CANADIAN EARNINGS and EMPLOYMENT RATES
Employment Rates and Employment Profiles and Productivity Chart
June 2020 Provincial Earnings
Average Alberta earnings are now $62,664 and:
"On May 15 2020, the Government of Canada announced that the CEWS (Canada Emergency Wage Subsidy) will be extended by an additional 12 weeks to August 29, 2020"
STATISTICS CANADA DATA: Employment & Average Earnings including Overtime seasonally adjusted, for all employees (2 months lag) for British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec, Newfoundland, New Brunswick, Prince Edward Island and Nova Scotia.
CANADIAN EMPLOYMENT RATES
in Vancouver, Calgary, Toronto, Montreal and their Provinces
"The employment rate (table above, formerly the employment/population ratio) is the number of persons employed expressed as a percentage of the population 15 years of age and over seasonally adjusted.
Notice that before Covid 19 arrived in Canada at the beginning of 2020, the Bank of Canada's policy preoccupation of targeting inflation at 2% succeeded in getting employment rates to approximately where they were 10 years ago and since the March 2009 crash and after 11.4 years of ZIRP & NIRP, inflation targeting and increasing corporate bailouts have offered little relief for labour sector payrolls.
If I have read the statement of Revenue & Expense from StatCan to 2Q 2020 correctly, I see that the total sum of SUBSIDIES to Corporations under the classifications of "Products & Imports" and "Production" ($23,744M) have INCREASED 23.6% 2Q/2Q. TAX REVENUE from Corporations and Government Business Enterprises ($32,152M) have DECREASED 4.9% 2Q/2Q but Revenue from corporations remains 35% more than the Subsidies.
Trickle down economics continues to widen the wealth gap (see my June 20, 2020 post on "Household Networth"; the table illustrates that only 20% of Canadian households have over $1,000,000 in net worth according to Parliamentary Budget Office in June of 2020.
Our new Bank of Canada Governor, Tiff Macklem said on June 22, 2020 "Our main concern is to avoid a persistent drop in inflation by helping Canadians get back to work." The argument is that low rates of interest will stimulate the corporate markets to invest in production, hire more labour units and as wages rise produce more consumption GDP which Canada relies on for an "economy".
Well it did not take a global pandemic to spoil that trickle-down plan. What did happen was that Canada joined the upper ranks of global unaffordable housing (Demographia), and irrational exuberant bubbles in "paper" assets as the corporate and private sectors inflated the fixed income and equity markets leaving the consumer to leverage itself and forgo savings in order to maintain lifestyle.
Beat the wealth gap, get an education and work from home.
STATCAN Highlight Snippet
"The number of Canadians who were employed but worked less than half their usual hours for reasons likely related to COVID-19 fell by 259,000 (-14.6%) in August. Combined with declines in May, June and July, this left COVID-related absences from work at 713,000 (+88.3%) above February levels."
UNEMPLOYED and EMPLOYED in Canada Including Quebec, Montreal, Ontario, Toronto, Alberta, Calgary, British Columbia, Vancouver
The Global Distribution of Routine and Nonroutine Work, June 2020
Abstract Snippet: Using the predicted country-specific measures for 87 countries that together employ more than 2.5 billion workers, we find that from 2000 to 2017 the shift away from routine towards non-routine work was much slower in low and middle-income countries than in the high-income countries, leading to an increasing gap in average routine-task intensity.
These changes in the characteristics of minimum wage employees occurred primarily over two periods. First, just prior to—and throughout—the 2008–2009 recession, the proportion of employees earning minimum wage rose, with an increasing number of new and existing workers in minimum wage jobs. Second, in 2018, the proportion of employees earning minimum wage rose to unprecedented levels, as increases in the minimum wage levels in Ontario, Alberta and British Columbia resulted in a number of existing employees joining the ranks of minimum wage workers. StatsCan September 11, 2019
Throughout the 1980s and 1990s, the purchasing power of Alberta's lowest-wage workers was steadily eaten away. The recent increases have also brought Alberta more in line with the national average, when it comes to the proportion of workers who earn minimum wage. CBC News July 2018
"Maximize Human Well Being for Everyone"
The Fourth Industrial Revolution
Full Time and Part Time Workers in Canada by Age since 1976
Older part time workers in Canada, 45 and older, both men and women want work. That trend accelerated for men after the equities crash of 2000 and for women after the 2008 housing crash. When balance sheets approach a negative state, additional income becomes a major household requirement and in 2019, household debt, both by loans and mortgages grew to record levels.
Canadian Productivity Chart via TradingEconomics.com
Canada Labour Productivity Rises the Most on Record
Labour productivity of Canadian businesses rose 3.4 percent in the first quarter of 2020, rebounding from a 0.1 percent fall in the previous period and beating market expectations of a 1.2 percent gain. It was the largest quarterly increase on record, as hours worked fell faster than business output following measures to combat the spread of the coronavirus pandemic including lockdowns and business closures. Hours worked in the business sector fell at a record 5.8 percent, after rising 0.1 percent in the last quarter of 2019. The real GDP of businesses dropped 2.6 percent, after stalling in the prior quarter, as output declined in both goods-producing businesses (-1.1 percent) and service-producing businesses (-2.5 percent). The most affected sectors were arts, entertainment and recreation (-14.4 percent); accommodation and food services (-13.1 percent) and transportation and warehousing (-5.2 percent) less. TradingEconomics.com JUN 3, 2020