A labour shortage will reduce income inequality. But inflation will trend higher
Written by economists Charles Goodhart and Manoj Pradhan, The Great Demographic Reversal is a provocative read. And with 81 diagrams and 23 tables, it’s chockful of data in support of its thesis. That thesis is simple: “Of one thing we are sure, the future will be nothing like the past.” Or at least nothing like…
Increases to the Marginal Effective Tax Rate taking even more of your hard-earned money
New Conservative leader Pierre Poilievre is correct when he says governments discourage work with taxes and clawbacks. The Marginal Effective Tax Rate (METR) measures what government takes from each new dollar earned in taxes and clawbacks of income-related government benefits. In his leadership acceptance speech and an August 19 video called “Make work pay,” Poilievre…
Younger people have values and expectations unlike those of their parents
In a free and open economy like Canada’s, the goods and services we enjoy are produced by entrepreneurs and business people. The biggest challenge they now face in providing this largesse is a lack of people willing and able to fill jobs – the talent. Particularly in short supply are younger workers. This shouldn’t be…
People who have worked in customer service jobs are now avoiding these positions at all costs
It should be good news. Canada now has the lowest unemployment rate ever. Certainly, a high unemployment rate is bad news. When the rate hits double digits with one in 10 out of work, the economy is in trouble and Canadian workers – and politicians – become fearful about getting and keeping a job. But…
Increasing wages works to some extent. But retraining and being a better boss will do more
There are many challenges to running a business, including getting capital, getting customers and meeting the competition. Add staffing to the list. Hiring workers used to be less difficult. Any vacancy announcement attracted many more applicants than employers were able to consider. But now, there are multiple vacancies for every able, willing and available worker.…
Canada’s economy has transitioned from the resources under our feet to the resources between our ears
The first month of a new year is named January after the Roman god Janus, who had two faces – one looking backward and the other looking forward. Janus illustrates humanity’s ambition that the first month of the new year is a time to take stock of the past and make plans for the future.…
The rules that have guided our economy no longer apply
Did you notice that 2022 began with far fewer forecasts and outlooks than are usually seen when we put up our new annual calendars? And most of those who bravely made predictions for 2022 have already been proven wrong. The emergence of the Omicron variant of COVID-19, just when everyone was eagerly anticipating the end…
The pandemic has taught us that life beyond the job is possible
The wage gap between men and women stubbornly persists even after adjusting for all the usual factors like education and occupation. Career and Family: Women’s Century-Long Journey Toward Equity, a new book by Harvard professor Claudia Goldin, takes a fresh look at the issue. Goldin introduces the concept of greedy jobs. These are the jobs…
Labour shortages, inflation and supply challenges are forcing businesses to make serious decisions
The steely blade of the hunting knife at my throat made me swiftly take stock of the seriousness of the situation and my immediate options. At the age of 26, I was selling goods that included hunting knives from an outdoor stall when a patron grabbed a knife and held it to my neck, demanding…
Making it easier for professionals certified in over 100 occupations to move to the province
While nearly one in three Canadian businesses is reporting labour shortages, Alberta is taking steps to make it easier for professionals certified in over 100 occupations to move to the province. Currently, these professionals wait between six and 12 months for their credentials from other provinces to be recognized. Thus, highly proficient Canadian-trained professionals like…