Are we in a recession or not?
Let’s take employment as a measurement of our economy’s health. In July, the private sector lost 42,000 jobs and the public sector gained 41,000 jobs.
The “math isn’t mathing” as the kids would say.
Where is the money coming from?
If it takes over $1.00 tax dollar to fund every $1.00 of public wages, you’d expect that private sector employment would be growing faster to fund these public sector wages.
Public servants are earning more.
On top of that, public sector employment compensation and pension benefits have surpassed many private sector employment industries compensation packages.
Terminated employees are finding it difficult to mitigate.
The law of mitigation only requires terminated private sector employees to look for comparable alternative work which for many, and likely most, will not exist in the public sector.
Maybe it’s time for private sector employers to acknowledge that the same factors driving them to reduce staff will leave their departed former employees looking for work for longer too? Are we in economic difficulty in Canada? Yes…yes we are.
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