Bank of Canada governor Tiff Macklem is sounding the alarm on Canada’s productivity problem and urging policymakers to dig into why the country struggles with low business investment.
According to prepared remarks he delivered to the Winnipeg Chamber of Commerce Monday, Macklem hailed the strengths of Canada’s job market, including high labour force participation, strong immigration and a solid education system.
The governor also reflected on the fact that the labour market has adjusted relatively well to higher interest rates, albeit some workers, including newcomers and young people, have been harder hit by rising unemployment.
But looking at the longer-term economic picture, he warned productivity is the country’s weakness, noting that on average, businesses invest much less per worker in Canada than they do in the United States.
“Our Achilles heel is productivity. We have been very good at growing our economy by adding workers. We have been much less successful at increasing output per worker,” he said.
The governor’s comments echoed the central message of a speech senior deputy governor Carolyn Rogers gave in March, where she warned addressing low productivity has become a national emergency.
The issue of productivity is top-of-mind for many economists concerned that low business investment will depress living standards in the country.
Macklem said figuring out how to make Canada a better place to invest is critical to supporting non-inflationary economic growth and higher living standards.
Productivity growth, he said, helps businesses compete in global markets and supports higher wages for workers.
“And with an aging population and limits to how many immigrants we can successfully absorb each year, improving our productivity growth will become more important to sustaining trend growth,” Macklem said.
Discussions needed
In a news conference later on Monday, the governor acknowledged that the solutions to Canada’s productivity problem are not in the central bank’s hands.
“But our message is if you want more non-inflationary growth, we’re going to need a concerted discussion between businesses, governments, and academics, civil society, on how are we going to get productivity growth up in Canada,” he said.
Macklem offered some areas policymakers could tackle, including interprovincial trade barriers and Canada’s slow regulatory approvals.
The governor’s remarks come less than three weeks after the Bank of Canada delivered the first interest rate cut in more than four years.
Encouraged by slowing inflation, the central bank lowered its policy rate by a quarter of a percentage point, bringing it to 4.75 per cent.
Macklem reiterated on Monday that if the economy and inflation evolve broadly in line with the central bank’s expectations, it’s “reasonable” to expect more rate cuts.
Canada’s inflation rate was 2.7 per cent in April. Inflation data for May is set to be released Tuesday by Statistics Canada.
High interest rates have slowed down the economy and cooled the job market, as well.
The unemployment rate has steadily increased over the last year, reaching 6.2 per cent in May.
MONTREAL – One expert says entry-level pay under the tentative deal between Air Canada and its pilots could be a stumbling block ahead of a union vote on the agreement.
Under their current contract, pilots earn far less in their first four years at the company before enjoying a big wage increase starting in year five.
The Air Line Pilots Association had been pushing to scrap the so-called “fixed rate” provision entirely.
But according to a copy of the contract summary obtained by The Canadian Press, the proposed deal announced Sunday would merely cut the four-year period of lower pay to two years.
John Gradek, who teaches aviation management at McGill University, says as many as 2,000 of Air Canada’s roughly 5,200 active pilots may earn entry-level wages following a recent hiring surge.
After the airline averted a strike this week, Gradek says the failure to ditch the pay grade restrictions could prompt pushback from rank-and-file flight crew and jeopardize the deal, which is up for a vote next month.
This report by The Canadian Press was first published Sept. 18, 2024.
ROME (AP) — Salvatore “Totò” Schillaci, the Italy striker who was top scorer at its home World Cup in 1990, has died. He was 59.
Schillaci had been hospitalized in Palermo following treatment for colon cancer.
The Palermo Civico hospital said in a statement that Schillacci died on Wednesday morning after being admitted 11 days ago.
Schillaci scored six goals for Italy during the 1990 World Cup. He came on as a substitute during Italy’s opener against Austria, scored in a 1-0 victory, and went on to earn the Golden Boot awarded to the tournament’s top scorer. He only scored one other goal for Italy in his career.
Italian soccer federation president Gabriele Gravina announced that a minute of silence would be held in memory of Schillaci before all games in the country for the rest of the week.
“The uncontrollable celebrations, in which his face was the symbol of shared joy, will remain forever part of Italian soccer (history),” Gravina said. “Totò was a great player, a symbol of tenacious desire and redemption. … His soccer was full of passion. And that fearless spirit made everyone appreciate him and will make him immortal.”
Schillaci also won the Golden Ball award at the 1990 World Cup as the tournament’s top player ahead of Lothar Matthaus and Diego Maradona.
Schillaci played for Messina, Juventus, Inter Milan and Japanese team Jubilo Iwata during his club career.
“You made an entire nation dream during the Magical Nights of Italia ’90,” Inter said on its social media channels.
West Germany won the 1990 World Cup, beating Argentina in the final, while Italy beat England for third place with a winning penalty kick from Schillaci.
Roberto Baggio, who scored Italy’s opening goal in the third-place match, wrote on Instagram, “Ciao my dear friend.”
Having been born and raised in Palermo, the Palermo soccer team announced that it would hold a public viewing of Schillaci at its Renzo Barbera stadium ahead of the funeral, the Gazzetta dello Sport reported.
French soccer player Wissam Ben Yedder will stay free ahead of his trial on charges of sexual assault while intoxicated, one of his lawyers told The Associated Press on Wednesday.
Marie Roumiantseva said Ben Yedder will remain under strict judicial supervision after a woman filed a lawsuit for sexual assault earlier this month.
The 34-year-old Ben Yedder, a prolific striker in the French league, was briefly detained then released after the alleged incident in his car on the French Riviera. Ben Yedder had been stopped by police after he first refused to do so. He was then put in a jail cell.
After he was summoned to appear in court on Oct. 15 and placed under judicial supervision, the Nice prosecutor’s office appealed the decision not to remand the player in custody. The investigative chamber of the Court of Appeal of Aix-en-Provence did not grant this request and kept Ben Yedder under judicial supervision.
Ben Yedder attended a hearing Tuesday during which he offered to go to rehab. He has admitted he drove while under the influence of alcohol but has denied any sexual assault.
In a separate legal case last year, Ben Yedder was charged with “rape, attempted rape and sexual assault” over another alleged incident in the south of France.
Ben Yedder has been without a club since his contract with Monaco expired at the end of last season.
