The latest jobs numbers from Statistics Canada were a good news, bad news situation.
Good news first 鈥� B.C. actually gained 13,000 jobs in May, and while our unemployment rate is up to 6.4 per cent, that's still lower than the Canadian average.
Bad news 鈥� Canadian unemployment rose to seven per cent, and there's been virtually no growth in overall employment since January. Meanwhile, Canada's trade deficit hit a record high in April, as exports to the United States were ground down by the weight of tariffs.
If we're not in a recession yet, we can certainly see it from here.
The federal and provincial governments have launched themselves at the problem, and it's a big one. They're trying to rev up the Canadian economy in spite of the fact that our biggest problem is the behaviour of our biggest trading partner. The tariffs are an issue, but so is their erratic, unpredictable nature. Investors abhor uncertainty, and they'll sit on their money until it goes away, rather than investing it in expanded or new businesses, which create jobs.
While Ottawa, Victoria, and other provincial capitals are talking about big projects, they're also labouring under the weight of debt that was racked up during the COVID years.
Government intervention has to be part of getting our economy moving, but the spending has to be smart.
For years we've had low productivity in Canada. Productivity in some sectors, notably home construction, which has become a huge part of our economy, actually fell, as housing became bigger and more complex.
To build solid, long-term employment, governments need to build infrastructure and projects that will improve productivity. In some cases that means physical infrastructure 鈥� transit, roads, bridges, rail lines, ports, electricity generation.
In other cases it's soft infrastructure, like creating more post-secondary education spaces, like streamlining the ability for highly -educated new Canadians to get jobs in their field, like enhancing retraining programs for laid-off workers in tariff-hit industries.
There is plenty of work to do that will make Canada a better place 鈥� we need more hospitals and schools, water and sewer systems need upgrades, and our power grid could use some work.
But a powerful focus on infrastructure that will enhance productivity is needed now more than ever.
