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September 19, 2022 | Canada’s Private Sector on the Decline

Martin Armstrong

Martin Arthur Armstrong is current chairman and founder of Armstrong Economics. He is best known for his economic predictions based on the Economic Confidence Model, which he developed.

Canada’s job recovery last year seemed strong according to standard measures. However, it was recently revealed that the majority of jobs were created in the public sector. Nearly 9 in 10 jobs created between 2020 and 2021 were in the public sector. Government, not business, is expanding. Between February 2020 and July 2022, private sector growth remained relatively stagnant after posting just a 0.4% increase. The public sector, on the other hand, rose 9.4% in that same period.

So out of the 366,800 jobs added to the economy during the pandemic, only 56,100 were jobs in the private sector. This is not good for Canada’s long-term growth. The private sector has declined from 49.3% to 48.2%, meaning the government is providing jobs for most of the population.

Three million Canadians lost their livelihoods during the pandemic, a 16% contraction, pushing the unemployment rate to 13% from 5.7%. Then the government decided to reopen slowly, very slowly, and brought the majority of the population under their control. You must adhere to all of Trudeau’s mandates as a government employee. The taxpayers help to partially fund these positions and governments cannot manage a bubble gum machine, let alone the livelihoods of the masses.

Statistics Canada recorded a 5.4% unemployment rate for August, an increase from July’s 4.9% posting. Yet, business is not growing. The government now composes a disproportionate number of jobs, and this completely alters the trajectory of the Canadian economy.

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September 19th, 2022

Posted In: Armstrong Economics

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