pushing national unemployment from its current 7.5% to 8.0%.  About half of those [...]

Canadian Press have put out a story based on a research paper by Richard Shillington which was commissioned by HRSDC from Informetrica, and obtained by the CLC through an Access to Information request. Receiving OAS is required to makes seniors eligible for the GIS top up, which provides one in three seniors with a supplement [...]

Statistics Canada reported today that the economy shrank in November for the first time in six months. This decline was driven by reduced energy production, which partly reflected maintenance shutdowns in the oil patch and unusually mild weather. While those factors may not affect future economic growth, their ability to turn it negative in November [...]

To reprise a now topical earlier blog,  hiking the age of eligibility for OAS will have the biggest impact by far on future seniors who are in low income. Many if not most of this group are unable to work due to disability or ill health. If the age of eligibility for OAS and GIS [...]

The Prime Minister’s speech at Davos was, I would bet, written by Stephen Harper himself. It  bore the stamp of his long standing contempt for the European welfare state. He all but said that the Europeans had brought the crisis on themselves through trying to live beyond their fiscal means:  As I look around the world, as [...]

Two obvious but generally unstated details about the Enbridge Northern Gateway Pipeline are climate change and that oil and gas companies stand to make mega-profits. An honest appraisal of the project would be something like, “yes, putting in the pipeline will facilitate even more greenhouse gas emissions from the Alberta oil sands, but our buddies [...]

Prime Minister  Harper went to Davos yesterday to sing Canada’s praises.  No sooner had he finished reciting a long list of our national achievements, however, then he launched into a list of the sober, realistic, inevitable things that must be done in Canada to ensure “sustainability” in the long term.  Top of the list is [...]

Raising the age of eligibility for Old Age Security/Guaranteed Income Supplement (OAS/GIS) benefits is the worst possible way to deal with the retirement income security crisis facing Canadians. Experts such as former Assistant Chief Statistician Michael Wolfson project that one half of all middle income baby boomers face a severe cut to their living standards [...]

Today’s release by the CLC of a study on corporate Canada’s balance sheets, shows not only a trend in declining real investment but also a rising involvement in financial markets. Non financial corporations are not only hoarding cash they are also using cash flow to buy up positions in financial assets. As a complementary note [...]

The CLC today celebrated Corporate Tax Freedom Day – defined as the day on which corporations have paid their share of all government taxes.  It featured a race of mechanical pigs to a trough full of cash – with the pigs wearing the colours of leading Canadian corporations with large cash reserves. Watch the video. [...]

Today’s IMF economic update further downgrades growth projections, including here in Canada where growth in 2012 is forecast to be just 1.7%, down from the IMF’s September forecast of 1.9%.  That is well below the just released Bank of Canada forecast of 2.0%, and clearly implies rising unemployment. On fiscal policy they say: Countries should [...]

Progressive economists have advocated expansionary fiscal and monetary policies to boost demand and create jobs, given the high rate of unemployment. By contrast, employers and conservative commentators complain of unfilled vacancies and labour shortages, emphasizing policies to increase labour supply and labour mobility. Today’s new Statistics Canada survey of job vacancies sheds fresh light on [...]

Last week, Ontario’s Ministry of Finance released the Ontario Economic Accounts for the third quarter of 2011. As The Globe reported, business investment was less than impressive: . . . investment in machinery and equipment fell slightly by 0.2 per cent between June and September, 2011, prompting Ontario Finance Minister Dwight Duncan to fire a [...]

Quick: what do U.S. Steel, Rio Tinto, and Caterpillar all have in common? They’re all enormous, flexible global companies, given carte blanche by the Canadian government to purchase important long-standing profitable assets here with few if any conditions, who promptly locked out their Canadian workers in an effort to extract historic concessions in compensation and [...]

Saskatchewan’s Brad Wall recently issued a statement exhorting his fellow Premiers to blaze largely unspecified new trails on healthcare, Employment Insurance and Equalization. Unfortunately, he misses the ball on all three issues. Greg Fingas and Verda Petry have already refuted Wall’s call for further healthcare privatization. On Employment Insurance, Wall implies that eastern Canadians are [...]

 Last Thursday I was at an event on the issue of rising income inequality, sponsored by Canada 2020. It featured one of the authors of the recent OECD report on inequality, who highlighted the “skills biased technological change or SBT ” hypothesis so favoured by mainstream economists who desperately avoid discussion of inequality as a [...]