News Releases and Op-Eds
Finlayson: The growing role of women in the workforce (Troy Media)
The growing role of women in the workforce arguably qualifies as the most consequential socio-economic development of the past fifty years. As more women have entered the formal labour market, the productive capacity of our economy has been augmented. Indeed, increased “labour input” – more people working – has been the principal factor pushing up gross domestic product (GDP) and household incomes in Canada. And women account for a large majority of this increase in “labour input.” A study done last year by the economics team at RBC estimated that the rise in female labour force participation since the early 1980s has boosted Canada’s GDP by more than $130 billion.
Finlayson: Vancouver’s Incomes are Low, But Costs are High (Vancouver Sun)
Spending time in the downtown Vancouver business district or in the tonier residential neighbourhoods scattered across the lower mainland can easily foster a misleading impression of the financial health of the households that comprise the region. That point was hammered home for me recently after reviewing the latest Statistics Canada data on incomes.
Finlayson: US may be poised for economic housing boost (Troy Media)
Is it possible that America’s economy might surprise us with a sustained growth surge? The question came to mind as I recently slogged through a series of blog entries and reports on the web site of the Harvard Joint Center for Housing Studies. The Center’s researchers keep close tabs on U.S. housing markets and have a particular interest in the factors believed to influence the demand for housing.
Finlayson: BC must up its productivity game (Troy Media)
A fundamental long-term challenge facing British Columbia is to improve upon the province’s lackluster productivity record. B.C. trails the national benchmark on overall business sector productivity by around 10%. In 2012, BC ranked sixth among the ten provinces in the level of productivity. Moreover, the province has had very limited success in boosting productivity since the 1980s. This is a worrisome trend, since higher productivity will be essential to raising real incomes and living standards as the growth of the workforce slows due to the effects of an aging population. In the end there are really only two ways to expand the “economic pie”: i) higher productivity, and/or ii) greater “labour input” – i.e., more people working. The size of the workforce is limited by underlying demographic patterns, whereas in theory there is no limit to future productivity growth.
Business Council of British Columbia statement regarding the Tsilhqot'in Nation v. British Columbia Supreme Court decision (The Roger William's Case)
Greg D’Avignon, President and Chief Executive Officer of the Business Council of British Columbia issues the following statement in response to today’s Supreme Court of Canada decision in the Tsilhqot’in Nation case against the Province of British Columbia
Finlayson: The New Canadian Pecking Order (Troy Media)
Canada’s economic pecking order is changing, at a pace that raises questions about the country’s economic future as well as the sustainability of current federal-provincial fiscal arrangements. The picture is summarized in the accompanying table. It shows where the six most affluent provinces rank on three common economic metrics: output or real gross domestic product (GDP) per person; average weekly earnings for people holding payroll jobs; and labour productivity in the business sector. Note that the data for the four bottom ranked provinces – Manitoba, Nova Scotia, New Brunswick, and PEI – are not reported in the table.
D'Avignon: Livelihoods, lifestyle depend on stable supply of industrial land (Vancouver Sun)
Economic forecasters predict an additional million people will live in the Metro Vancouver region by 2040. That’s a population 40 per cent larger than today, and the people will all need housing, goods, retail and other services as well as government-funded services such as education and health care.
Population growth means we need to plan now to have the investment, resulting jobs and infrastructure to support these additional families and enable the region’s economy to grow and generate the revenues required to pay for publicly funded services.
One key challenge is to institute better planning and co-ordinated action to support the efficient movement of goods important to our daily lives, as well as to the foreign customers to whom B.C. and other western Canadian provinces export resources and other products through the Greater Vancouver Gateway.
Finlayson: Rebound in global trade augurs well for B.C.'s economy (Troy Media)
Economic growth has been tepid in B.C. in the past two years, with inflation-adjusted gross domestic product (GDP) eking out an average annual gain of barely 1.5 per cent. But the picture should brighten over 2014-15, as consumer spending strengthens, some momentum returns to the job market, and the province’s export shipments continue to expand.
The latter factor – stronger export growth – will be particularly important in creating a more positive economic environment. According to the latest forecast from the World Trade Organization (WTO), the volume of global trade is on track to increase by 4.7 per cent this year, followed by a 5.3 per cent jump in 2015. This represents a significant turnaround from the sluggish 2.2 per cent annual pace recorded during 2012-13. It’s also good news for the thousands of B.C. companies involved in selling various goods and services to foreign customers.
News Release: Business Council appoints prominent business leader, Jonathan Whitworth, CEO of Seaspan ULC, as Chair for a two-year term
April 17 (Vancouver, BC) - The Business Council of British Columbia is pleased to announce the appointment of Jonathan Whitworth, Chief Executive Officer of Seaspan ULC, as the new Chair of the Business Council for a two-year term. Mr. Whitworth replaces Hank Ketcham, Executive Chairman at West Fraser Timber who will become the immediate past chair of the Business Council.
Statement from the Business Council of British Columbia on the passing of Former Finance Minister Jim Flaherty
The Business Council of British Columbia is saddened to learn of the death of former Finance Minister Jim Flaherty.
“Mr. Flaherty was a dedicated public servant and man of character who gave of himself and his family to Canadians through public office, including over 8 years as the country’s Minister of Finance,” said Greg D’Avignon, President and Chief Executive Officer of the Business Council of British Columbia. “He was a leader not only in Canada, but internationally among his counterparts, and his contributions to our country have ensured a more prosperous future for our country today and years to come.”
Finlayson: Higher minimum wages not the best answer to reducing poverty (Troy Media and The Province)
Proposals to boost the minimum wage have been drawing attention on both sides of the Canada-U.S. border.
In January, U.S. President Barack Obama called for lifting the U.S. federal minimum wage to $10.10 an hour. Since 2011, several American states and cities have increased minimum wages in their jurisdictions.
In Canada, four provinces are raising their minimum wages in 2014 — Ontario, Quebec, Nova Scotia and Newfoundland. Ontario is taking the biggest step, hiking the minimum wage to $11 an hour and indexing it to the Consumer Price Index going forward.
Are higher statutory minimum wages an effective way to improve the economic well-being of low- to moderate-income workers and families? Will some businesses respond to escalating minimum wages by shedding jobs? These questions have been extensively studied by academic economists in the past decade. Overall, the research yields mixed results.
Finlayson: Return to PST has hurt BC's competitiveness (Vancouver Sun)
April 1 marks the one-year anniversary of the return of the Provincial Sales Tax following B.C. voters’ decision in 2012 to scrap the Harmonized Sales Tax. It is a good time to reflect on the province’s competitive position in a world where many jurisdictions are aggressively seeking to attract private sector investment and the jobs and economic activity that come with it.
There can be no doubt switching back to the PST altered the business landscape in a way that left the province at a competitive disadvantage. That’s why virtually all economists supported the HST. The situation varies by sector, and not all industries have been hurt by restoring the PST. But most have been.
D'Avignon: British Columbians support resource exports (Vancouver Sun)
British Columbians, as well as potential investors, are too frequently confronted by headlines declaring B.C., and Metro Vancouver more specifically, are paralyzed by conflict over natural resource exports with supposedly profound opposition to development among a majority of citizens.
Is this really the case?
News Release: Business Council of British Columbia points to benefits of Canada-Korea Free Trade Agreement
March 10, 2014 (Vancouver, BC) - The Business Council of British Columbia today welcomed the Government of Canada’s announcement that negotiations to establish a bilateral free trade agreement with South Korea have been successfully concluded.
“The federal government has worked long and hard to secure a free trade agreement with South Korea,” said Greg D'Avignon, President and CEO of the Business Council of British Columbia. “We applaud the Prime Minister, International Trade Minister Fast and his senior officials for their efforts to get this significant agreement over the finish line.”
BC Needs to Encourage Small Businesses to Grow
Jock Finlayson's article, BC Needs to Encourage Small Businesses to Grow was published in this month's Chartered Professional Accountants of British Columbia publication CPABC in Focus.
News Release: Business Council applauds budget for providing sound fiscal framework - Global competitiveness requires greater focus on skills training, efficient regulatory processes and effective tax structures
February 18, 2014 (Victoria, BC) – The Business Council of British Columbia applauds today’s provincial budget in which the government delivered on the commitment to keep the operating budget balanced and to manage the overall provincial debt, preserving BC’s Triple A credit rating.
“As the province moves into surplus and focuses on realizing new economic opportunities, there will need to be definitive action taken to ensure both new development opportunities and ongoing business operations are more competitive,” said Greg D’Avignon, President and CEO of the Business Council of British Columbia. “This focus on competitiveness will need to encompass infrastructure, human resources, regulatory systems and taxation policies that enable success in a highly competitive world.”
Finlayson: Three external developments that could affect Canada's economy
For Canada, what happens beyond our borders is often more important to our economic prospects than what transpires at home. With that in mind, here are three things that Canadian forecasters and market analysts will be carefully tracking in 2014.
- U.S. monetary policy: the end of quantitative easing
- Europe returns to growth
- Japan struggles to revive its economic engine
Finlayson: The over-qualification equation: higher education, fewer jobs
(Business in Vancouver)
Statistics Canada’s latest Labour Force Survey points to a softening in the job market. Across many advanced economies, employment has been slow to recover from the punishing blow delivered by the 2008-09 recession, with young adults in particular shouldering much of the burden.
Canada has done better than most, but even its youth unemployment rate still hovers near 14%, double the overall rate. Many young adults are finding the search for gainful employment tough sledding.
Finlayson: Labour shortages not about a shortage of workers (Troy Media)
An odd feature of today’s economy is the juxtaposition of widespread concerns about talent and labour shortages together with evidence that the incomes of many workers are under downward pressure. While CEOs, human resource managers, and business gurus proclaim that recruiting, retaining and motivating skilled employees is key to their organizations’ success, a sizable body of economic data presents a somewhat different picture – one of predominantly stagnant real (inflation-adjusted) earnings for a significant fraction of the workforce.
News Release: BC's Economy and Job Market to Gain Momentum over 2014-2015
Broadly-based gains across many segments support growth in 2014,
LNG and related activity to fuel stronger growth in 2015
The Business Council of British Columbia today released its semi-annual BC Economic Review and Outlook publication for 2014, noting that it expects economic conditions to improve over the next two years. This year, the Council forecasts that real (inflation-adjusted) gross domestic product (GDP) in BC will increase by 2.3%, a notable improvement from the 2013’s estimated 1.4% expansion. In 2015, BC’s economy should accelerate further, with real GDP growing by more than 3%.