Climate scientists blame Exxon lobbyists for disinformation that undermines efforts to reduce emissions and global warming

salarshani@businessinsider.com (Sarah Al-Arshani) 
© Pixabay Pixabay

A leaked draft report by top climate scientists blamed lobbyists for climate change disinformation.

The report said the disinformation is stalling efforts to curb emissions, Politico reported.

An Exxon official was previously caught on camera talking about the company's lobbying strategy.


Top climate scientists blamed disinformation and lobbying campaigns including those from Exxon Mobile for slowing down efforts to curb emissions, a leaked draft report obtained by Politico said.

The report, part of an upcoming review of climate science by the Intergovernmental Panel on Climate Change, has a section called "resistance to climate change science" under its North American section.

The report blamed think tanks, foundations, and trade associations that represent fossil fuel companies for spreading fake science that misleads the public and hampers efforts to curb the climate crisis.

"Rhetoric on climate change and the undermining of science have contributed to misperceptions of the scientific consensus, uncertainty, unduly discounted risk and urgency, dissent, and, most importantly, polarized public support delaying mitigation and adaptation action, particularly in the US," the report said.

This comes after Greenpeace investigation project Unearthed released videos showing an Exxon Mobil official who was tricked to believe he was in an interview speaking frankly about the group's lobbying strategies.

Keith McCoy, Exxon's senior director for federal relations, spoke about "shadow groups" working to influence senators to weaken parts of President Joe Biden's infrastructure bill.

"Joe Manchin, I talk to his office every week," McCoy bragged to the interviewer. He called the Democratic senator from West Virginia a "kingmaker" and discussed how "on the Democrat side we look for the moderates on these issues" in their efforts to stop policies that could hurt the company's business.

In a statement, Exxon Mobil Chairman and CEO Darren Woods said: "We condemn the statements and are deeply apologetic for them, including comments regarding interactions with elected officials."

Rep. Ro Khanna, who chairs the environment subcommittee of the House Oversight and Reform Committee, told Politico he's spoken to government leadership about subpoenaing leaders of groups like Exxon, Chevron, and other fossil fuel companies about disinformation efforts

Khanna also said he and Sen. Sheldon Whitehouse will write laws that force these companies to disclose what money is going to groups that distort climate information.

"It is a major problem. One of the reasons that we haven't had action is that we don't have a common source of facts," Khanna told Politico. "Until we solve the climate disinformation issue or at least mitigate the issue, it becomes very hard to build a broad-based political consensus that is needed to take the kind of bold steps that are needed to tackle the crisis."

Insider has reached out to Exxon for comment.

Read the original article on Business Insider

A SCENE FROM HELL

Harrowing video shows the Gulf of Mexico on fire after an oil pipeline rupture.

Democrats point to that video as evidence of a need to fund the Green New Deal.

insider@insider.com (Lauren Frias) 2 hrs ago

 

Brian Kahn on Twitter: "The Gulf of Mexico is literally on fire because a pipeline ruptured https://t.co/J4ur5MNyt1" / Twitter

A fire raged on the surface of the Gulf of Mexico after an oil pipeline ruptured early Friday.

Videos of the blaze bubbling up like molten lava went viral on social media.

Democratic lawmakers used the incident to mock those who refuse to acknowledge the climate crisis.

Democratic lawmakers mocked climate crisis deniers after an underwater oil pipeline in the Gulf of Mexico ruptured early Friday, setting the surface of the water ablaze.

The fire raged in the Ku Maloob Zaap oil field, located near the southern rim of the Gulf of Mexico, around 5:15 a.m. local time and was completely extinguished by 10:30 a.m., according to Mexico's state-owned oil company Petroleos Mexicanos, also known as Pemex.

Videos of the blaze bubbling up like molten lava went viral on social media, with some users dubbing it as an "eye of fire" given the fire's round shape.

Sen. Brian Schatz of Hawaii, a proponent in the fight against the climate crisis, shared the video on Twitter with the caption: "bUT CAn wE aFFord CLimaTE aCtion."

Rep. Alexandria Ocasio-Cortez, who has also championed legislation to address the climate crisis, also shared the video of the Gulf of Mexico fire, criticizing lawmakers who opposed her Green New Deal proposal.

"Shout out to all the legislators going out on dinner dates with Exxon lobbyists so they can say a Green New Deal is too expensive," she tweeted with a thumbs-up emoji.

A representative for Schatz did not immediately respond to Insider's request for comment. A spokesperson for Ocasio-Cortez said the congresswoman doesn't have anything additional to comment.

Read the original article on Business Insider

TC Energy seeks more than $15 billion in damages from U.S. over Keystone XL

(Reuters) -TC Energy Corp is seeking more than $15 billion in damages from the U.S. government over the cancellation of its Keystone XL (KXL) project, the Canadian pipeline operator said on Friday

.

© Reuters/Terray Sylvester FILE PHOTO: A depot used to store pipes for TC Energy Corp's planned Keystone XL oil pipeline is seen in Gascoyne

The company earlier this month officially canceled the $9 billion project after U.S. President Joe Biden revoked a key permit needed to build it on his first day in office in January.

TC Energy said on Friday it had filed a notice of intent to begin a legacy North American Free Trade Agreement (NAFTA) claim under the United States-Mexico-Canada agreement.

The project, which was planned to carry 830,000 barrels of heavy crude per day across the border from Alberta in Canada to Nebraska, had been delayed for over a decade following opposition from U.S. landowners, Native American tribes and environmentalists.

The company had booked a C$2.2 billion ($1.79 billion)impairment charge to its first-quarter results in May related to the suspension of construction on the project.

($1 = 1.2321 Canadian dollars)

(Reporting by Shariq Khan in Bengaluru; Editing by Sriraj Kalluvila)

Researcher says N.L. wrong to 'double down' on fossil fuels with offshore subsidies

ST. JOHN'S, N.L. — Newfoundland and Labrador's federally funded subsidies for offshore oil are a "misuse of funds" and another step in the wrong economic direction for the cash-strapped province, says a political scientist who has studied the province's oil sector

.

© Provided by The Canadian Press

Angela Carter, an associate professor at the University of Waterloo, says it's increasingly difficult to watch the government offer hundreds of millions of dollars in public money to oil companies while not taking effective steps toward building an economy that isn't reliant upon oil.

"What oil producers are trying to do is get whatever they can out of the remaining reserves," Carter, author of the 2020 book "Fossilized: Environmental Policy in Canada's Petro-Provinces," said in a recent interview. "They're leaning on governments like Newfoundland and Labrador that are in distress … to be propped up or bailed out for those last few drops. And that's being done not in the interest of governments, but for private interests."

She worries the latest offer — $205 million in cash and a $300-million break in royalties for the owners of the Terra Nova oilfield — will encourage other oil companies to seek similar treatment.

The Newfoundland and Labrador government has offered oil companies more than $280 million since December 2020 to restart projects in peril or to keep them in play. The money comes from a $320-million fund provided to the province by Ottawa, earmarked for safety improvements, maintenance and upgrades for facilities, research and development and clean technology in the oil sector.

"This is about jobs in our province," federal Natural Resources Minister Seamus O'Regan told reporters last September when the funding was announced. "This is about the future of our sector."

Until a tentative deal was announced on June 16, the province had been bracing for the abandonment of the aging Terra Nova field. With the breaks provided to its owners, the government will collect $35 million in royalties — about one-tenth of the full amount expected from the 80 million barrels left in the field.

Premier Andrew Furey and Energy Minister Andrew Parsons have justified the aid by saying if the project didn't go ahead, there'd be no royalties at all. And with the money coming from Ottawa, the move hasn't cost Newfoundland and Labrador a cent, nor could it have been spent elsewhere, they said.

"We're going to get money back from the indirect jobs and the direct jobs that come from this," Parsons told reporters in mid-June. "I think it's a really good move for this province … we've protected the future, we've saved jobs and we're using the resource in the best interest of the province."

Rob Strong is a St. John's-based consultant with decades of experience in the industry. Like Carter, he believes government has set a precedent with the $300-million royalty break for Terra Nova. "If I was an oil company, I'd be looking for the same sort of deal," he said in an interview this week.

Strong said he worries Newfoundland and Labrador's bargaining position is "not as great as we were led to believe." Other jurisdictions, such as Guyana, produce the same light sweet crude with similar emissions but for lower prices, he said.

Carter questions whether governments should be giving public money to oil companies at all, especially based on promises of stability and jobs. "The sector is interested in profits from extraction, and yet we have been told … this is about jobs," she said. "This is a doubling down on the oil sector."

She points to a January 2021 study from economist Jim Stanford at the Centre For Future Work showing the Canadian oil sector has been shedding jobs since 2014, even though production has gone up. The oil industry, the report said, is not a reliable source of future jobs.

In Newfoundland and Labrador, direct employment with offshore projects fell from nearly 13,750 jobs in 2014 to about 4,500 in 2019, according to benefits reports filed by operators. That drop is largely due to the end of construction on the Hebron project, which began pumping oil in 2017. As of May 2021, production levels in the province are some of the highest they've been in decade, says a report from the provincial offshore regulator.

"A lot of the (oil) jobs are construction jobs, and they're temporary," said Chris Severson-Baker, Alberta's regional director at the Pembina Institute, a national energy think tank. Once construction is finished, companies are increasingly turning to automation and artificial intelligence to shed staff, he said in an interview.

"Everywhere they can, they're cutting costs," he said. "And this is before any kind of real reduction in demand, globally. This is in response to the competitive price environment that oil and gas has been in for a while."

In Newfoundland and Labrador, those jobs are particularly precarious with no meaningful efforts from governments to build new industries for workers to turn to when fields run dry or — as was the case with Terra Nova — when progress halts because owners want to pull out, Carter said.

She said the government's choice to hand the federal money to oil companies rather than support laid-off workers directly through retraining or retirement packages is a "misuse of funds."

"Furey has got to create a (team), and get the people in the room to figure out what the next thing is," she said. "We gave a lot of public support and research dollars … to figure out a way to join this oil boom. So, same thing now, we need to do that again."

A spokeswoman for Furey, Meghan McCabe, said work is underway on a green transition. "We are developing a renewable energy plan with a clear and sustainable long-term vision for our province," she said in a statement Tuesday.

This report by The Canadian Press was first published July 2, 2021.

Sarah Smellie, The Canadian Press

Old-growth in contentious Fairy Creek region worth more standing than logged, says new study

A new economic study shows ancient trees in the contentious Fairy Creek region on southern Vancouver Island are worth considerably more standing to nearby communities than if they were cut down.

And it confirms investments and efforts by the former forestry hub of Port Renfrew to rebrand itself as an ecotourism hot spot are right on track, business leaders say.

Protecting all the old-growth forests in the study area near Port Renfrew could result in an additional $40 million in net economic benefits over the next 100 years compared to logging as usual, said Andrea Inness of the Ancient Forest Alliance, which commissioned the independent research.

The cost-benefit analysis indicates carbon storage or sequestration, recreation, tourism, coho salmon habitat, non-timber forest products like floral greenery and mushrooms, along with research or education opportunities are worth more than timber extraction alone, Inness said.

“The findings are significant because they tell us that old-growth forests are not being managed in the broader public's best interest,” Inness said.

“We need to see the province start making decisions around old-growth management that are in the best interest of all British Columbians — and not just the forest sector.”

The two-and-a-half-year study focused on the province’s Arrowsmith Timber Supply area in Pacheedaht and Ditidaht First Nations’ territories within a 35-kilometre radius of Port Renfrew, said Inness.

As only a portion of harvestable forests near Port Renfrew were analyzed, the study actually underestimates the overall value of standing old-growth, she said.

Ancient forests in the Port Renfrew region have been at the centre of old-growth logging blockades by Rainforest Flying Squad (RFS) activists since August.

Both the Pacheedaht and Ditidaht have asked the protesters to leave the region so they can develop a regional integrated resource management plan, but protesters have remained, with close to 350 people arrested as of Monday.

And the NDP government is under increasing public pressure at home and abroad to take more action to protect remaining at-risk, old-growth forests throughout the province.

The new study reflects the economic changes that Port Renfrew is experiencing on the ground, said Karl Ablack, president of the Port Renfrew Chamber of Commerce.

If all old-growth forests examined were protected, tourism itself would nearly make up for losses associated with timber extraction by adding an equivalent number of jobs and covering 66 per cent of the losses to GDP, the study said.

The economy of Port Renfrew, formerly a thriving resource community until the 1970s and ’80s, stalled with severe declines in forestry and the commercial fishing industry, Ablack said.

But the small community has revived itself over the last 20 to 25 years, first as a result of recreational fishing, and has since diversified into other ecotourism activities, including big tree tourism, he said.

In 2016, the community’s chamber put forth a resolution to the BC Chamber to support the protection of old-growth forests in areas where these forests had greater tourism value left standing. The resolution was unanimously adopted, noted Ablack.

Selling itself as the Tall Tree Capital of Canada, people flock from around the globe to visit the gnarly giants in the now-protected Avatar Grove, or Big Lonely Doug, a massive Douglas fir that stands alone in a clear-cut.

A strict visitor count has yet to be done, but approximately 5,000 cars a day travel to Port Renfrew during the height of summer via the Pacific Marine Circle Route — a loop on southern Vancouver Island featuring the region’s wild beaches and majestic forests, Ablack said.

“And there are days at Avatar Grove or at Lonely Doug where you can have 200 cars lined up on the side of the road,” he said.

“The numbers in the recent study have been very important to help quantify some of that data.”

Tourism is a core industry across the province, and virtually every community relies on revenue and employment generated from visitors, especially as pandemic travel restrictions ease, said Walt Judas, CEO of the Tourism Industry Association of BC (TIABC), in a statement.

International tourists in particular are keen to experience B.C.’s natural beauty not found anywhere else, he said.

“With much existing and potential tourism value to be gained from old-growth, it makes economic sense to keep what’s left standing,” Judas added.

Beyond a focus on tourism revenue, traditional economic analyses typically don’t tally up the valuable ecosystem services old-growth forests provide for free, and which are increasingly important as climate change intensifies, Inness said.

“If you only consider short-term job creation, revenues and impacts to GDP, the economics aren't telling the whole story,” Inness said, adding old rainforests store large amounts of carbon above and below ground and release carbon slowly as they decay.

And harvesting ancient groves sends more carbon into the atmosphere than can be compensated for by tree-planting or creating secondary wood products, she said.

Carbon storage is the biggest economic benefit to justify leaving old-growth standing and to reduce the massive financial burdens climate change is having, she added.

If old-growth in the study region was left alone, forest carbon emissions would be reduced by 569,250 tonnes, she said.

“This fact seems particularly timely, given B.C. is hitting record high temperatures,” Inness said.

Though the Pacheedahts recently asserted their right to determine how forest resources should be used in their territory, the nation is also heavily invested in ecotourism — owning a gas station, general store, and a resort, as well as recently securing $1 million in COVID-19 relief funding to expand and upgrade its campsite.

Mike Hicks, director for the Juan de Fuca Electoral Area, which includes Port Renfrew, said logging will likely remain part of the region’s economy no matter what decisions are eventually made around old-growth.

Even if some old-growth logging continues, Hicks believes Port Renfrew's economy is diversified enough to weather any limited damage to the community’s brand.

The area still boasts world-class recreational fishing, numerous beaches, surfing at Jordan River, excellent accommodations and restaurants, and Port Renfrew is still an entry point for the iconic West Coast Trail, he said.

And now with the availability of satellite internet services and the province's recent commitment to extend cell service along Highway 14 between Sooke and Port Renfrew, the town has everything it needs to consolidate its reputation as a destination location, Hicks said.

“There is no stopping Port Renfrew,” Hicks said.

“It’s not going to live or die on old-growth logging because it’s got so much going for it.”

But keeping old-growth in the region has greater inherent value economically, Ablack said, adding second- or third-growth logging is likely to continue.

“Do I see logging going away? Absolutely not,” Ablack said.

“Do we need to redirect it to better serve sustainability? Certainly, we can look at that.”

[Editor's Note: This story was updated Friday, July 2 to clarify the study examined harvestable old-growth in the provincial timber supply area within 35 kilometres of Port Renfrew – not all harvestable forests in that radius.]

Rochelle Baker / Local Journalism Initiative / Canada’s National Observer

Rochelle Baker, Local Journalism Initiative Reporter, National Observer

2 delivery companies in Oregon reportedly stopped working for Amazon, their only client, alleging 'intolerable' conduct and unsafe working conditions

sjackson@insider.com (Sarah Jackson) 

 Provided by Business Insider Patrick Fallon/Getty Images

Two delivery companies reportedly cut ties with Amazon, accusing it of poor pay and work conditions.

Triton Transportation and Last Mile Delivery say Amazon changed rules and routes without notice.

They're reportedly seeking $36 million and won't resume deliveries unless their conditions are met.

Two delivery companies in Oregon made the decision to effectively shut down rather than keep delivering for Amazon, according to Vice.

Last Mile Delivery and Triton Transportation stopped working with Amazon, which is their only client, last week, The Oregonian reported.

"Amazon has been nickel and diming us so bad that if we don't make change we can no longer offer the support and incentives that thus far we have been able to provide," wrote Last Mile Delivery co-owner Tracy Bloemer in a letter to workers seen by The Oregonian. "We believe most of the routes are unsafe and require drivers to deliver in an unsafe manner."

The companies sent a letter to Amazon accusing the e-commerce giant of "intolerable, unconscionable, unsafe, and most importantly, unlawful" conduct in the past two years, according to Vice. Together, the delivery companies employ roughly 150 drivers and make more than 20,000 Amazon deliveries in the Portland area on average every day, The Oregonian reports.

The companies said Amazon nixed delivery routes and changed rules without notifying them, according to Vice. The letter, obtained by Vice says that, because drivers commit to routes ahead of time, Last Mile and Triton are still on the hook for wages even if Amazon cuts routes at the last minute due to low inventory or warehouse staffing.

In the letter, the companies also accused Amazon of accessing drivers' personal information, reducing reimbursements, firing drivers without giving the companies a say in the matter, and allocating deliveries unevenly among workers. Because deliveries weren't evenly divided, some workers ended up needing to drive faster, potentially endangering other drivers or pedestrians, and work 12-hour shifts, even though Amazon only reimburses them for 10-hour shifts, according to Vice.

Last Mile and Triton are seeking $36 million to cover company damages and pay for laid-off drivers, Vice reports. They told the news outlet they won't resume Amazon deliveries unless the company agrees to its terms regarding pay and working conditions.

"Earlier this week, two Delivery Service Partners abruptly threatened to stop servicing the Amazon account and jeopardize the livelihood of their drivers if we did not pay them $35MM within 48 hours along with a string of other demands," Amazon spokesperson Kate Kudrna told Insider in an email response on Friday. "We refused their demands and they followed through with their threat, terminating their contract with us, leaving their employees confused and looking for answers. We're doing everything we can to support the affected employees including connecting them with other Delivery Service Partners in the area who are hiring."

Amazon says it has more than 2,000 delivery service partners employing more than 115,000 delivery associates across the US. These workers earn more than $17.50 an hour on average, according to the company.

Amazon came under fire earlier this year after drivers said they had to pee in bottles because they didn't have time to use the restroom on their routes. Amazon has denied those claims. Delivery workers have also expressed frustration with surveillance cameras that Amazon said it installed in vans for workers' safety.

Working conditions for the company's warehouse workers are also under scrutiny, with one analysis finding that these Amazon workers were almost twice as likely to be injured than their counterparts at Walmart.

Last Mile Delivery, and Triton Transportation did not respond to requests for comment.
Read the original article on Business Insider

RCMP union first-ever tentative deal with Ottawa could mean $20,000 hike for constables

Christopher Nardi 

OTTAWA – RCMP constables will receive a $20,000 hike to their top salary by next April if the first ever tentative agreement signed between the national police service and its new union is approved.

© Provided by National Post According to the latest numbers on the RCMP’s website, there are currently 11,913 constables within its ranks, meaning that the raise could add up to $238 million to the force’s annual payroll.

According to documents obtained by the National Post, constables — which represent over half of the RCMP’s 20,000 police officers — will see their maximum salary jump from $86,110 as of April 2016 to $106,576 in April 2022 if the agreement is ratified by National Police Federation members.

According to the latest numbers on the RCMP’s website, there are currently 11,913 constables within its ranks, meaning that the raise could add up to $238 million to the force’s annual payroll if all constables reach the top salary echelon (generally after three years of service) beginning next year.

The documents do not contain numbers regarding raises for other uniformed RCMP members, such as corporals, sergeants and inspectors.

RCMP constables, also referred to as 1 st class constables, last received a pay increase in 2016, and no further pay raises were to be given until union negotiations were concluded. The tentative agreement thus contains a 1.5 per cent annual salary increase effective April 1, 2017, as well as a “market adjustment” worth between 1.5 per cent to 2.5 per cent each year until 2022, according to the documents.

If approved, the agreement also stipulates that the annual increases since 2016 will be paid retroactively to members, who are expected to vote on the tentative deal over the summer.

A spokesperson for the NPF declined to comment on details of the tentative deal except to say that it is being submitted to union members for review and discussion ahead of the ratification vote for which there is no fixed date yet.

But in a letter to members obtained by this newspaper, union leadership says the potential deal comes after a “long year of intense and at times contentious negotiations” between the NPF, which is the first ever union to represent federal police members, and the RCMP via the Treasury Board of Canada.

“This Collective agreement ends 4.5 years without a raise and an unprecedented 148 years without a negotiated contract,” reads the letter. “We at the NPF recognize that this has been a roller coaster 5 years, from inception of the NPF, our membership drive, the drawn-out certification and ultimate bargaining process.”

According to union leadership, members’ sick leave and benefits remain “unchanged” in the new agreement, which they say bolsters pay so that it’s “competitive with other police agencies across Canada.”

The letter also explains that process took time because NPF negotiators wanted the “best” deal, not the “fastest”, and that Treasury Board officials originally offered a new salary that was many thousands of dollars below $106,576.

According to each municipal police service’s website, a constable in Ottawa will max out their salary at $100,420.02, a constable in Toronto can earn up to $104,491.87, and a constable in Edmonton can be paid upwards of $112,000.

The boost in salary also comes at a time when critics are calling for a review or even a decrease of police funding in Canada and the United States, a call that has come on the heels of intense scrutiny and protests regarding police use of force following the deaths of a number of people of colour while in custody.

If ratified, the new agreement will also put new pressures on municipal and provincial governments who have struck deals with the RCMP to cover their local policing needs.

For example, the Alberta government is currently studying the feasibility of establishing an Albertan provincial police service to replace the RCMP. In a statement, Jason van Rassel, a spokesperson for Alberta Justice and Solicitor General, said that a “significant increase” to the government’s payments for the police force’s services caused by a new collective bargaining agreement “will be extremely relevant to the ongoing study and discussion of this issue.”

“It’s too early to say what the precise financial impact will be until the Ministry of Justice and Solicitor General analyzes the distribution in rank among officers funded by the Provincial Police Service Agreement (PPSA). Suffice to say, the financial impact will be significant,” van Rassel wrote.

Craig Hodge, a city councillor for the city of Coquitlam, B.C., and a member of the Union of British Columbia Municipalities (UBCM) executive, says cities and towns are likely to feel an even stronger pinch after the COVID-19 ran roughshod on many local economies.

In many cases, municipalities will likely have no choice but to pass the increased cost on to real estate owners via property tax increases, Hodge said. That hike may be particularly sharp for municipalities that have not heeded the UBCM’s warnings for over a year now to prepare for a “substantial” RCMP salary increase.

“This is going to have a really big impact for those 63 municipalities (in B.C.) that do currently contract with the RCMP. Protective services are probably the single biggest item in local governments’ budgets,” Hodge said.

“Local governments really only have one main source for revenue, and that’s property tax,” he added. “Essentially operational expenses, such as emergency services, are paid by through property taxes. So ultimately, this will flow through property tax increases.”

In a statement announcing the tentative agreement (but which contained no financial details) on Monday, RCMP Commissioner Brenda Lucki congratulated both sides for reaching a potential deal. She also highlighted that this was the “first time in history” that there will have been a collective agreement between the force and its uniformed members.

Posthaste: Labour shortages are set to get worse in Canada — and you can blame immigration

Victoria Wells 

© Provided by Financial Post Canadian firms are starting to catch up with the U.S. when it comes to labour shortages.

© Provided by Financial Post

Good morning!

Canada may not be suffering from a labour shortage the way the U.S. is, but that doesn’t mean it won’t in the near future.

And the reason isn’t because available workers lack skills, but rather, because of muted immigration levels.

According to Capital Economics, Canada’s job recovery is in pretty good shape. The labour force has rebounded faster than in the U.S., thanks to a quicker reopening of schools, fewer retiring workers and also because many returning employees are able to keep collecting the Canada Recovery Benefit.

In fact, Capital Economics expects employment in Canada to return to its pre-pandemic levels by October. It’s after that, though, that things start getting dicey.

Stephen Brown, senior Canada economist at Capital Economics, points to the Canadian Federation of Independent Business’s latest small business survey , which shows that Canadian firms are starting to catch up with the U.S. when it comes to labour shortages. Forty-one per cent of businesses surveyed in the June CFIB Business Barometer said a lack of skilled labour was limiting sales and growth. Another 28 per cent said a shortage of un- or semi-skilled labour was affecting operations.

Brown says the reason for these shortages is ultimately a lack of newcomers to Canada.

“The big issue is immigration has slowed sharply,” he said.

Last week, Canada announced it would begin letting 23,000 people who’ve been approved as permanent residents into the country. But, it will take some time to get those people into the workforce.

“For the past year, they have only been processing applications for people working in Canada,” Brown says. “So while the government announced last week that migrants are allowed to travel to Canada again, the processing backlog means immigration will remain low into 2022.”

A report from RBC Economics breaks down the immigration issue a bit further and explains why getting more people into Canada is so critical for the labour market.

Before the pandemic, an aging population was one of the biggest problems facing the Canadian economy. That hasn’t changed. And while Canada has some of the highest immigration inflows in the world, it’s still not enough to offset the decline in the working-age population.

The report says the country will need a steady stream of immigrants with “future-focused skills” post-pandemic. Jobs in advanced tech, skilled trade and health care will be more important than ever. And training current Canadians won’t be enough to meet demand.

Tapping into Canada’s temporary resident population — people who come here as international students or to work short-term — might be one way to increase immigration numbers and make sure skilled workers fill jobs. Historically, only 25 per cent of these people go on to become permanent residents. And, RBC says, evidence has shown that immigrants with prior experience in Canada go on to do “significantly” better than those that don’t.

“Over the longer term, Canada would benefit from a more responsive approach to immigration: one that addressed labour-force gaps and targeted the world’s best talent all while helping to offset domestic aging,” Andrew Agopsowicz, a senior economist at RBC, said in the report.

In the meantime, labour shortages appear inevitable.

More people than ever are unemployed because they quit their jobs. It shows Americans are getting pickier about pay

 and benefits.

insider@insider.com (Juliana Kaplan,Andy Kiersz) 

© Provided by Business Insider A "now hiring" sign at a BevMo store on April 2 in Larkspur, California. Justin Sullivan/Getty Images

In June, 942,000 people were unemployed because they voluntarily quit, a pandemic-era high.

It reflects labor-market tightness, which is strange when 9.5 million are out of work.

Wages ticked up in June, but they remain relatively low for leisure and hospitality workers.

While the number of jobs added in June trounced expectations, another measure also paradoxically ticked up: More unemployed people said their reason for being jobless was quitting than in any other month of the pandemic.

In June, 164,000 more unemployed people quit or voluntarily left their jobs, data from the Bureau of Labor Statistics indicated, bringing the total number of so-called job leavers to 942,000 for the month. That latter figure is a new pandemic-era high for people who quit and remain unemployed.

It continues a trend of elevated quits throughout the past couple of months, showcasing that while recovery may be on the horizon, the labor market is still pretty weird.

Video: 40% of Workers Would Think About Quitting Their Jobs If They Weren’t Allowed to Work Remotely (Veuer)

Job vacancies reached record highs in April, the BLS said, a month when the total number of Americans leaving their positions hit a 20-year record: 4 million Americans quit their jobs that month. That data included people who quit and found new jobs.

The number of people quitting might show that workers are still choosier about their jobs and work, especially as employers vie to lure them in with everything for $50 to show up for an interview to hiring bonuses. The number of quits also comes as 26 states move to end their participation in federal unemployment benefits, a measure that many governors explicitly implemented to compel workers back into the workforce.

Some workers had been "rage quitting" their positions during the pandemic amid poor working conditions and low wages, Insider's Áine Cain previously reported.

Wages also ticked up in June, potentially indicating that employers are being forced to increase wages to lure in and retain workers. The average hourly earnings for all workers rose by $0.10 to $30.40 in June, following increases in April and May, In fact, the jump between April and May marked the fastest rate of wage growth since 1983 (excluding a 2020 lockdown-driven spike).

For instance, leisure and hospitality made up a large chunk of gains in June, adding 343,000 jobs. That industry has seen consistent strong wage growth over the past few months, and just hit $16.21 in hourly earnings. It's also an industry that saw elevated quits in April, before wages climbed up even higher. That could support claims that raising wages across the board might be one solution for bringing workers back.
Read the original article on Business Insider

Biden's Labor Secretary is watching 'very closely' after Indiana tried to cancel federal unemployment benefits and a judge intervened

insider@insider.com (Juliana Kaplan) 

© Provided by Business Insider Labor Secretary Marty Walsh. Jacquelyn Martin/AP

Indiana moved to cancel extra unemployment benefits, but a judge has halted that.

Labor Secretary Marty Walsh told Insider he's watching the situation closely.

The state has since said that it can't start up those benefits again, HuffPost reports.

In Indiana, federal unemployment benefits ended early - until they didn't. Biden's Labor Secretary told Insider that he's on the case.


After the state's announcement that the $300 weekly benefits would end on June 19, instead of the scheduled September end date for the program nationwide, impacted Hoosiers brought a lawsuit against the state and won a preliminary injunction last week that would preserve benefits for thousands as the case proceeds.

But, as HuffPost's Arthur Delaney reported, the state's Department of Workforce Development "claims it can't bring back the benefits." Scott Olson, a spokesman for the agency, told Delaney in an email that Indiana is "is determining how to proceed because the federal programs in Indiana no longer exist after their termination on June 19."

When asked if the Department of Labor has any plans to step in and ensure impacted Indiana residents receive their benefits, Labor Secretary Marty Walsh told Insider, "we've been in contact with the state, and we're watching this unfold very closely."

"I was actually in Indiana last week - I was at a vaccine site - and I was talking to a mother, with her son, to get vaccinated, and she talked to me about the unemployment benefit piece and that she was having a hard time finding a job," Walsh said. He added: "We're gonna monitor the situation as we move forward here."

The case represents one of the latest attempts by unemployed workers to retain their benefits. Over half of the states in the country have opted to end their federal benefits early, cutting off workers throughout the summer.

Many jobless workers who were newly eligible for unemployment insurance under the expanded federal programs could now lose all benefits.

Broadly, 4 million workers will be impacted by benefits ending early. Some politicians and advocates - including Sen. Bernie Sanders - have argued that the Department of Labor is obligated to continue paying out Pandemic Unemployment Assistance (PUA), which made gig workers, among others, eligible for benefits. However, the Labor Department concluded it probably can't step in and continue those payments in states that have ended the program early.

When asked about the impact that benefits ending early had on jobs, Walsh said that, "in the states that have threatened or have cut unemployment benefits, we have not seen an uptick of job searches."

He added: "I think that what's driving our economy is not the threat of cutting unemployment benefits. What's driving the economy is confidence in people coming back to work."

Read the original article on Business Insider