From Friday’s Globe and Mail
Published Thursday, Nov. 24, 2011 11:37AM EST
Last updated Thursday, Nov. 24, 2011 10:31PM EST
With global economy plummeting amid fears of double dip, Canadian economy struggles to find balance. While the inflation rate continues to surge, households are experiencing difficulties in dealing with unusually high energy and food costs. The weak job market makes it difficult for workers to demand pay raises, decreasing real value of their wages and further contribute to freezing consumer spending.
Average weekly earnings are high in Alberta and Saskatchewan; powered by global potash and oil market. Other drivers of economy include retail and construction sectors as well. On the other hand, Ontario, the former manufacturing powerhouse of Canadian economy, is losing ground against jurisdictions all over North America in term of per capita economic output. The decline in factory sector caused the employment rate to fall to the lowest on record. Ontario is indicative of sagging consumer spending which accounts for half of Canada’s economy. Consequently, Canada is being divided into have and have-not regions. It is imperative for the government to address 7.3 per cent unemployment rate and find balance between these regions.
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