Canada Losses in Jobs Indicate Stimulus Need

Jim Flaherty, the Canadian Finance Minister, said last Friday that their data which shows the one hundred and twenty nine thousand job loss in Canada for January alone shows that there is a need for some economic stimulus plan to take into effect coming from the financial budget. Because of this, he has been constantly urging the Parliament to get on with passing the bill a lot quicker. Flaherty states that this is simply the first step and that if they will need to do more than this, they will. This was in relation to the forty billion Canadian dollar package as a stimulus measure spread out for the next two years.

Speed Up the Legislative Process to Address the Problem

In a speech in Toronto, Jim Flaherty said to reporters that he was working day and night to get the speed on quicker in terms of the legislative process that will get the budget bill passed on a lot quicker. Their country is currently suffering from alarming job losses on a monthly basis since January. As of late, the employment rate has climbed up to seven point two percent from the six point six percent that had occurred last December.

These losses had been wiped out single handedly the entire net employment that was gained in the previous year of 2008. In fact, these figures are actually a whole lot bigger than any had ever seen in recent times, and has thus raised a lot of fears that such a thing as this recession will end up being even deeper and a lot more protracted than what the policy makers had earlier predicted.

More Doom and Gloom, No Quick Band-Aid Measures

Jim Flaherty also acknowledges the fact that at late, there are no quick fixes for their economy. He adds that there will also be more job losses as well as even worse economic data in the coming weeks. He maintains that the country must not be blind to these truths and accept it as part of the synchronized global recession. Such a situation, according to Flaherty, is deteriorating while the American economy is worsening. What is important, however, is that they are able to cushion the impact made and be prepared to get out of this recession later on.

When asked if he thinks the government should have added their own stimulus package, he maintains that he has no idea of what will go on until he can see how the current plan is being implemented. Flaherty also mentioned during remarks made that he wants fellow finance ministers coming from the Group of Seven not to increase their trade barriers because such will prevent the stimulation of all their economies.