Canadian economy added 54000 jobs in July, mostly part time - Canadanewsmedia
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Canadian economy added 54000 jobs in July, mostly part time



The Canadian economy added about 54,000 new jobs last month, causing the jobless rate to fall two-tenths of a percentage point to 5.8 per cent.

Statistics Canada said Friday that the economy added 82,000 part-time jobs, but that figure was offset by a loss of 28,000 full-time positions.

The public sector added 49,600 new jobs, while the private sector added 5,200 positions. 

Ontario accounted for most of the gains, adding 61,000 jobs as a surge of part-time work offset a loss of full-time jobs.

July's data means that in the past 12 months, Canada has added 246,000 jobs, 211,000 of which are of the full-time variety.

Toronto-Dominion Bank economist Brian DePratto said beyond the strong headline number, the details of the report were "mixed."

"Could have been better, could have been worse," he said.

At 5.8 per cent, the country's official unemployment rate is now tied for its lowest level since the 1970s, Bloomberg data shows. The figure has hit the mark several times this year without ever going below it.

"On the plus side, the number of unemployed fell and more Canadians were drawn to the labour force – both signs of a healthy economy," DePratto said.

But there's one demographic group for whom the job market is looking much less robust: students. In the summer months, Statistics Canada collects data on what the job market is like for young people between the ages of 15 and 24 who want to work.

This summer, there are 67,000 fewer young people with summer jobs than there were last year. The jobless rate for young people now sits at 12.8 per cent.

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American CEOs don't see US economic slowdown yet, says head of executive group




Global CEOs are seeing a bit of a slowdown outside the United States, but that’s not what U.S. chief executives are saying about the nation’s economy, according to Steve Odland, president and CEO of The Conference Board.

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The organization, a global, independent business membership and research association, conducts a number of CEO and confidence studies.

“The U.S. numbers look very strong. All of the Conference Board indicators from the consumer confidence index to the leading economic indicators to the expectations index all say that the next six months expect to be very good,” said Odland, a CNBC contributor who once served as CEO of both Office Depot and AutoZone.

He told CNBC’s “Power Lunch” on Friday the group’s forecast for 2018 gross domestic product is about 3.1 percent, while 2019’s is 3.2 percent.

Its leading economic index for September increased 0.5 percent and its consumer confidence index moved up 2.6 points in October. However, its measure of CEO confidence declined in the third quarter, thanks to concerns about rising interest rates.

Odland’s remarks follow CNBC’s Jim Cramer’s comments that CEOs are telling him how quickly things have cooled in the economy.

“So many of them are baffled that we could find ourselves in this late-cycle dilemma that wasn’t supposed to occur so soon,” the “Mad Money” host said on Thursday.

Odland didn’t say that Cramer was wrong. Instead, he pointed out that there are some sectors that may be experiencing a slowdown.

“Ten years into a recovery, you would expect to see some of the leading sectors, some of the leading companies on that cycle to begin to slow down. And you would expect to see different geographic issues,” he said. “It’s a mixed bag.”

Bill George, former Medtronic chairman and a CNBC contributor, agrees. For example, the retail sector has never been better, and health-care execs are bullish, he said. However, for the auto sector it is near the end of the business cycle, he added.

“We are at the end of a very long cycle,” he told “Power Lunch.” “It could continue for several years, but everyone’s concerned about risk.”

He said the biggest risk is global trade, specifically with China.

— CNBC’s Elizabeth Gurdus contributed to this report.

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Canada falling behind in the knowledge economy due to 'outdated thinking': Balsillie




Canadian governments need to radically rethink their approach to the knowledge economy if the country is to be anything more than a branch plant for global technology giants, former BlackBerry Ltd. co-CEO Jim Balsillie told a breakfast gathering in Toronto Friday.

“I think they confuse a cheap jobs strategy … (and) foreign branch plant pennies with innovation billions,” Balsillie said. “I think it’s just outdated thinking, people without the expertise making decisions.”

Balsillie made the comments in conversation with Financial Post columnist Kevin Carmichael as part of the launch of the Post’s Innovation Nation project.

Balsillie has argued that the “intangible” economy of data, software and intellectual property is fundamentally different from the classical industrial economy built on the trade of goods and services, and that because Canadian policymakers fail to understand that difference, they keep being taken for rubes.

On Friday, Balsillie was particularly critical of the federal government’s policy when it comes to “branch plant” investments in Canada in the technology sector.

He said that in the traditional economy of goods and services, foreign direct investment (FDI) is a good thing, because there’s a multiplier effect — $100 million for a new manufacturing plant or an oil upgrader might create $300 million in spinoff economic activity.

But if you’re just hiring programmers to write software, the picture is different, he said. It’s a much smaller number of jobs with fewer economic benefits, and, more importantly, the value created through intellectual property flows out of the country.

“Our FDI approaches have been the same for the intangibles, where, when you bring these companies in, they put a half a dozen people in a lab, they poach the best talent and they poach the IP, and then you lose all the wealth effects,” Balsillie said.

“Don’t get me wrong. I believe in open economies. They’re going to come here anyway; I just don’t know why we give them the best talent, give them our IP, give them tax credits for the research, give them the red carpet for government relations, don’t allow them to pay taxes, and then have all the wealth flow out of the country.”

When Carmichael asked about the recent push for tax cuts in Canada to match those enacted by U.S. President Donald Trump, Balsillie suggested that the bigger story is how the U.S. is entrenching its advantage on digital trade.

“We had lower taxes than the U.S. for 15 years, and our productivity went down, tick, tick, tick, for 15 years,” he said. “Now, what the U.S. has said is that you’ve got a one-time holiday to repatriate all your cash, but from now on all your IP gets taxed in the U.S. so they’re accruing the economic benefits and state power that comes with building those intangible assets.”

I think they confuse a cheap jobs strategy … (and) foreign branch plant pennies with innovation billions

Jim Balsillie

While Balsillie said that for years Ottawa didn’t listen as he sounded the alarm on intellectual property issues, he said he is now getting feedback from politicians that suggests the message is starting to get through.

During Friday’s conversation, Balsillie also stressed that, if small countries such as Canada make a point of prioritizing the intangible economy, there are huge opportunities. He pointed to Israel, Finland and Singapore as examples of how smart policies and specialization can reap big rewards.

“I could literally see enormously powerful positions for Canada if we choose the right places. I mean, there are some obvious ones: value added in the food business, and precision data and IP in agriculture; certainly in energy extraction and mining, which are data and technology businesses,” he said.

“We actually have enormous opportunities to build the resilience and opportunity,” he said. ”And how can you threaten a country with a picture of a Chevy and 25 per cent tariffs when you’ve built these kinds of very powerful innovation infrastructures that you can’t stop with a tariff because they move with the click of a mouse?”

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Indonesia moves to shore up economy




Indonesia announced yesterday a new economic stimulus package to support the rupiah and spur growth in the lead-up to the presidential election in April, which has seen the country’s ailing economy emerging as a critical issue for President Joko Widodo’s administration two months into campaigning.

The stimulus package includes tax cuts from next year for exporters in the mining, plantation, forestry and fishery sectors which keep their export revenues in the domestic banking system.

Finance Minister Sri Mulyani Indrawati, one of several ministers fronting a press conference at the presidential palace yesterday, said that a reduction of income tax will apply to the interest of time deposits both in local and foreign currencies deriving from export revenues.

However, exporters which do not keep their export earnings domestically may be barred from moving their goods overseas.

“Regarding the export revenues, we will impose an administrative sanction by way of banning exports,” Ms Sri Mulyani added.

Experts say it is a move to stem capital outflows, which have seen the embattled rupiah plunge to its lowest levels since the 1998 Asian financial crisis.

Mr Joko had in July met executives from about 40 exporters in Indonesia to also make the case for earnings currently kept offshore to be brought home.

Mr Satria Sambijantoro, an economist at Bahana Securities, said that by keeping export revenues in the country, the foreign exchange reserves can grow, which will help mitigate capital outflows from Indonesia in the future.

“In the end, foreign exchange liquidity in domestic banks will remain ample at times of external shocks,” he told The Straits Times.

To attract foreign investments, the stimulus package will allow for a relaxation of the country’s Negative Investment List for some priority sectors, such as textile printing and weaving, said Industry Minister Airlangga Hartarto.

The list specifies sectors which are either entirely closed or conditionally open to foreign investment, including oil and gas, trading, pharmaceuticals and transportation.

Finance Minister Sri Mulyani Indrawati, one of several ministers fronting a press conference at the presidential palace yesterday, said a reduction of income tax will apply to the interest of time deposits both in local and foreign currencies deriving from export revenues.

With the change, foreign ownership in 54 business sectors, including the steel, chemical and petrochemical industries, can now be 100 per cent, up from the present 30 per cent to 67 per cent.

Coordinating Economic Minister Darmin Nasution said: “We cannot address the current account (deficit) issue only. We must formulate policies to give investors confidence and allow capital inflows.”

The rupiah has been on an upward trend since early this month.

It traded at 14,611 per US dollar on the foreign exchange spot market at yesterday’s closing session versus 14,665 a day earlier, according to data compiled by Bloomberg.

But analysts warn that risks remain, particularly with imports traditionally spiking during the year-end holidays, which might contribute to a higher current account deficit and a weaker rupiah.

Mr Mohammad Faisal, executive director of the Centre of Reform on Economics Indonesia, said that with the US intensifying efforts to boost its economy, including adopting a hawkish monetary stance, capital has been sucked out of emerging economies like Indonesia.

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