Jul. 10, 2020

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.

TIDBITS

  • 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.