Employment issues, the Budget and economic recovery

Last week, just before the government’s presentation of Budget 2010, the Alternative Federal Budget (AFB), a project coordinated by the Canadian Centre for Policy Alternatives (CCPA), released their Alternative Federal Budget 2010. Employment issues topped their list of priorities. Employment also topped the priority list of Budget 2010. Let’s see how they compare!

Over 480,000 full time jobs were lost during the recession driving the unemployment rate up and forcing more Canadians to seek assistance from government programs, like Employment Insurance (EI) and social assistance. And if this post-recession period is anything like those from previous decades, it could take years for the employment rate to drop to pre-recession levels unless directed action is taken.

The benefits for many Canadians who qualified for EI in the past year (about only 51 per cent of the unemployed) are about to expire because there are not enough new jobs available. AFB proposes that the EI system be recalibrated to deal with the present circumstances caused by the recession.

Budget 2010 invests more money in EI, continuing with extensions in certain circumstances that were presented in 2009. But these extensions are only five extra weeks. With so many jobs lost, and not enough new jobs being created, it can be expected that many already on EI will lose their benefits before finding another job.

In the last half year, some new jobs have been created. But many of these new jobs are part-time or temporary, with low pay and no benefits. AFB proposes that economic stimulus needs to continue investing in the creation of new permanent jobs, especially in sectors hit hardest such as manufacturing.

Budget 2010, in continuing the stimulus package of 2009, plans to meet the goal of creating 220,000 new jobs. But this only accounts for half of the jobs lost during the recession, and most of the jobs created so far are part-time.

Finally, AFB proposes that some of the investment in new jobs focus on widening emerging sectors, such as the green sector. With so many unemployed and in need of full-time work, coupled with the need to tackle environmental concerns, now is a great time to invest in green jobs and set an example for the rest of the world.

Budget 2010 announced several new investments in environmental protection, including just under $200 million. It was not clear how much will go towards green jobs, but much of it will go toward new green technologies, which will lead to jobs.

In terms of new investment in green jobs, Budget 2010 looks promising. But it looks like Budget 2010 will not do much to help the thousands of Canadians without full time work, or who are about to lose their EI benefits.