Majority of new jobs are public sector, so Tory ‘slash-and-burn’ of public sector may cut short economic recovery

The report in the Toronto Globe and Mail today about ‘Corporate Canada hiring on the cheap’ (different title to the online version) highlights an interesting contradiction for Stephen Harper’s Tories.

The majority of 192,000 jobs created so far this year, at ‘a faster pace than in 2010 and an illustration of the Canadian recovery’s strength compared with other Group of Seven nations’ (http://tinyurl.com/3nxnjol), are in the public sector.

The article also points out caution on the part of cash-rich corporations, which means relying on public sector workers to provide the ‘stimulus’ for consumption. Since we do live in a consumption-driven economy, this becomes an important factor in thinking about what will happen to an economy where the one group of workers with decent wages and pensions are about to be hit hard.

Thus, Conservative plans to engage in a Scott-Walker-style cut of public sector workers, one which was not discussed during the last election, may jeopardize Canada’s economic recovery (and leading position amongst the G-7).

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Filed under Cutbacks, Democracy, Economics, Elections, News, Parliament, Pensions, Politics, Public Sector, Wages, Work and working conditions, Youth

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