Economic Fact Check

Contrary to what our self-described economist Prime Minister would have us believe, the jobs that are being created in Canada today are but a pale echo of what once existed. Responding to a January report about the creation of 29,000 new jobs, Star readers have this to say:

Jump in jobs eases economy fears, Feb. 8

The article begins by saying “the labour market started 2014 with a bang adding 29,400 jobs,” presenting a positive tone regarding unemployment. This is misleading. From 2004 to 2008, according to Statistic Canada, nearly 350,000 well-paying manufacturing jobs disappeared, to be replaced by a number of service jobs that paid minimum wage or less. Every sector was hit: the automotive industry, auto parts manufacturing, textile product mills, all industries related to wood and paper. Along with these jobs went the unions, and suddenly we were seeing the rise of food banks.

By 2010, manufacturing employment had fallen by an additional 375,000 workers. All courtesy of free trade agreements that allowed companies to leave Canada for cheap-labour countries.

Then there were other job losses: Sears, 1,600 jobs gone; public sector workers: 20,000; and major Canadian banks, in the thousands. The construction industry in northern Alberta, which generates the best paying jobs in the country, has been laying off workers and replacing them with temporary foreign workers earning as little as half the prevailing wage.

“They called the guys (Canadian workers) into an office, told them that they were gone, and they literally walked past the replacements on the way out,” Alberta Federation of Labour Gil McGowan said.

Job losses over the past 10 years add up to well over a million. The number of jobs listed in the article, 29,400, doesn't even wipe out the job losses of the month previous, 49,500.

And it does nothing about the million jobs already lost.

Bert Deveaux, Toronto

Finance Minister Jim Flaherty should have chosen ballet slippers instead of steel-toed shoes the way he dances around the reality Canada is rapidly becoming a part-time economy. Will that be fries with your budget, Sir?

Richard Kadziewicz, Scarborough

No doubt these facts will be viewed as just a tiny challenge to the Harper propaganda machine.

The Harper Legacy: Empty Mantras And Empty Ideology

I hope readers don't think I have grown lazy or burnt-out when I reprint letters from The Toronto Star. It is just that their observations and ideas are frequently so nicely expressed that I think they merit some exposure in the blogosphere.

Today's offers a sharp rebuke to the tired Tory ideology of low corporate taxes as the path to prosperity, a mantra that has been repeatedly shown to be as devoid of value as the head of their leader and our Prime Minister is devoid of ideas and vision.

Re: Canada hit by unexpected rise in jobless rate, Jan. 10

When asked about the December job losses, Finance Minister Jim Flaherty lamely trots out his usual PMO-approved talking point that we must “keep taxes low to create the environment where job creation can flourish.” Translation: Slash government.

Not just hogwash, sir — stale hogwash!

Taxes are already low enough. It is the continual bleeding by mass employers that drive these kinds of losses, like plant closures announced by Kellogg in London, Heinz at Leamington, CCL Industries in Penetanguishine and others that have already occurred over the past several years, including the steel industry. True, many closures are in Ontario, but that’s because that province traditionally formed our industrial heartland.

Indeed, some jobs are lost because of technology but the majority are because U.S. head offices are taking jobs back to the U.S. or other firms are moving to low-wage countries that Canadians can never compete with, with labour rates as low as $1 a day, such as the garment industry.

If the Conservative government in Ottawa is serious about job creation, it will formulate and actively promote an industrial strategy for Canada, one that goes beyond the Alberta tar sands and the oil industry. Elsewhere, tinkering with a few high-tech projects may create a relative handful of well-paying work but not the thousands of jobs and steady wages that industry can provide.

The Tories demonstrated that they knew this sort of thing could work when they pumped life-saving public funding into GM of Canada and Chrysler Canada when those two industrial titans were threatened with bankruptcy. It’s that or reverse course on slashing government, the only other mass employment sector we have left.

In the end, it seems the Harper government is rendered impotent on jobs creation by its own narrow-minded ideology based on fantasy and blind to the reality of our preventable national decline.

Brad Savage, Scarborough

Outsource Canada

I'm not sure who is actually responsible for breaking down these outsourcing statistics according to province and company, but we certainly owe him or her a real debt of gratitude.