Canadian Labour Congress

Canadian Labour Congress

October 17, 2005 11:19 ET

Labour to Bank of Canada: Don't Hike the Rates

Attention: Assignment Editor, Business/Financial Editor, City Editor, News Editor, Government/Political Affairs Editor OTTAWA--(CCNMatthews - Oct. 17, 2005) - The Canadian Labour Congress, on behalf of all working people, urges the Bank of Canada not to raise the key interest rates. In a letter to Bank of Canada Governor David Dodge, the president of the Canadian Labour Congress, Ken Georgetti, questions the view that the Canadian economy is operating at full capacity.

"This is most apparent in the labour market where there are nearly 1,174,000 Canadians who are actively looking for work, but cannot find employment," writes Georgetti. The Canadian Labour Congress points to the fact that sectors that are said to operate at high capacity such as forestry, wood and paper have all been subject to a series of well-publicized plant closures.

"In a globalized economic context, we believe the appropriate policy response is to encourage investment rather than discourage it through higher interest rates," adds Georgetti.

The letter also says: "Behind the stability of the unemployment rate, we note some signs of weakness: the rate of job creation in 2005 has been the weakest since the mid-1990s. It appears that private sector employers are not pulling their weight as shown by the fact that they only accounted for 28% of net total job creation so far this year. As was the case in the years of economic sluggishness in the mid-1990s, jobs are mostly being created by people turning to self-employment. One observes in that regard that younger Canadians have had a more difficult time finding employment of late."

The complete text of the letter to Governor Dodge is posted on www.canadianlabour.ca with this news release.

The Canadian Labour Congress, the national voice of the labour movement, represents 3 million Canadian workers. The CLC brings together Canada's national and international unions along with the provincial and territorial federations of labour and 137 district labour councils. Web site: www.canadianlabour.ca
IN: ECONOMY, FINANCE, LABOUR, POLITICS, SOCIAL

Contact Information

  • Jean Wolff, Canadian Labour Congress
    Primary Phone: 613-526-7431
    Secondary Phone: 613-878-6040
    E-mail: communications@clc-ctc.ca