Many government to get elected make promises as part of their election campaign. Once in office it then becomes incumbent on the ruling party to implement policies that support their mandate Liberal Party of Canada campaign was about expanding the middle class. This presentation will focus on wages and employment since the Liberal Party took office November 1, 2015

1. Liberal Party of Canada –
Employment and Labor Market
– Analysis of Middle Class
Mandate (Too Grow the Middle
Class)
PaulYoung CPA, CGA
Date: June 4, 2017

2. PaulYoung - Bio
• CPA, CGA
• Financial Solutions
• SME – Risk Management
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Financial Solutions
• SME – SupplyChain Management
Contact information:
Paul_Young_CGA@Hotmail.com

3. Overview
▪ Many government to get elected make promises as part of their
election campaign. Once in office it then becomes incumbent on the
ruling party to implement policies that support their mandate
▪ Liberal Party of Canada campaign was about expanding the middle
class.This presentation will focus on wages and employment since
the Liberal Party took office November 1, 2015

4. Change in Employment – October 2015 vs April
2017
Source – Stats Canada Daily
Summary
• GDP has been growing but
not through head count
additions to goods producing
sector
• Many companies in goods
producing sector have not
raise their headcount
• Service sector experience
296K net new jobs, but many
of those jobs are part-time
and/or precarious
• Canada has averaging about
12K new jobs per month

5. Wages October 2015 vs March 2017
▪ Stats Canada
Summary
• Wages are not keeping pace with
inflation
• Liberals reduced the taxes by 1.5% for
income from $45,916 to 91,831
• People below 45,916 will see no cut to
their taxes, but will see hikes to EI and
CPP over the next few years
• Liberals eliminated boutique tax
credits like textbooks, fitness and
transit.Those tax credits save people
making $45,916 and above money.
• Liberals tax cut which save people
money is now being offset by
removal tax credits

6. Tax Brackets
2015 2017

7. Minister of Finance / Job Churning
http://www.metronews.ca/views/winnipeg/urban-compass/2016/10/24/finance-minister-bill-morneau-does-not-understand-job-churn.html
Last week in Niagara Falls, Bill
Morneau said that Canadians should
get used to “job churn” or moving from
"job to job to job." No doubt Morneau
is up on such employment trends,
after all he only resigned as the
executive chair of Canada's largest
human resource company Morneau
Shepell last year.
Metro News – October 24, 2016

8. MP / Brampton - East
https://openparliament.ca/debates/2017/5/9/michelle-rempel-
2/
• 2008-2009 there was money invested
infrastructure as part of stimulus plan.The
Liberals forced the stimulus plan
• CPC established both GasTax and Build
Canada funds to provide dedicated funding to
infrastructure
• All levels of governments need to be involved
with funding of infrastructure. Municipal
government are struggling with funding due to
issues like arbitration, downloading services
and higher public safety costs
• Many pension fund require 8%+ return.Transit
projects have operational grants that would
need to be bump up to support ROI require by
Pension Funds
• Small business is under tax as liberal are hiking
payroll taxes and introducing carbon tax
• Harper invested in key ports like Montreal,
Prince Rupert, etc.

9. Summary
▪ Canada’s economy have generated over 217K net new jobs since Liberals took office, but many of
those jobs are part-time and/or in the service sector
▪ Canada GDP has grown over the past year primarily through higher commodity prices like oil as
well as an overheated housing market
▪ Liberals did make a tax cut, but also eliminated tax credits as well as plans to hike CPP and EI
rates have ate into any savings
▪ Liberals in 2017 eliminated the transit tax credit.The transit tax credit benefited all groups
including middle class.The elimination of transit credit will mean higher taxes for the middle
class.The average savings per year is about $450-$600.
▪ Goods producing sector continues to struggle with many issues from hydro rates (provincial
matter) to CarbonTax to higher payroll taxes to sluggish growth around the world
▪ Infrastructure money has been slow to flow through the economy
▪ People need to asked themselves are you better off today than you were back in 2015
▪ Liberals said they would focus on getting goods to market.Yet there have been delays in key
pipelines as well as other infrastructure investment that would support expansion of exports.