It is no longer a secret for anyone: Canada's labour market is stalled. Just recently, Statistics Canada reported a loss of more than 100 000 private sector jobs in August.
Panicking, the Conservatives announced last week an Employment Insurance (EI) premium rate's reduction capped at 2250$ for businesses whose total contributions don't exceed $15,000. This measure will indeed lower operational costs for these small businesses. But how exactly will it stimulate job creation? In fact, quite to the contrary, this policy is bound to have the opposite effect. Given that all businesses exceeding the $15,000 premiums cap would suddenly be faced with heavier taxes, they will actually be encouraged to fire people! Economists everywhere are coming up with the same conclusion: "...the proposed 'Small Business Job Credit' has major structural flaws that, in many cases, give firms an incentive to fire workers and cut salaries." (Mike Moffatt, Mowat Centre)
For many years, the Liberal Party of Canada has denounced this government's failed economic record. In response to the growing employment woes of our country, our leader Mr. Trudeau suggested that "all new jobs should effectively be exempt from EI premiums in 2015 and 2016". This plan would save an employer up to $1,279.15 for each job he creates, which could stimulate up to 176,000 new jobs. Now that's a simple and effective way to stimulate job creation in this country. Not surprisingly, it was also the number one demand of the Canadian Federation of Independent Businesses (CFIB) in 2011 in order to recoup the jobs lost in 2008-2009. That's the type of thing you can remember when you listen to Canadians.
The Liberal Party of Canada believes that government must not only create favorable conditions for economic growth, but also insure sustainable growth to relieve the pressure on middle class families.