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Temporary residents a boost to Northern Ontario's economy, study says – The Sudbury Star

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Including those studying in Northern Ontario, they generate at least $500 million annually in economic activity

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Temporary residents fill gaps and contribute in significant ways to the regional economy, a northern think tank has found in a newly published study.

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More than 11,000 temporary residents work and study in Northern Ontario.

“The positive economic impact of just 11,000 temporary residents in Northern Ontario is a huge opportunity for communities,” said Thomas Mercier, project co-ordinator at Réseau du Nord, a partner on the study. “Attracting and retaining individuals such as international students or temporary foreign workers and their families can bring communities one step closer to ensuring long-term growth.”

The long-term growth and viability of communities can be a challenge, considering the workforce in Northern Ontario is aging, which means fewer people are paying income taxes and even fewer still are available to fill vacancies.

The study – entitled Temporary Residents, Permanent Benefits: How temporary residents fill vacancies, pay taxes and keep the local economy rolling – was published this week by the Northern Policy Institute. In it, author Samrul Aahad indicated temporary workers often fill positions that cannot be filled by the local workforce.

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“Work permit holders filled in a variety of in-need occupations such as food service supervisors, cooks, transport truck drives, welders and related machine operators, and retail sales supervisors,” Aahad noted. “In 2019, work permit holders in Northern Ontario were estimated to generate approximately $155 million in total income.”

In 2019, there were 3,320 work permit holders living in Northern Ontario. Most (720) were living in the Greater Sudbury area, followed by Thunder Bay (690) and Kenora (330). More than 300 people were also calling the Nipissing area home.

“India is the leading country of origin among work permit holders in Northern Ontario; approximately two in five (38.8 per cent),” Aahad wrote. “Notably, the second-largest cohort is from the United States (about 22.6 per cent), followed by China.”

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International students had an even more significant impact. In 2019, there were 7,980 international students living in Northern Ontario. Most – 2,315 – lived in Greater Sudbury; while 2,055 students were living in Thunder Bay and 1,975 were based in Algoma (the study used pre-COVID numbers).

As with work permit holders, the vast majority of international students came from India. In fact, more than two of three students – 68.8 per cent – were from India, while 8.9 per cent came from China.

“International students can work off-campus for up to 20 hours a week and apply for a post-graduation work permit,” Aahad wrote. “Their income in 2019 is conservatively estimated to be $279 million, much of which is reinvested into their local Northern Ontario economy via tuition, rent, groceries, and other goods and services.”

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The relatively high tuition rates paid by international students enable post-secondary institutions to remain viable, Aahad indicated. On average, international students pay about three times as much as Canadians and in 2019, they spent nearly $176 million on tuition fees.

“For university undergraduate programs for the 2021-22 academic year, the annual average tuition fee for international students in Northern Ontario was $22,503,” Aahad saidd. “By contrast, Canadian students paid $5,794 on average for the same programs.

“Similarly, international students paid $15,782 on average for graduate programs in Northern Ontario while their Canadian counterparts paid $6,395. The additional mark-up international students pay to post-secondary institutions is invested back into Northern Ontario’s economy in various ways.”

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In total, temporary residents, including those studying in Northern Ontario, generate at least $500 million annually in economic activity, the NPI determined.

“The economic activity generated by their participation in the market exceeds half a billion dollars; however, their benefit to the economy does not stop there,” Aahad argued. “They also fill gaps in the labour market created by an aging population and can help keep businesses running. Finally, they bring social and cultural benefits to the region, such as diverse cuisines, which are hard to measure in dollars.”

The full study is available online at northernpolicy.ca/economic-impact-tr.

mkkeown@postmedia.com

Twitter: @marykkeown

Facebook: @mkkeown

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Canada's creator economy is finally getting support after years of neglect – Financial Post

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The creator economy is growing as more homegrown creators turn content into cash

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After years of neglect, Canada’s creator economy is finally getting some recognition — and some money to go with it.

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The creator economy, made up of individuals and businesses making content on social media platforms and the organizations that support them, is growing as more homegrown creators turn content, such as videos, into cash. Early stage investment funds have taken notice, and are starting to sink money into creators working with platforms that include Alphabet Inc.’s YouTube, Meta Platforms Inc.’s Instagram and ByteDance Ltd.’s TikTok. Meanwhile, resources and organizations designed to foster influencers’ growth are also cropping up, priming the industry for a new era of growth in Canada.

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“Canadian influencer talent, for better or worse, has predominantly been hard to find. I don’t think there’s a lack of talent here. I think it’s the lack of opportunity,” said Matt Roberts, managing partner at ScaleUP Ventures Inc. which led a Series A financing round in 2018 for Toronto-based creator marketing company Hashtag Paid Inc., which stylizes its name as #paid.

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“Up until now, it’s been very ad hoc how all these (stakeholders) work together,” he said.

Creators are contributing no small amount of money to the Canadian economy. The exact figure is hard to pin down, but in 2021, YouTube Canada alone contributed $1.1 billion to the country’s gross domestic product, an Alphabet-commissioned report by Oxford Economics said, and the number of YouTube channels earning $100,000 or more annually rose 35 per cent year over year.

Around the world, there are more than 50 million people who consider themselves creators, according to SignalFire, a venture capital firm in San Francisco. Across all major platforms, there are more than two million professional, full-time creators, while more than 45 million call themselves part-time, amateur creators. Estimates of the size of the global creator economy hover at above US$100 billion.

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So far, the path to homegrown success hasn’t been easy for Canadian creators, especially for those producing content in crowded niches such as comedy. Canada’s creator ecosystem has historically been too small to support influencers’ brands, Roberts said. That has forced many fledgling influencers to pack up their gear and leave the country completely to build their careers. One popular destination is Los Angeles, California, home of Hollywood and a key market for social media stars, where you can’t turn a corner without bumping into a talent agency.

That’s exactly where Inanna Sarkis went when she embarked on her acting and social media career. In 2016, the Woodbridge, Ont., native completed her criminal justice degree, left her condo in downtown Toronto and hopped on a plane to L.A.

It was there she began her meteoric rise on social media, gaining thousands of followers by the day, which helped boost her chances of landing an acting role at auditions. Before video app Vine, owned by Twitter Inc., shut down in 2017, she amassed more than 100,000 followers. Sarkis currently has close to four million subscribers on YouTube and 15.2 million followers on Instagram.

She’s now been in movies and a handful of television series, most notably a horror flick released last year called Seance.

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“L.A. was so advanced and everyone was literally already creating so much content at the time,” Sarkis said of the creator climate in 2016 via video call from her Los Angeles home. “There was already built-in infrastructure because of the acting world.”

It was through acting classes that she met some of the rising stars who went on to dominate Vine, the popular social media app of the time, known for its six-second video format. She first met Melvin Gregg — now an actor in the show Nine Perfect Strangers on Amazon.com Inc.’s Prime streaming service — who then introduced her to the likes of King Bach, DeStorm Power and Anwar Jibawi, all stars in their own right. Together they built a support system to foster each other’s creativity.

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“Everyone who wanted to act or wanted to create, they all moved into one building, which was (known as) Vine Street in Los Angeles. You would go outside and there’d be Viners in every corridor creating content,” she said.

It was a far cry from what she experienced in Canada.

“When I came back to Toronto … (Vine) was just this thing that existed and (people) would watch it but never really create content for it,” Sarkis said.

The Weeknd performing in at BC Place in Vancouver on Aug. 23, 2022.
The Weeknd performing in at BC Place in Vancouver on Aug. 23, 2022. Photo by Darryl Dyck/The Canadian Press files

Another industry-watcher saw opportunity in that dearth of support for Canadian content creators. Ahmed Ismail founded Hxouse, an incubator for creators, in 2018 with his friends Abel Tesfaye, the popular R&B singer known as The Weeknd, and La Mar Taylor, The Weeknd’s creative director.

They envisioned Hxouse as a space in Toronto’s east end for aspiring creative entrepreneurs to learn through mentorship programs, networking opportunities and educational sessions about how to innovate and capitalize on opportunities in the creator economy.

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Through Hxouse, creators gain access to the knowledge the three have gained from their connections to the entertainment industry. “You (get) to learn from the best of our friendships and our relationships,” Ismail said.

In September, Ismail launched CNCPT in partnership with YouTube Canada, an iteration of Hxouse’s initial offerings meant to target budding Canadian creators. YouTube Canada is funding a separate space in Hxouse’s offices for creators, new and seasoned, to shoot content and use tools such as cameras and editing software.

The two companies are still working out the kinks of what CNCPT will become, but YouTube said it will provide $100,000 grants for creative entrepreneurs to accelerate their online businesses. It also plans to fund and help create the curriculum for two annual accelerator programs beginning early next year that will be free for participants.

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Ismail said the collaboration with YouTube is a step in the right direction for the local creator economy.

“This is how we help build Canadian talent pipelines so more creatives and entrepreneurs realize their potential and find success and also stay in Canada while they’re still global phenomenons,” he said.

Ismail and his team are betting the creator economy will take off in Canada. The XO Crew, the name of The Weeknd’s label and associates, joined ScaleUP’s Roberts in the $18.9-million Series A round that #paid raised.

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Other businesses that help manage marketing deals between brands and creators are also popping up. Adrian Capobianco, founder of BILI Inc., launched the Because I Love It platform earlier this year aimed at connecting creators and influencers with businesses seeking to make advertising deals. In June, the company raised $600,000 in its first seed round and is currently trying to raise money for a second financing round.

“The creator economy is not just an economy in the dollars and cents aspect. It really is a very robust ecosystem for creators, for influencers and for brands,” Capobianco said. “Interest from brands is growing rapidly and interest from creators continues to scale.”

• Email: bbharti@postmedia.com | Twitter:

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Economy

Powell says economy may be entering 'new normal' after pandemic – BNN Bloomberg

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(Bloomberg) — Federal Reserve Chair Jerome Powell said the US economy may be entering a “new normal” following disruptions from the Covid-19 pandemic.

“We continue to deal with an exceptionally unusual set of disruptions,” Powell told business and community leaders Friday at a Fed Listens event in Washington. “As policy makers we’re committed to using our tools to help see the economy through what has been a uniquely challenging period.”

In his brief welcoming marks, Powell didn’t discuss the outlook for interest rates or offer more specifics on the economic outlook. All seven of the Board’s governors were present for the panel with Philip Jefferson and Lisa Cook making public comments in their roles as Fed officials for the first time.

Fed officials heard a consistent message that shortages and scarcity were still afflicting businesses along with high labor turnover. Speaking about the small- and medium-sized companies they consult with, Cara Walton, for Harbour Results in Southfield, Michigan, said her clients “can’t find people,” and when they do find them, turnover is high.

US central bankers raised their benchmark lending rate by three quarters of a percentage points this week for a third straight time — the most aggressive pace of tightening seen since the Fed battled inflation back in the 1980s.

Powell and his colleagues are moving rapidly to reduce the highest inflation in nearly 40 years after being slow to spot the threat of broadening price pressures. Critics have slammed them for that error, although inflation has also been worsened by Russia’s invasion of Ukraine, which boosted food and energy prices around the world.

Fed Vice Chair Lael Brainard, speaking later during the event when the panel considered how families are adapting to the post-pandemic economy, noted that price pressures were hitting the most vulnerable particularly hard.

“We have seen high wage growth among the lowest income workers but looking overall, wages haven’t kept up with inflation and inflation is very high,” she said. “If we look at who bares the burden, everybody is affected by high inflation but of course it puts special burdens on lower income families as well as on people with fixed incomes.”

US consumer prices rose 8.3% in the 12 months through August and officials have vowed to cool them even if that means causing harm to the US economy and its workers. 

Officials couch this as an effort to slow excess demand and put the labor market back into “balance” — a euphemism that glosses over the fact many people could lose their jobs in the process. The labor market has so far remained strong, with unemployment at 3.7%, but policy makers this week forecast that would rise to around 4.4% next year as they continue to raise interest rates.

Fed Listens events have been held around the US since 2019 as the central bank sought public input on a review of its approach to monetary policy. That overhaul was completed in 2021 but the Fed has kept them going to maintain public engagement at a time when its actions remain front-page news.

In closing, Powell thanked the panelists for sharing their experiences of the post-pandemic economy.

“We get to spend a lot of time with data, here at the Fed. But I personally would say I need to hear narratives, I need to hear stories, about what’s really going on out there for it all to make sense,” he said. “We all learned a lot from you today.”

(Adds comment from closing remark from Powell in final paragraph.)

©2022 Bloomberg L.P.

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Charting the Global Economy: Fed Headlines Concert of Rate Hikes – BNN Bloomberg

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(Bloomberg) — Sign up for the New Economy Daily newsletter, follow us @economics and subscribe to our podcast.

The Federal Reserve, Bank of England and Sweden’s Riksbank were just a handful of central banks raising interest rates this week, underscoring the drastic tightening cycle underway as inflation grips the global economy.

Switzerland, South Africa also boosted their benchmark rates. Indonesia, Philippines and Vietnam raised borrowing costs as well following the Fed’s decision.

On the other hand, Turkey surprised with another rate cut, despite inflation running at a 24-year high and the lira trading at a record low. Officials in Hungary may deliver at least one more hike before considering ending the steepest monetary tightening cycle in the European Union. 

Here are some of the charts that appeared on Bloomberg this week on the latest developments in the global economy:

World

The Fed headlined a marathon week of interest-rate hikes, which also stretched to central bankers in Taiwan, Sweden and Mongolia. Meanwhile, Brazil and Norway indicated they may take a time-out from their tightening of monetary policy. The Bank of Japan stuck with its ultra-low rates and Governor Haruhiko Kuroda said there’s little prospect of a near-term rate boost.

The price of copper — used in everything from computer chips and toasters to power systems and air conditioners — has fallen by nearly a third since March. Still, some of the largest miners and metals traders are warning that in just a couple of years’ time, a massive shortfall will emerge for the world’s most critical metal.

US

Fed Chair Jerome Powell vowed the US central bank would crush inflation after officials raised interest rates by 75 basis points for a third straight time and signaled even more aggressive hikes ahead than investors had expected.

Sales of previously owned homes fell for the seventh straight month in August as rising mortgage rates continued to erode affordability and deal a considerable blow to the housing market. The string of declines was the longest since the housing market crashed in 2007.

More consumers are saddled with credit-card debts for longer periods of time, according to a survey, struggling to pay down amid high inflation and rising interest rates. Sixty percent of credit-card debtors say they have been in credit-card debt for at least a year, up from 50% a year ago, CreditCards.com said.

Europe

The risk of a euro-area recession has reached its highest level since July 2020 as concerns grow that a winter energy squeeze will cause a slump in economic activity. Economists polled by Bloomberg now put the probability of two straight quarters of contraction at 80% in the next 12 months, up from 60% in a previous survey.

Dockers at Liverpool, Britain’s fourth-biggest container port, voted unanimously to reject their employer’s latest pay offer — and walk off the job for two weeks in a strike that got into full swing on Tuesday. It’s the latest outbreak of the labor unrest that’s sweeping through key choke points of the world economy.

Asia

Singapore looks like an attractive location for firms wanting to exit Hong Kong, but they may find a move to the city-state hits their bottom line more than expected. With inflation soaring to the highest level in 14 years, expenses including the hiring of talent, office space and utilities are rising at a faster pace in Singapore than in its financial rival, where price increases have been more modest. 

South Korea’s early trade data showed exports are only just still growing in September in a sign of fallout from lockdowns in China and a struggling global economy. Headline exports dropped 8.7%, led by a 14% decline in shipments to China.

Emerging Markets

Emerging Asian markets are reaping the rewards of years of building up foreign-exchange reserves as they become a preferred destination for risk investors. Even as the dollar rallied, emerging Asia’s currencies are mostly faring better than traditional havens such as the yen and euro.

Mexico’s inflation remained little changed in early September, giving Banxico minimal room to reduce the pace of interest rate hikes at its meeting next week.

©2022 Bloomberg L.P.

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