CANADIAN JUNE EMPLOYMENT DATA
- Canada added 953,000 jobs in June vs 700,000 expected (488,000 full-time & 465,000 part-time).
- Unemployment rate 12.3% vs 13.7% in May
- 400,000 fewer people were working from home in June vs May
- Alberta added 92,000 jobs; unemployment rate stays at 15.5%.
- Edmonton lost 8,000 jobs; unemployment rate 15.7% vs 13.6% in May
- Calgary lost 14,300 jobs; unemployment rate 15.6% vs 13.4% in May
- Ontario added 378,000 jobs in June; unemployment rate 12.2% vs 13.6% in May.
CANADA FISCAL UPDATE
- 2020 Budget deficit projected at $343 billion because of the response to the COVID-19 pandemic
- 6x higher that the record set in 2009-10
- Represents 15.1% of GDP
- Cost of CERB $82.3 Billion
- Federal Debt to GDP 49.1% vs peak of 66.8% in 1995-1996
- How can we afford this debt…current interest rates are very low.
- Government of Canada can borrow money for 10 years at 0.53% vs 7.93% in 1995
- Government of Canada can borrow money for 30 years at 1.06% vs 8.22% in 1995
ALBERTA OFFERS INCENTIVES TO PETROCHEMICAL COMPANIES
- Alberta announced a new 10-year, billion-dollar program.
- Awards grants to companies who build new petrochemical facilities.
- Petrochemical sector is fed by natural gas, methane, propane and ethane. It accounts for approximate 33% of Alberta’s manufacturing exports.
- Petrochemicals are necessary to produce many synthetic products, the most familiar is plastics.
- Canada ranks 17th in global proven natural gas reserve, was the 4th largest producer and 6th largest exporter of natural gas in 2018, 69% of which came from Alberta.
- 3% of US adults have moved either temporarily or permanently and 6% say someone has moved into their home because of COVID-19.
- In total, 1 in 5 adults moved themselves, had someone move into their home or knew someone who did.
- Nearly 10% of Americans age 18-29 moved because of the pandemic.
- US withdrawal from the WHO will take effect July 2021.
- US has said the foreign students must leave the United States if their classes are fully online, their option is to transfer to a school offering in-person instruction.
- Fujitsu, one of Japan’s largest employers is cutting office space by 50% over the next 3 years, encouraging 80,000 office works to work from home termed a “Work Life Shift for the new normal”.
- China is now taxing its citizens living abroad on worldwide income, similar to the US tax system.