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Breakenridge: Blame for the economy is in the eye of the partisan beholder – Calgary Herald

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Alberta Premier Jason Kenney meets with Deputy Prime Minister Chrystia Freeland in Calgary, Tuesday, Jan. 7, 2020.


THE CANADIAN PRESS/Todd Korol

After yet another month of discouraging jobs numbers for Alberta, it’s certainly fair and understandable to wonder who and/or what is responsible for the province’s stubborn unemployment problem.

Depending on whom you ask, the answer might be Jason Kenney, Rachel Notley, Justin Trudeau, Donald Trump, or simply global economic forces beyond our control. Perhaps the answer might even be some variation of “all of the above.”

There’s typically not one simple explanation — or one identifiable hero or villain — when it comes to such matters, which can be inconvenient for those engaged in partisan bloodsport. Depending on one’s partisan stripes, the governing party is entitled to all of the credit or all of the blame when it comes to economic news. Governments probably get too much credit and too much blame for the state of the economy, as it is. Such is politics, though.

That’s not to suggest that there is no accountability or that policies don’t matter. And for a government that promised not only to create jobs but also to end the “job-killing” policies of its predecessors, it’s reasonable to judge it on this point.

I would argue, though, that for this government — or any government — a period of less than a year is insufficient to conclude whether it has failed to deliver improved economic outcomes. But if indeed Alberta’s unemployment story is a much rosier one in a year or two, that doesn’t automatically mean that the government deserves all the credit, either.

“Where are the jobs, Jason?” the Alberta Federation of Labour demanded to know last week. As you might have guessed, it was not a question it ever asked of Jason’s predecessor. The extent to which a premier is to blame for such things depends largely on your partisan zeal and the holder of that particular office.

But if we accept the premise of the question, shall we expect the AFL to then give kudos to the government if and when we see meaningful progress on the jobless front? Don’t hold your breath.

But partisan zeal cuts both ways. While government defenders might rightly note the complexities of this challenge and the need for patience, there wasn’t such nuance four years ago. By early 2016, the opposition was already blaming the NDP’s “job-killing” policies for the rise in unemployment. And, yes, the Kenney-blamers sounded much like 2020’s Kenney-defenders.

There are also defenders of the current government who would blame the prime minister and his government for Alberta’s continued woes. And while Ottawa is not blameless, would those same people then concede that Trudeau is responsible for Canada’s 40-year lows in unemployment? Probably not.

Moreover, though, Kenney did not put a caveat on his jobs promise. It was not premised on a change in government in Ottawa or favourable changes in various external factors. If you are trying to convince Albertans that a premier can greatly affect the number and quality of jobs available in the province, don’t complain when they hold you to that. Live by the sword, die by the sword, as they say.

While it’s unfair to conclude at this point that the government’s approach has failed, that becomes less unfair the longer it is in power. There’s much on the government’s plate at the moment, but it’s hard to see how job creation isn’t or shouldn’t be priority No. 1.

And there is reason for optimism on this front. Economists largely expect to see improvement this year and next, and we are seeing progress on various major energy infrastructure projects.

While there is logic in the government’s approach of making Alberta a more attractive place for investment, it’s also a long-term effort. Does the government believe we need to stay the course and await the eventual payoff, or does it believe that at some point more urgency and a new or different strategy might be warranted? One needn’t be a partisan to ask those questions.

“Afternoons with Rob Breakenridge” airs weekdays 12:30-3:30pm on 770 CHQR rob.breakenridge@corusent.com  Twitter: @RobBreakenridge

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Economy

Minimum wage to hire higher-paid temporary foreign workers set to increase

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OTTAWA – The federal government is expected to boost the minimum hourly wage that must be paid to temporary foreign workers in the high-wage stream as a way to encourage employers to hire more Canadian staff.

Under the current program’s high-wage labour market impact assessment (LMIA) stream, an employer must pay at least the median income in their province to qualify for a permit. A government official, who The Canadian Press is not naming because they are not authorized to speak publicly about the change, said Employment Minister Randy Boissonnault will announce Tuesday that the threshold will increase to 20 per cent above the provincial median hourly wage.

The change is scheduled to come into force on Nov. 8.

As with previous changes to the Temporary Foreign Worker program, the government’s goal is to encourage employers to hire more Canadian workers. The Liberal government has faced criticism for increasing the number of temporary residents allowed into Canada, which many have linked to housing shortages and a higher cost of living.

The program has also come under fire for allegations of mistreatment of workers.

A LMIA is required for an employer to hire a temporary foreign worker, and is used to demonstrate there aren’t enough Canadian workers to fill the positions they are filling.

In Ontario, the median hourly wage is $28.39 for the high-wage bracket, so once the change takes effect an employer will need to pay at least $34.07 per hour.

The government official estimates this change will affect up to 34,000 workers under the LMIA high-wage stream. Existing work permits will not be affected, but the official said the planned change will affect their renewals.

According to public data from Immigration, Refugees and Citizenship Canada, 183,820 temporary foreign worker permits became effective in 2023. That was up from 98,025 in 2019 — an 88 per cent increase.

The upcoming change is the latest in a series of moves to tighten eligibility rules in order to limit temporary residents, including international students and foreign workers. Those changes include imposing caps on the percentage of low-wage foreign workers in some sectors and ending permits in metropolitan areas with high unemployment rates.

Temporary foreign workers in the agriculture sector are not affected by past rule changes.

This report by The Canadian Press was first published Oct. 21, 2024.

— With files from Nojoud Al Mallees

The Canadian Press. All rights reserved.

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Economy

PBO projects deficit exceeded Liberals’ $40B pledge, economy to rebound in 2025

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OTTAWA – The parliamentary budget officer says the federal government likely failed to keep its deficit below its promised $40 billion cap in the last fiscal year.

However the PBO also projects in its latest economic and fiscal outlook today that weak economic growth this year will begin to rebound in 2025.

The budget watchdog estimates in its report that the federal government posted a $46.8 billion deficit for the 2023-24 fiscal year.

Finance Minister Chrystia Freeland pledged a year ago to keep the deficit capped at $40 billion and in her spring budget said the deficit for 2023-24 stayed in line with that promise.

The final tally of the last year’s deficit will be confirmed when the government publishes its annual public accounts report this fall.

The PBO says economic growth will remain tepid this year but will rebound in 2025 as the Bank of Canada’s interest rate cuts stimulate spending and business investment.

This report by The Canadian Press was first published Oct. 17, 2024.

The Canadian Press. All rights reserved.

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Economy

Statistics Canada says levels of food insecurity rose in 2022

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OTTAWA – Statistics Canada says the level of food insecurity increased in 2022 as inflation hit peak levels.

In a report using data from the Canadian community health survey, the agency says 15.6 per cent of households experienced some level of food insecurity in 2022 after being relatively stable from 2017 to 2021.

The reading was up from 9.6 per cent in 2017 and 11.6 per cent in 2018.

Statistics Canada says the prevalence of household food insecurity was slightly lower and stable during the pandemic years as it fell to 8.5 per cent in the fall of 2020 and 9.1 per cent in 2021.

In addition to an increase in the prevalence of food insecurity in 2022, the agency says there was an increase in the severity as more households reported moderate or severe food insecurity.

It also noted an increase in the number of Canadians living in moderately or severely food insecure households was also seen in the Canadian income survey data collected in the first half of 2023.

This report by The Canadian Press was first published Oct 16, 2024.

The Canadian Press. All rights reserved.

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