Article content
Falling retail spending will lead to significant challenges for B.C.’s economy over the next year, says a TD Bank economic forecast released on Monday.
Economy
B.C. economy in for a rough ride, says TD Bank economic forecast – Vancouver Sun
Province expected to take a turn for the worse compared to most other provinces in the coming year
Advertisement 2
Article content
“In recent months, cracks have been seen in both consumer spending and labour markets,” the report read. “B.C.’s economy is expected to take a turn for the worse compared to most other provinces in the coming year.”
Article content
“Nominal retail spending in the first quarter slipped over five per cent annualized, with an even deeper contraction posted in inflation-adjusted terms. With B.C.’s households facing the highest average debt burdens in the country, the financial squeeze from the Bank of Canada’s steady tightening campaign is becoming increasingly evident.”
The report said B.C. businesses have responded to the reduced retail spending by reducing hiring.
“Job growth in the January-May period slowed to a more pedestrian 1.5 per cent, below the national pace. In the coming quarters, we’re expecting a further flattening in employment gains to collide with continued relatively brisk labour force growth, pulling up the province’s unemployment rate to 5.5 per cent by late 2023. In that environment, the pace of average wage gains are likely to slow.”
Advertisement 3
Article content
The drop in wage gains will play a role in controlling the province’s inflation rate.
The bank also noted a 10 per cent jump in average house prices in B.C. over the past year, though it expects that to taper off in the last half of 2023 and into 2024. The bank also forecast the Bank of Canada to raise rates again in July.
Construction activity is also expected to contract by six per cent, despite a burst of activity related to the development of the Kitimat LNG project.
The report noted the B.C. government is set to increase spending by eight per cent, the highest among all provinces.
“Housing affordability measures carry a $1.1 billion tab. The government will also make permanent increases to the climate action tax credit and enhancements to the B.C. family credit,” the report read.
-
Five things to know about B.C.’s economic future
-
B.C. energy industry leaders confident province can meet federal greenhouse gas targets
-
Federal government hammered from all sides during forum on B.C. economy
Support our journalism: Our in-depth journalism is possible thanks to the support of our subscribers. For just $3.50 per week, you can get unlimited, ad-lite access to The Vancouver Sun, The Province, National Post and 13 other Canadian news sites. Support us by subscribing today: The Vancouver Sun | The Province.
Article content
Continue Reading
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.
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.
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.
News3 hours ago
World on pace for significantly more warming without immediate climate action, report warns
News3 hours ago
Hamilton Tiger-Cats sign Canadian kicker Liegghio to extension
News3 hours ago
Rogers Communications reports $526M third-quarter profit, up from loss a year ago
Investment5 years ago
dynaCERT Inc. Invites You to Join Us at the Vancouver Resource Investment Conference | INN – Investing News Network
Sports5 years ago
AP source: Bears acquiring quarterback Nick Foles from Jaguars – Sportsnet.ca
Media1 year ago
12 Bizarre Things People Did Just To Make Social Media Content
-
News21 hours agoAbdelrazik tells of despair when Ottawa denied him passport to return home from Sudan
-
News20 hours agoQuick Quotes: What Liberal MPs have to say as the caucus debates Trudeau’s future
-
Business3 hours agoHiring Is a Process of Elimination
-
News14 hours agoAlberta, Ottawa discuss funding for homelessness, more talks expected in coming days
-
News14 hours agoCourt of Appeal upholds Quebec ruling that invalidated random police stops
-
News14 hours agoSearch of Manitoba landfill for remains of slain First Nations women on track: Kinew
-
News14 hours agoResearch from Alaska finds more polar bears are exposed to pathogens
-
News21 hours agoWith Liberal election win, First Nations in N.B. look forward to improved relations
Comments
Postmedia is committed to maintaining a lively but civil forum for discussion and encourage all readers to share their views on our articles. Comments may take up to an hour for moderation before appearing on the site. We ask you to keep your comments relevant and respectful. We have enabled email notifications—you will now receive an email if you receive a reply to your comment, there is an update to a comment thread you follow or if a user you follow comments. Visit our Community Guidelines for more information and details on how to adjust your email settings.
Join the Conversation