The Federal Conservatives have a plan to help with the labour shortage in Alberta......mass unemployment in the rest of Canada forcing workers to move to Alberta. As a result of this mass unemployment labour rates will decline making it cheaper to build all those upgraders now on hold. Call it a ne0-con industrial strategy.
Unemployment to rise in 2009, Flaherty predicts
Unemployment is slated to rise to 6.9 per cent next year. While that's still far below the 13 per cent jobless rate in the early 1980s recession and 10 per cent in 1991-93, it will still mean hardships as thousands of jobs are shed in manufacturing, energy, mining and other sectorsFlaherty predicted the jobless rate will rise to 6.9 per cent in 2009 from 6.2 per cent now, but Porter predicted it could creep up to 7.5 per cent by the end of 2009 – with a loss of 50,000 jobs for the year.
As the unemployment rate rises, "you'll begin to see some of the steam come out of wages as the labour market loosens up," Porter said. Bruce Cran at the Consumers' Association of Canada said consumers are more pessimistic than Ottawa and are reacting by cutting their spending "From what we're hearing, it seems the government's a step or two behind the reality of what people are thinking."
Boy you can say that again, they have no plan...because having a plan well that would mean well a 'planned economy'....an anathema to neo-cons. So what do they offer us instead why the solution that got us in this mess in the first place back in the bad old days of the ninties. A made in Alberta solution that we saw under Ralph Klein. And he had no plan either except slash and burn.
Flaherty's instinct to cut out of step with world
As the rapidly worsening global recession pushes governments around the world to step up spending, Ottawa's first official response is to cut back. The fiscal update presented yesterday by Finance Minister Jim Flaherty will suck $6-billion out of the economy next year. But it will show the slimmest of budget surpluses, even as his own figures show Canada has slipped into recession. By cutting government spending, limiting its transfers to the provinces and padding its revenues by charging commercial banks to partake in money-market measures, Mr. Flaherty said he will narrowly avoid a deficit. But his moves are exactly the opposite of what many economists recommend in times of recession. Government spending should not be contracting when the economy could use a boost, they argue. In most other developed countries, governments are ramping up multibillion-dollar programs ranging from infrastructure spending to food stamps for the poor.
Progressive economists who have been calling for large stimulus spending reacted angrily yesterday to Ottawa's fiscal update, arguing the government used it to deliver an assault on democratic freedoms, gender, minority and labour rights in Canada."This is class and gender warfare," said economist Robert Chernomas, from the University of Manitoba. "This is the type of economic policy agenda Sarah Palin would have delivered had she been elected president in the U.S." Chernomas is among 88 Canadian economists, sociologists and political scientists who appealed for a stimulus package for the failing economy in a letter last month to Prime Minister Stephen Harper.Members of the Progressive Economic Forum, they oppose the brand of neo-liberal "laissez-faire" capitalism – the markets know best – in vogue until the recent global meltdown.Several economists interviewed yesterday by the Toronto Star said Finance Minister Jim Flaherty let down Canadians by playing politics in time of crisis. They said he failed to offer measures to save jobs or stimulate the economy, despite agreement to do so among the G20 nations – including Canada – at a recent emergency meeting in Washington.
Of course a capitalist goverment has no plan because neither do the capitalists.....
"There is what I believe is somewhat of a perfect storm coming at us," says Liz Wright, practice leader at Watson Wyatt consultancy's Human Capital Group in Toronto.
"We have both recessionary pressures and a talent shortage" that combined, will require a thoughtful approach to instituting cost-saving measures, she says.
The consultancy conducted its annual survey of workplaces in Canada earlier this year to determine companies' preparedness for an economic downturn and workforce preservation.
While the survey won't be released until next month, Ms. Wright says it found 60% of companies surveyed have contingency plans that include layoffs in the event of a recession.
"Some of the top areas they've identified in their plans are organizational restructuring, layoffs, hiring freezes and a slowing rate of salary increases," she says.
However, the survey, titled the 2008-2009 Global Strategic Rewards Report also found more than half of Canadian companies do not effectively undertake workforce planning.
"They don't really understand what their business needs are in terms of the workforce," Ms. Wright says. "Roughly 30% to 40% are conducting an analysis of some sort but the rest aren't."
SEE:
Economics 101
Neo-Cons Have No New Ideas
tags
Canada, Flaherty, politics, Conservatives,unemployment, Alberta, Stelmach, economy, government, Conservatives, Harper, recession, labour shortage, upgrader, Economy,
