Public Values

Investing in public infrastructure will create more jobs than corporate tax cuts

High unemployment rates expected to remain steady as Conservatives prepare to cut infrastructure and health care spending.

Georgetti calls for long term investments in public infrastructure and improved public services.OTTAWA, ON, April 7, 2011: Those who claim that the Canadian job market has recovered to pre-recession conditions have not done their homework, says Ken Georgetti, President of the Canadian Labour Congress (CLC).

Georgetti was commenting on the release by the CLC's research department of a publication called Recession Watch Bulletin. The number of full time jobs has fallen by 101,600 since 2008, while the number of part-time workers has increased by 156,100. "We are not back to where we were before the recession struck in October 2008," Georgetti says. "Most people want full-time and permanent work but they are stuck in part-time and poorly paid jobs."

  The government's budget documents predict that the unemployment rate will remain at or above 7 percent until 2014.

The Bulletin indicates that since 2008, the size of the labour force has grown more quickly than job creation. The unemployment rate was 6.2 percent in October 2008 but was 7.8 percent in February 2011. The government's budget documents predict that the rate will remain at or above 7 percent until 2014.

Georgetti says that most of the jobs created since the recession that bottomed out in July 2009 resulted from the government's infrastructure investments. "The jobs were concentrated in construction, in professional services such as architecture and engineering to support that construction, and in health care."

He adds that he is worried about what will happen now. "Ottawa wants to shut down its spending on infrastructure and there is real concern about what the government will be prepared to invest in health care when the accord with the provinces and territories expires in 2014."

Georgetti continues to call for long term investments in public infrastructure, as well as improved public services such as child and elder care. "These investments will create many more jobs for each dollar spent than corporate tax cuts."

Related individuals, organizations and significant events
Recession Watch Bulletin

Links and sources
  Canadian jobs created by infrastructure investments: CLC president worries government pullback will weaken economy

Posted: April 08, 2011

  Public services

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