Many governments will come to power as such will promise you the world if they get re-elected. The problem is the government can only set polices that support economic growth. So, if a government goes high tax and high regulation then that will impact FDI. Donald Trump is moving the USA to low tax and low regulated environment as compare to Justin Trudeau that is increasing regulation and taxes. Source - http://www.cbc.ca/news/world/trump-tax-reform-bill-approved-in-senate-1.4430019 or http://business.financialpost.com/commodities/energy/ottawas-carbon-tax-plan-to-shrink-economy-by-3-billion-hurt-loonie-in-2018-study

1. GOVERNMENT POLICY –
WAGES AND
EMPLOYMENT - CANADA
BY: PAUL YOUNG CPA, CGA
DATE: DECEMBER 3, 2017

2. PAUL YOUNG - BIO
• CPA, CGA
• Academia (PF1, FA4 and MS2)
• SME – Risk Management
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Internal Controls
• SME – Financial Planning and Analysis
• SME – Business Strategy
• SME – Emerging Technology
• SME – Financial Solutions
• SME – Business Process Change
• SME – Supply Chain Management
Contact information:
Paul_Young_CGA@Hotmail.com

3. SUMMARY
Many governments will come to power as such will promise you the world if they
get re-elected. The problem is the government can only set polices that support
economic growth. So, if a government goes high tax and high regulation then that
will impact FDI.
Donald Trump is moving the USA to low tax and low regulated environment as
compare to Justin Trudeau that is increasing regulation and taxes. Source -
http://www.cbc.ca/news/world/trump-tax-reform-bill-approved-in-senate-
1.4430019 or http://business.financialpost.com/commodities/energy/ottawas-
carbon-tax-plan-to-shrink-economy-by-3-billion-hurt-loonie-in-2018-study

4. AGENDA
• Wage growth year over year analysis
• Wage Growth by year and CPI
• Jobs and Wage Growth
• GDP and Wages
• CPC and Wage Growth
• Blog / Middle Class
• Blog / Minimum Wage
• Blog / Employment
• Blog / GDP

5. AVERAGE WAGES BY SECTOR AND YEAR
Source – Stats Canada

6. WAGE GROWTH BY VS INFLATION
Source – Stats Canada

7. JOBS CREATION AND WAGE GROWTH
Source – Stats Canada

8. TOP 25 JOBS / CANADA
Source - http://www.macleans.ca/work/jobs/top-25-jobs-in-canada/
Ranking Occupancy Average Annual
Salary
1 Public Administration Director $106,662
2 Nurse Practitioner $84,510
3 Mining & Forestry Manager $106,006
4 Pipefitting Supervisor $89,398
5 Utilities Manager $112,320
6 Telecommunications Manager $86,528
7 Real Estate and Financial Manager $103,376
8 Economic Development Director $114,400
9 Lawyer $88,524
10 Elevator Mechanic $83,844
11 Pharmacist $102,398
12 Corporate Sales Manager $85,009
13 Locomotive Engineer $73,340
14 Aerospace Engineer $89,003
15 Specialized Engineer $85,009

9. TOP 25 JOBS / CANADA
Source - http://www.macleans.ca/work/jobs/top-25-jobs-in-canada/
Ranking Occupancy Average Annual
Salary
16 Deck Officer $72,800
17 Business Services Manager $85,508
18 Petroleum & Chemical Process Engineer $104,000
19 Urban Planner $86,320
20 Firefighter $78,936
21 Police Officer $83,990
22 Software Engineer $90,000
23 Pilots & Flying Instructors $76,960
24 Mining & Quarry Supervisor $72,800
25 Construction Manager $79,996

10. HARPER AND WAGE
GROWTH
Source -
http://business.financialpost.com/opin
ion/william-watson-turns-out-the-
harper-government-was-actually-
terrific-for-wage-growth

11. PENSION SPLITTING
Source - https://globalnews.ca/news/3107344/liberals-income-pension-splitting-tax/
The Liberals will not be changing a federal tax break that, according to a recent study, costs
Canadians almost $1 billion annually and benefits almost exclusively the richest households.
The tax measure in question is pension income splitting, which allows for a higher-earning spouse
to shift up to half of their pension income to their spouse. Although the lower-earning person will
pay taxes on the transferred funds, the maneuver helps decrease a family’s overall tax burden.

12. LIBERALS / MIDDLE CLASS
Source - https://www.liberal.ca/trudeau-unveils-liberal-platform-for-a-strong-middle-class/
“Stephen Harper wants us to think
that if it weren’t for him, our economy
would fall apart. But Canada’s
economy doesn’t depend on him. It
depends on Canadians. It depends
on the people I meet all across this
country, every single day,” said Mr.
Trudeau. “People want economic
growth, good jobs, and more money
in their pockets. They want to see
their voices and values represented
in Ottawa. Canadians want a better
government, not just a different one.
It’s time for real change, and that is
exactly what the Liberal plan
provides.”
Liberal 2015
GDP by PM
Wage Growth by Year

13. MILLENNIALS
• Source -
• https://www.thepostmillennial.com/canadas-global-prosperity-ranking-slips-lowest-level-11-years-survey/

14. BLOG #1 – MIDDLE CLASS
• http://www.torontosun.com/2017/10/11/canucks-believe-middle-class-dream-replaced-by-nightmare-poll
• Yet Trudeau said the article is wrong? https://globalnews.ca/news/3769136/taxes-middle-class-liberals/ I hate to tell PM Selfie that Trudeau is wrong. You cannot eliminate tax
credits, income tax splitting, etc. and then expect taxes will go down, because they do not! https://www.slideshare.net/paulyoungcga/did-the-middle-class-cut-truly-help-
canadians . FYI - The child tax benefit did not reduce poverty by 400,000.
• Trudeau so called middle class tax cut did not work - https://globalnews.ca/news/3769136/taxes-middle-class-liberals/. This is before carbon tax is implemented across Canada
2019. The carbon tax will hurt low to middle class more than the wealthy. http://www.cbc.ca/news/canada/saskatoon/australian-carbon-tax-opponent-chris-berg-saskatchewan-
1.3884765
• Yet the PBO office said CPC cuts help low to middle class Canadians. Trudeau again got it wrong about Harper and his policies!!!! https://globalnews.ca/news/1356467/tax-cuts-
since-2005-net-canadians-30b-pbo/.
• In 2014 is when Canada had the best middle class in the world - https://beta.theglobeandmail.com/report-on-business/top-business-stories/canadas-middle-class-now-worlds-
richest-study-suggests/article18090490/?ref=http://www.theglobeandmail.com&
• People complain about corporations and yet they contribute to wealth distribution –
• Harper did not just focus on tax cuts including corporate tax, but also set up innovation funds and sign trade deals to expand exports.
https://www.slideshare.net/paulyoungcga/wealth-distribution-canada-corporate-tax-july-2017. Trudeau was elected and said he will focus on clean technology, right?
https://www.liberal.ca/wp-content/uploads/2015/08/A-new-plan-for-Canadas-environment-and-economy.pdf The problem is clean technology companies are not making money,
right? http://www.bnn.ca/awash-in-red-ink-canadian-clean-tech-struggling-despite-ottawa-s-green-goals-1.729679
• Harper created many innovation funds, sign trade agreements, expanded ports like Montreal, Prince Rupert, etc. Harper was all about getting goods to market. More could
have been done, but pipelines as well as lack of priorities by governments including Ontario on natural resource development set Harper back -
https://www.slideshare.net/paulyoungcga/merchandise-trade-canada-july-2017
• Liberals love to fabricate the facts - https://www.slideshare.net/paulyoungcga/liberal-party-of-canada-election-promises-september-2017. FYI the middle class tax cut was
supposed to be revenue neutral and it was not - http://www.huffingtonpost.ca/2015/12/07/liberals-middle-class-tax-cut-rich_n_8740118.html

15. MINIMUM WAGE
• ] Here are the comments on minimum wage hike:
• http://www.cfib-fcei.ca/english/article/5438-minimum-wage-hikes-not-an-effective-solution-to-poverty-reduction.html
• http://www.occ.ca/Publications/Minimum%20Wage_Web_final.pdf
• Wages - https://www.slideshare.net/paulyoungcga/wages-canada-may-2017
• There other issues facing business, especially hospitality is the business that has the most minimum wage
• CPP Enhancement - http://www.cfib-fcei.ca/english/article/8226-2016-budget-breaks-election-promise-to-small-business.html or
• Hydro Rates - http://www.slideshare.net/paulyoungcga/power-generation-canada
• Rent - http://www.edmonton.ca/business_economy/documents/PDF/KPMG_Tax_Comparison_10_Cities.pdf. Most restaurants are rented
from a property management
• Food Costs – Foods costs including wheat, soya, meat, chicken - http://www.slideshare.net/paulyoungcga/key-market-and-industry-
indicators-for-canada-january-2015 or http://www.theglobeandmail.com/report-on-business/canadas-fruit-vegetable-prices-to-rise-sharply-
in-2015-report/article22758468/. California drought has influence prices for fruits and vegetables.
• Carbon Tax (proposal) – The new carbon tax will forced up everything by 3% like food costs (Delivery charges).
http://www.slideshare.net/paulyoungcga/carbon-tax-canada-and-its-provinces
• Here is a calculation that I did on minimum wage based on weekly earnings (Slide 9 - http://www.slideshare.net/paulyoungcga/alberta-
49372634). Bulk of minimum wage jobs are hospitality and retail.
• Truth about minimum wage - http://www.macleans.ca/economy/money-economy/minimum-wage-in-canada-by-the-numbers/ - 50% of
minimum wage is related to 15-19 age group

16. JOB AND EMPLOYMENT
• http://www.statcan.gc.ca/daily-quotidien/171101/dq171101a-eng.htm
• Canada job market has been very strong for the past 12+ months. However, caution should be used when reviewing the numbers:
• Goods producing areas like construction and natural resources continue to struggle to create jobs. “The Canadian job gains were not only
lower than expected, but the composition of the gains was tilted towards self-employment, which is not necessarily a good thing. The drop-
in construction and the private sector in general is also not good news” – National Bank of Canada -
https://www.nbc.ca/content/dam/bnc/en/rates-and-analysis/economic-analysis/economic-news-jobs.pdf
• There is more movement to self-employment which is never a good sign for an economy. The bad news is that self-employment is being
targeted by Minister of Finance through what is called Income Sprinkling - https://www.slideshare.net/paulyoungcga/tax-policies-small-
business-income-sprinkling-canada-july-2017
• Labor Market since the Liberals took office has seen 440K net new jobs, but has lost 6,000 goods producing jobs. The jobs created are either
government or related to service sector (Retail, logistics, banking, etc.) Many of those jobs are either job churning or part-time.
https://www.slideshare.net/paulyoungcga/employment-canada-september-2017
• Canada also seeing lower job openings which means businesses are now holding back head count. http://www.statcan.gc.ca/daily-
quotidien/171101/dq171101a-eng.htm . The liberals can talk jobs all they want, but the reality is key sectors like goods producing continue
to see slow growth with jobs. It is good producing sector that drives exports!
• Source:
• https://www.nbc.ca/content/dam/bnc/en/rates-and-analysis/economic-analysis/economic-news-jobs.pdf
• https://www.slideshare.net/paulyoungcga/employment-canada-july-2017-78592620

17. BLOG - GDP
• http://globalnews.ca/news/3739447/liberals-deficit-path-bill-
morneau/?utm_source=GlobalNews&utm_medium=Facebook
• I am not surprised with this comment as the Liberals expenses are growing about 2x times faster than the
growth of GDP. Here is my surplus/deficit calculation - https://www.slideshare.net/paulyoungcga/canada-cpc-and-
liberals-surplus-debate. Yet if Harper did the same thing in terms of spending and deficits then the left would
have crucified him. So, why does PM Selfie get a free pass?
• Secondly, the economy is projected to grow at slower rate in 2018 and beyond, why? Federal government is
pushing national carbon tax starting in 2018. The carbon tax will take money out of the economy -
http://business.financialpost.com/commodities/energy/ottawas-carbon-tax-plan-to-shrink-economy-by-3-billion-
hurt-loonie-in-2018-study. The adjustment is small, but it was shave a point or two off GDP. Canada is also
seeing correction in areas like manufacturing, construction, energy and utility sector.
• Thirdly, GDP is project to drop back down to 1.9% to 2.2 range https://www.slideshare.net/paulyoungcga/gdp-
outlook-canada-and-the-world-september-8-2017 - see slide 3 which shows you that Trudeau growth is same
Harper was achieving post 2008-2009 recession.
• Government gets too much credit for an economy. Government has a role which is create policies that support
economic expansion. The Liberals are moving Canada to high tax and high regulation as compare the USA which
is going low tax and low regulation.