Canadian Economy Faces ‘Flatline’

Emmet McGonagle

September 5, 2023

Canada's economy shrank at a 0.2% annualised pace in the second quarter, according to a Statistics Canada report (source: The Globe and Mail).


The report found that GDP growth for Q2 came in at -0.2% - below the average economist’s forecast of 1.2% - marking the first outright negative major datapoint for Canada this year.


This downturn was largely due to forest fires which led to multiple mine closures across Quebec in June alongside iron ore mining in Newfoundland and Labrador and activity in natural gas and crude oil extraction in Alberta the month prior. 


Mining and quarrying (except oil and gas) also fell 5.7% in June, while agriculture, forestry, fishing and hunting sectors fell 3.5% in the second quarter (the sector's second consecutive quarterly decline).


On the topic, data analyst Justin Vung commented via LinkedIn: ”Canada's GDP per capita was higher in the 2nd quarter of 2018 than it was in the 2nd quarter of 2023. Five years with no economic growth.


“Bad government policies that are more concerned with redistributing wealth instead of improving productivity and growing wealth has led to a lost decade in Canada,” he concluded.


‘People in BC are already hurting’


With an interest rate decision coming up next Wednesday, British Columbia Premier David Eby is calling on Bank of Canada to pause rate hikes as it's "hurting" people.


In a written letter to governor Tiff Macklen, Eby said: “People in BC are already hurting. In your role as Governor, I urge you to consider the full human impact of rate increases and not further increase rates at this time.


“On the ground in our province,” he continued, “interest rate hikes are causing more and more people to report they could not afford to cover an unexpected $500 expense and who are moving from financial security into financial insecurity.”


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Canadian Unemployment Grows in ‘Labour-Constrained Economy’

By Emmet McGonagle • December 1, 2023
Canada’s unemployment rate has trended higher once again this month, according to the latest iteration of Statistics Canada’s November labour force survey.

Workers Call for Pay Transparency

By Emmet McGonagle • November 29, 2023
More than half of workers believe that disclosing worker compensation details on job postings will lead to better equality in pay, according to the latest iteration of LinkedIn’s Workforce Confidence Index . The index - which is based on a survey of 3,302 members in Canada between June and September 2023 - found that 52% of people asked felt that people sharing their pay information (including salary and bonus) would improve workplace equality, compared to 48% in 2022. This number varies between different generations, with younger Canadians more likely to express support for pay transparency (73%), followed by 69% of Millennials, 46% of Gen X and 44% of Baby Boomers. However, 37% of those surveyed remarked that they felt anxious about sharing their pay information - a 2% rise from the year prior. Likewise, just under half (49%) said they felt well compensated for the work they do while 74% expressed that the pay gap between CEOs and employees had become too wide. The people of LinkedIn have come out in their dozens to give their two cents on the topic, with Adrienne Tom , executive resume writer for executives, saying: “ I'm all for salary transparency, so long as the number is clear and legit. Some postings list salary ranges so wide that the actual salary number isn't entirely clear, leaving job seekers confused.” “If you have a manager who is not advocating for the pay gap, you are working for the wrong manager,” remarked career strategist Sweta Regmi , while noting that women in Ontario earn an average of $0.87 for every dollar earned by men. On the topic, she added: “Salary ranges with job postings can help close the gender pay gap while allowing companies to find qualified candidates more quickly.” Do you have a question about angel investing? Get in touch with Valhalla Private Capital via our contact page .
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