The federal government convened 200 leaders from the public and private sectors at Hotel Bonaventure in Montréal this month to share ideas on strengthening the country’s workforce.
Driving the news: Provincial labour ministers, who are responsible for developing the workforce, boycotted the event because they weren’t consulted during the planning process. More than a dozen business and labour groups echoed similar concerns in a joint statement.
- Tensions are high after a $625 million cut to federal transfer payments, which are financed through Employment Insurance and help provinces pay for skills training.
Why it matters: Canada lags in terms of labour productivity, measured as the country’s economic output per hour worked, compared to its peers. Experts have been sounding the alarm on falling productivity’s negative impact on the job market and employee wages.
- According to the Bank of Canada, productivity in 2022 fell to 71% of the value generated by the U.S. economy for every hour worked, down from 88% in 1984.
Bottom line: Attendees told The Peak the event stressed the importance of collaboration, but it’s hard to imagine a world where all levels of government, workers, and employers can address labour market needs if they can’t even make it into the same conference room.—SB