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Trevor Hancock: Building a stronger, One Planet regional economy – Times Colonist

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Last week, I stressed the importance of a stronger regional economy as a means of increasing local self-reliance, given that we live on an Island and that the Covid-19 pandemic has revealed the vulnerability that comes from being very reliant on others — be they food or energy producers or tourists.

Add to that the growing recognition that we live on one small planet and have to trim our expectations to live within its limits. But as the Centre for Local Prosperity noted in its 2018 report on import replacement: “A community’s willingness to be restrained in what it wants and resourceful in providing what it needs, opens up enormous long-term community benefits.”

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The good news is that several important local initiatives are already underway, such as Think Local First, a non-profit society founded in 2013 and directed by small business owners in Greater Victoria. They promote the “10 per cent shift movement” because “for every 10 per cent of dollars spent at locally owned shops and services, 25 per cent more money stays in the Victoria economy.”

Their website cites a CUPE study that found “if all of BC made the 10 per cent shift, we would actually create 31,000 more jobs and infuse $940 million in wages into the province’s economy.”

They point to a number of other benefits of spending locally, including helping to create more vibrant, compact and walkable town centres, which help to reduce traffic and pollution. And, they add, locally owned businesses “invest more in local labour, pay more local taxes, spend more time on community-based decisions, and participate in local events.”

A second example is social procurement, which is a fairly straightforward concept. Buy Social Canada describes it as “a tool for building healthy communities,” by using the purchasing power of municipalities to enhance not only the economic and physical capital of the community, but its human, social, cultural and natural capital.

Based on the 2017 report of the Mayor’s Task Force on Social Enterprise and Social Procurement, the City of Victoria has adopted a three-pronged strategy of social procurement, social enterprise development and social entrepreneurship. The main suggested focus for social procurement is on “efforts to ladder the unemployed, underemployed and marginalized into employment.” The city is also the only municipality in the Capital Regional District that is a member of the Coastal Community Social Procurement project, which Mayor Lisa Helps co-chairs.

Finally, there is the South Island Prosperity Partnership (SIPP), which brings together business, municipal and First Nations leaders to “bolster our region’s economic and social prosperity … by catalyzing the creation of high-quality, household-sustaining jobs, so that more families can afford to live, work and build a life here.” It recently initiated a Civic Solutions Hub that would “introduce new approaches to Municipal procurement that [would] spark innovation in the local economy.”

Responding to the economic impact of Covid-19, SIPP recently launched a Rising Economy Taskforce, not only to work on economic recovery but to “advance plans to create greater economic resiliency in the region to withstand future global shocks.” The broad-based Taskforce, which includes representatives from post-secondary institutions and nonprofits, will “explore business transitions and new emerging opportunities.”

One of the immediate fruits of their work is a study of the feasibility of a local abattoir because, noted SIPP: “The vast majority of meat is imported to the Island, and most locally raised livestock are transported out of the region to be processed.” The benefits of a local abattoir, SIPP noted, would be to “reduce environmental impacts due to transport … help create jobs and stimulate the economy.”

Perhaps this idea should be expanded to the fishing industry, where we find a similar situation. Jim McIsaac, executive director of the T. Buck Suzuki Foundation, likes to make this astonishing point; in Canada we import 93 per cent of the seafood we eat, while 85 to 90 per cent of what we harvest is exported. Surely the same argument can be applied to this situation as to the meat industry; process and consume it locally.

In any case, it is good to see these efforts underway, they need to be expanded and strengthened if we are to create a more resilient local economy that works for us locally.

thancock@uvic.ca

Dr. Trevor Hancock is a retired professor and senior scholar at the University of Victoria’s School of Public Health and Social Policy.

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Economy

Canada’s unemployment rate holds steady at 6.5% in October, economy adds 15,000 jobs

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OTTAWA – Canada’s unemployment rate held steady at 6.5 per cent last month as hiring remained weak across the economy.

Statistics Canada’s labour force survey on Friday said employment rose by a modest 15,000 jobs in October.

Business, building and support services saw the largest gain in employment.

Meanwhile, finance, insurance, real estate, rental and leasing experienced the largest decline.

Many economists see weakness in the job market continuing in the short term, before the Bank of Canada’s interest rate cuts spark a rebound in economic growth next year.

Despite ongoing softness in the labour market, however, strong wage growth has raged on in Canada. Average hourly wages in October grew 4.9 per cent from a year ago, reaching $35.76.

Friday’s report also shed some light on the financial health of households.

According to the agency, 28.8 per cent of Canadians aged 15 or older were living in a household that had difficulty meeting financial needs – like food and housing – in the previous four weeks.

That was down from 33.1 per cent in October 2023 and 35.5 per cent in October 2022, but still above the 20.4 per cent figure recorded in October 2020.

People living in a rented home were more likely to report difficulty meeting financial needs, with nearly four in 10 reporting that was the case.

That compares with just under a quarter of those living in an owned home by a household member.

Immigrants were also more likely to report facing financial strain last month, with about four out of 10 immigrants who landed in the last year doing so.

That compares with about three in 10 more established immigrants and one in four of people born in Canada.

This report by The Canadian Press was first published Nov. 8, 2024.

The Canadian Press. All rights reserved.

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Economy

Health-care spending expected to outpace economy and reach $372 billion in 2024: CIHI

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The Canadian Institute for Health Information says health-care spending in Canada is projected to reach a new high in 2024.

The annual report released Thursday says total health spending is expected to hit $372 billion, or $9,054 per Canadian.

CIHI’s national analysis predicts expenditures will rise by 5.7 per cent in 2024, compared to 4.5 per cent in 2023 and 1.7 per cent in 2022.

This year’s health spending is estimated to represent 12.4 per cent of Canada’s gross domestic product. Excluding two years of the pandemic, it would be the highest ratio in the country’s history.

While it’s not unusual for health expenditures to outpace economic growth, the report says this could be the case for the next several years due to Canada’s growing population and its aging demographic.

Canada’s per capita spending on health care in 2022 was among the highest in the world, but still less than countries such as the United States and Sweden.

The report notes that the Canadian dental and pharmacare plans could push health-care spending even further as more people who previously couldn’t afford these services start using them.

This report by The Canadian Press was first published Nov. 7, 2024.

Canadian Press health coverage receives support through a partnership with the Canadian Medical Association. CP is solely responsible for this content.

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Trump’s victory sparks concerns over ripple effect on Canadian economy

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As Canadians wake up to news that Donald Trump will return to the White House, the president-elect’s protectionist stance is casting a spotlight on what effect his second term will have on Canada-U.S. economic ties.

Some Canadian business leaders have expressed worry over Trump’s promise to introduce a universal 10 per cent tariff on all American imports.

A Canadian Chamber of Commerce report released last month suggested those tariffs would shrink the Canadian economy, resulting in around $30 billion per year in economic costs.

More than 77 per cent of Canadian exports go to the U.S.

Canada’s manufacturing sector faces the biggest risk should Trump push forward on imposing broad tariffs, said Canadian Manufacturers and Exporters president and CEO Dennis Darby. He said the sector is the “most trade-exposed” within Canada.

“It’s in the U.S.’s best interest, it’s in our best interest, but most importantly for consumers across North America, that we’re able to trade goods, materials, ingredients, as we have under the trade agreements,” Darby said in an interview.

“It’s a more complex or complicated outcome than it would have been with the Democrats, but we’ve had to deal with this before and we’re going to do our best to deal with it again.”

American economists have also warned Trump’s plan could cause inflation and possibly a recession, which could have ripple effects in Canada.

It’s consumers who will ultimately feel the burden of any inflationary effect caused by broad tariffs, said Darby.

“A tariff tends to raise costs, and it ultimately raises prices, so that’s something that we have to be prepared for,” he said.

“It could tilt production mandates. A tariff makes goods more expensive, but on the same token, it also will make inputs for the U.S. more expensive.”

A report last month by TD economist Marc Ercolao said research shows a full-scale implementation of Trump’s tariff plan could lead to a near-five per cent reduction in Canadian export volumes to the U.S. by early-2027, relative to current baseline forecasts.

Retaliation by Canada would also increase costs for domestic producers, and push import volumes lower in the process.

“Slowing import activity mitigates some of the negative net trade impact on total GDP enough to avoid a technical recession, but still produces a period of extended stagnation through 2025 and 2026,” Ercolao said.

Since the Canada-United States-Mexico Agreement came into effect in 2020, trade between Canada and the U.S. has surged by 46 per cent, according to the Toronto Region Board of Trade.

With that deal is up for review in 2026, Canadian Chamber of Commerce president and CEO Candace Laing said the Canadian government “must collaborate effectively with the Trump administration to preserve and strengthen our bilateral economic partnership.”

“With an impressive $3.6 billion in daily trade, Canada and the United States are each other’s closest international partners. The secure and efficient flow of goods and people across our border … remains essential for the economies of both countries,” she said in a statement.

“By resisting tariffs and trade barriers that will only raise prices and hurt consumers in both countries, Canada and the United States can strengthen resilient cross-border supply chains that enhance our shared economic security.”

This report by The Canadian Press was first published Nov. 6, 2024.

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