The latest jobs numbers from Statistics Canada were a good news, bad news situation.
Good news: B.C. gained 13,000 jobs in May, and while our unemployment rate is up to 6.4 per cent, that's lower than the Canadian average.
Bad news: Canadian unemployment rose to seven per cent, and there's been virtually no growth in jobs since January. Meanwhile, Canada's trade deficit hit a record high in April. A recession may be on the horizon.
The federal and provincial governments have launched themselves at the problem. 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, as is their erratic, unpredictable nature. Investors abhor uncertainty, and they'll sit on their money until it goes away, which does nothing to create jobs.
For years we've had low productivity in Canada. In home construction, which has become a huge part of our economy, productivity has actually fallen over the years.
To build solid, long-term employment, we need infrastructure that will improve productivity. In some cases that means physical infrastructure – transit, roads, bridges, rail lines, ports, electricity generation.
In other cases it's soft infrastructure, like more post-secondary education spaces, streamlining the ability for highly-educated new Canadians to get jobs in their field, and 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 – we need more hospitals and schools, water and sewer systems need upgrades, and our power grid could use some work.
A powerful focus on infrastructure that will enhance productivity is needed now more than ever.
