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Alberta cuts business tax, boosts infrastructure spending to reboot economy

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EDMONTON — Alberta is cutting business taxes and pumping $10 billion into infrastructure projects to springboard its economy out of the financial crisis caused by the COVID-19 pandemic.

Premier Jason Kenney says the investments will be for roads, health care, schools and in other areas, with expected spinoff benefits to other businesses and the service sector.

Kenney says there will also be incentives for high-tech companies and other sector-specific initiatives.

Kenney cut the corporate income tax rate to 10 per cent from 12 per cent after taking office last year, and that figure was to go down to eight per cent in the coming years but it will now be done immediately.

He says extraordinary measures are needed to ensure Alberta rebounds from the double whammy of the pandemic and a global oil price war that has sent unemployment soaring.

Finance Minister Travis Toews will deliver a detailed economic update in August, but Kenney has already said emergency spending to date on COVID-19 has sent this year’s budget deficit from about $7 billion to $20 billion.

This report by The Canadian Press was first published June 29, 2020

Source: – Kamloops This Week

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Is the reboot of our economy on an upward trajectory or is it game over (user wins)? – CBC.ca

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As coronavirus restrictions continue to ease up, some parts of the Canadian economy are seeing positive numbers.

But experts say businesses and workers alike are not out of the woods yet, and it remains to be seen what the consequences are to our economy — and how long they could last.

  • The Cost of Living is sticking around all summer on CBC Radio One!
    Catch us Fridays at 11:30 a.m. or if you prefer weekends,
    starting July 4, 2020 we encore Saturdays at 11 a.m. after the news.
    To listen anytime, click here to download the show to your podcast player of choice.

Paul Haavardsrud speaks with Karl Schamotta, Chief Market Strategist at Cambridge Global Payments for his expert take and also hears from businesspeople on the ground.


Click “listen” at the top of the page to hear this segment, or download the Cost of Living podcast.

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July jobs report: Economy added back 1.763 million payrolls in July, unemployment rate fell to 10.2% – Yahoo Canada Finance

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<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="The US economy regained fewer jobs in July after a record gain in June, as a resurgence of coronavirus cases in some states earlier this summer weighed on the labor market recovery. However, the number of jobs added topped estimates, and the unemployment rate fell more than expected.” data-reactid=”16″>The US economy regained fewer jobs in July after a record gain in June, as a resurgence of coronavirus cases in some states earlier this summer weighed on the labor market recovery. However, the number of jobs added topped estimates, and the unemployment rate fell more than expected.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="The Department of Labor’s July jobs report was released at 8:30 a.m. ET Friday. Here were the main metrics in the report, compared to consensus estimates compiled by Bloomberg:” data-reactid=”17″>The Department of Labor’s July jobs report was released at 8:30 a.m. ET Friday. Here were the main metrics in the report, compared to consensus estimates compiled by Bloomberg:

  • Change in non-farm payrolls: +1.783 million vs. +1.48 million expected and +4.791 million in June

  • Unemployment rate: 10.2% vs. 10.6% expected and 11.1% in June

  • Average hourly earnings, month over month: +0.2% vs. -0.5% expected and -1.3% in June

  • Average hourly earnings, year over year: +4.8% vs. +4.2% expected and +4.9% in June

The change in total non-farm payrolls for June was revised down slightly by 9,000 to 4.791 million, while May’s payrolls were revised up by 26,000 to 2.725 million.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Contracts on the three major US stock indices pared overnight losses after the better-than-expected July print was released.” data-reactid=”24″>Contracts on the three major US stock indices pared overnight losses after the better-than-expected July print was released.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="July marked the third straight month that the economy added jobs on net. However, even with the past several months of gains, the economy has not made up the entirety of the lost jobs since the start of the pandemic – especially after April’s record drop of more than 20 million payrolls.” data-reactid=”25″>July marked the third straight month that the economy added jobs on net. However, even with the past several months of gains, the economy has not made up the entirety of the lost jobs since the start of the pandemic – especially after April’s record drop of more than 20 million payrolls.

In July, the number of unemployed individuals on temporary layoffs fell by 1.3 million to 9.2 million. That was half of April’s level, as Americans began returning to work following temporary virus-related business closures. However, the number of permanent job losers held steady in July over the prior month at 2.9 million, underscoring the longer-lasting impact to the labor market due to the pandemic.

The services sector again led non-farm payroll gains in July, after the services economy was cut deeply by shelter in place orders and business closures earlier on this year. The leisure and hospitality industry added back 592,000 jobs after gaining nearly 2 million in June, and retail trade jobs increased by 258,000 in July after a rise of more than 800,000 during the prior month.

Within services, information-related industries were the only group to shed jobs on net in July, losing 15,000. Within the goods-producing sector, mining and logging jobs fell by 7,000.

Government jobs rose by 301,000 in July, after an increase of 54,000 in June.

Elsewhere, the jobless rate improved by a greater than expected margin to 10.2% in July from 11.1% in June. However, the unemployment rate remained above the the Global Financial Crisis peak of 10.0%, and more than double the 3.5% rate from February before the spread of the pandemic in the U.S.

Average hourly wages unexpectedly rose on a month over month basis by 0.2%, following a revised 1.3% decline in June. Consensus economists had expected to see average hourly earnings moderate and decline 0.5% on a monthly basis, due to compositional effects as low-wage workers reentered the workforce following shutdowns.

The US economy added back 1.763 million non-farm payrolls in June and the unemployment rate edged lower to 10.2%. (David Foster/Yahoo Finance)
The US economy added back 1.763 million non-farm payrolls in June and the unemployment rate edged lower to 10.2%. (David Foster/Yahoo Finance)

As had been the case since the start of the pandemic, the dispersion among estimates for July’s change in non-farm payrolls was elevated.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="On the high end, a handful of economists estimated that the economy added back at least 3 million jobs during the month, or double the median estimate. Several, however, expected that non-farm payrolls declined by several hundred thousand. US employers added back more jobs than expected in each of the three latest jobs reports.” data-reactid=”44″>On the high end, a handful of economists estimated that the economy added back at least 3 million jobs during the month, or double the median estimate. Several, however, expected that non-farm payrolls declined by several hundred thousand. US employers added back more jobs than expected in each of the three latest jobs reports.

Still, economists convened on the notion that the pace of recovery in the labor market decelerated since June, due to both the sunsetting of enhanced federal unemployment benefits and the reimposition of stay-in-place measures in some states.

“The 1.763 million increase in non-farm payrolls in July confirms that the resurgence in new virus cases caused the economic recovery to slow, but also underlines that it has not yet gone into reverse,” said Andrew Hunter, senior economist for Capital Economics. “With new infections now trending clearly lower again and high-frequency activity indicators showing tentative signs of a renewed upturn, employment should continue to rebound over the coming months.”

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Ahead of the July jobs report, other recent data also reflected a braking recovery in the labor market. The reference week for the Labor Department’s jobs report captured the period including the 12th of the month, and in mid-July, weekly unemployment insurance claims worsened for two consecutive weeks after months of improvement.” data-reactid=”51″>Ahead of the July jobs report, other recent data also reflected a braking recovery in the labor market. The reference week for the Labor Department’s jobs report captured the period including the 12th of the month, and in mid-July, weekly unemployment insurance claims worsened for two consecutive weeks after months of improvement.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Plus, the closely watched ADP National Employment Report released Wednesday showed private payrolls rose by a meager 167,000 in July. Consensus economists had expected private employers added back 1.2 million payrolls, after an upwardly revised 4.3 million additions in June.” data-reactid=”52″>Plus, the closely watched ADP National Employment Report released Wednesday showed private payrolls rose by a meager 167,000 in July. Consensus economists had expected private employers added back 1.2 million payrolls, after an upwardly revised 4.3 million additions in June.

The ADP report, however, has historically been an imprecise indicator of the “official” government-issued employment report. ADP’s initial print for May, June and now July payroll additions each ultimately undershot the data reflected in the Labor Department’s monthly reports.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="This post is breaking. Check back for updates.” data-reactid=”54″>This post is breaking. Check back for updates.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Emily McCormick is a reporter for Yahoo Finance.&nbsp;Follow her on Twitter: @emily_mcck” data-reactid=”56″>Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter: @emily_mcck

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Read more from Emily:” data-reactid=”57″>Read more from Emily:

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Find live stock market quotes and the latest business and finance news” data-reactid=”63″>Find live stock market quotes and the latest business and finance news

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="For tutorials and information on investing and trading stocks, check out&nbsp;Cashay” data-reactid=”64″>For tutorials and information on investing and trading stocks, check out Cashay

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Follow Yahoo Finance on&nbsp;Twitter,&nbsp;Facebook,&nbsp;Instagram,&nbsp;Flipboard,&nbsp;LinkedIn, and&nbsp;reddit.” data-reactid=”65″>Follow Yahoo Finance on TwitterFacebookInstagramFlipboardLinkedIn, and reddit.

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Economy rebounding – Quinte News

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The employment situation improved in Canada last month as more sectors of the economy began to recover from the COVID-19 pandemic.

Statistics Canada says the national labour market gained 419,000 jobs last month and the July unemployment rate was 10.9%, down from 12.3% in June.

Meanwhile, the local unemployment rate in the Kingston-Pembroke economic region, which the Quinte region is part of, was unchanged at 10% in July. In July of last year our region’s unemployment rate was just 5.1%.

Ontario’s unemployment rate dropped to 11.3% from 12.2% in June.

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