Canadian Workers Need Less Regulation, More Capital

Published in the Financial Post As trade tensions with the United States escalate, putting tens of thousands of Canadian jobs at risk, our home-grown productivity problem continues to erode the country’s economic strength. Without a change of strategy, Canada faces stagnating wages, declining competitiveness, slowing GDP growth and eroding living standards. Our recent labour market review for […]

US Demand Supports Many Canadian Jobs

According to the latest available data, many Canadian industries rely heavily on US demand, with resource-based sectors being the most exposed. In 2022, nearly half of forestry and logging jobs (49.3 percent) depended on the US market, followed closely by fishing and hunting (41.4 percent), mining and oil and gas extraction (41.0 percent), and manufacturing […]

The Erosion of Natural Capital and Declining Productivity Growth

From: Christina Caron and Glen HodgsonTo: Economy observersDate: March 11, 2025Re: The Erosion of Natural Capital and Declining Productivity Growth As we discussed yesterday, labour productivity and multifactor productivity (MFP) growth rates have been declining in advanced economies for several decades, and the decline in labour productivity growth has now extended to emerging economies. While […]

2024 Labour Market Review: Challenges, Trends, and Policy Solutions for Canada

Study in Brief In 2024, Canada’s labour market showed modest growth, with job creation continuing but lagging rapid population growth. This led to an increase in the unemployment rate, reflecting a mismatch between labour force expansion and job creation rather than a decline in sector-specific labour shortages. Ongoing challenges persist, such as declining labour productivity, […]

Job Creation Falls Behind Rapid Population Growth

March 11, 2025 – Canada’s labour market faces mounting pressures that cannot be fixed merely by adding more workers, according to a new report from the C.D. Howe Institute. In the inaugural “2024 Labour Market Review: Challenges, Trends, and Policy Solutions for Canada,” authors Parisa Mahboubi and Tingting Zhang find that the rising unemployment rate […]

Canada-US Trade Supports Millions of Jobs

The total number of Canadian jobs tied to our exports to the US has grown over time, except during the 2008 financial crisis and the COVID-19 pandemic – though in both instances they rebounded quickly. While American jobs supported by US exports to Canada have declined slightly since 2014, they still total around 1.4 million. […]

Surging Federal Workforce, Steady Wage Growth

The number of federal government employees grew sharply from 340,000 in 2014/15 to nearly 440,000 in the most recent fiscal year. The rise in wages and salaries has grown at an average annual rate of 2.8 percent over the same period – a figure that, while more modest, surpasses the average annual rate of inflation […]

Stop Assuming Immigration Will Solve Canada’s Labour Crisis

February 25, 2025 – Canada’s expansive immigration policy from 2016 to 2024 has expanded the labour force but has also increased demand for goods, services, and infrastructure, more likely sustaining or even increasing overall labour shortages rather than easing them, according to a new report from the C.D. Howe Institute. In “The Immigration Paradox: How […]

The Immigration Paradox: How an Influx of Newcomers Has Led to Labour Shortages

Study in Brief This study investigates the effects of Canada’s expansive immigration policy, implemented between 2016 and 2024, on labour shortages. It explores how the influx of permanent and temporary immigrants has affected the balance between labour supply and demand, with attention to whether the policy has met one of its key objectives – alleviating […]

Please Stabilize the Automatic Stabilizer, Employment Insurance

From: Jennifer RobsonTo: The Minister of Employment, Workforce Development and LabourDate: February 13, 2025Re: Please stabilize the automatic stabilizer, Employment Insurance At the time of writing, outside of steel and aluminium, Canada may have some temporary reprieve from the threat of Donald Trump’s tariffs. But that could all change before this even goes to print. […]

The Growing Data Gap on Canada’s Temporary Resident Workforce

Study in Brief Statistics Canada’s Labour Force Survey (LFS) underestimates the rapidly growing non-permanent resident (NPR) population. This undercount potentially distorts important economic indicators, such as nominal wage growth and unemployment rates, because NPRs disproportionately influence these measures as a growing share of new labour market entrants. To address this data gap, this E-Brief recommends […]

Beyond the Unemployment Rate

Man in hard hat and overalls working at a machine in a factory.Although the year-over-year rise in the unemployment rate suggests a weakening Canadian labour market, the reality is that Canada has a dynamic and robust labour market characterized by extraordinary labour force growth and steady employment gains.

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