New rules aim to strengthen the value of Canadian Citizenship

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Citizenship, Immigration and Multiculturalism Minister Jason Kenney introduced legislation that would streamline the citizenship revocation process, crack down on crooked citizenship consultants and better protect the value of Canadian citizenship.

“Canadian citizenship is highly valued around the world and today we are taking steps to ensure it stays that way,” said Minister Kenney. “These changes will help prevent citizenship fraud. As promised in the Speech from the Throne, these amendments will streamline the process to take citizenship away from those who have acquired it by fraud, including by concealment of their war crimes. And it would take decision-making away from politicians and give it to the courts.”

The full package of amendments would strengthen the process of applying for citizenship and crack down on citizenship fraud. Bill C-37: Strengthening the Value of Canadian Citizenship Act proposes to:

* Add legal authority to regulate citizenship consultants and to crack down where they help people gain citizenship fraudulently, in line with the recently proposed amendments to the Immigration and Refugee Protection Act – The Cracking Down on Crooked Consultants Act – aimed at immigration consultants.
* Increase the penalties for citizenship fraud to a maximum of $100,000 or up to five years in prison or both.
* Strengthen citizenship residence requirements to specify in the law that people applying for citizenship would have to be physically present in Canada for three of the previous four years.
* Improve the government’s ability to bar criminals, including violent foreign criminals, from becoming Canadian citizens.
* Streamline the revocation and removal process and make revocation more transparent by shifting the decision making on revocations from the Governor in Council to the Federal Court.
* Ensure that the law supports the implementation of the first generation limit to passing on citizenship, ensure that the law does not unintentionally bar applicants who are eligible for citizenship, and ensure that the children of people serving Canada aboard – children of Crown servants – are not disadvantaged by their parent’s service to Canada and are able to pass on citizenship to their children.

“Canadian citizenship is more than a legal status, more than a passport,” said Minister Kenney. “We expect citizens to have an ongoing commitment, connection and loyalty to Canada.”

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The HR Space: Obtaining a Work Permit in Canada: The Simplified Process

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The HR Space is edited by: Dominique Launay, Karen M. Sargeant, and Brian P. Smeenk. In our January 5, 2010 article, we discussed the usual process for getting a work permit for a foreign employee entering Canada: obtaining a Labour Market Opinion (or LMO). The LMO process can be complex, lengthy, and very demanding for employers. Fortunately, several exemptions exist that can provide you with a much faster, simpler process. Let's have a look at the most common of these LMO exemptions. Intra-company transfers This exemption is for workers who are being transferred to a Canadian parent, subsidiary, branch or affiliate of their American or other foreign employer.  Two types of workers are covered by this exemption: executives/senior managers, and employees who possess specialized knowledge. Immigration Canada's guidelines define an executive or senior manager as someone who manages the company or an important part of it, usually through middle managers. When there are no employees under their direct supervision, it must be proved that they manage an important function of the company, at a senior level. Middle managers or first-line supervisors do not qualify for this exemption. In order to determine how senior a position is, Immigration Canada will not rely only on the position title.  They will rely mostly on the description of the role in the company's organization chart as well as the detailed job description. An employee-applicant who possesses specialized knowledge must be very familiar with the company's products, services, processes or procedures. The knowledge must be unusual and different from what is usually found in the industry. It can be proprietary or unique to the company, but it is enough for it to be rare. Specialized knowledge does not include knowledge that could be gained by another employee in the short term.  An advanced level of knowledge of a particular industry that is not easily gained without extensive experience also qualifies under this category. In addition, the employee must: have worked for the foreign company in a similar position for at least one year in the three-year period right before his or her application, and be transferred for a temporary period only. Permits for executives and senior managers allow a maximum period of stay in Canada of 7 years. The maximum stay is limited to 5 years for specialized knowledge employees. The initial work permit may not exceed 3 years. Young Worker Programs Canada has signed bilateral agreements with a number of countries, including the U.S.A., in order to facilitate the work permit process for young workers between the ages of 18 and 35. Each agreement has its own specific requirements, but in general, it includes one or more categories that are LMO exempt: Working Holiday: for young workers who want to work part-time while travelling to another country as a tourist; International Co-op: for students who would like to gain international work experience in their current field of study; and Young Professionals: for young workers who want to gain international work experience related to their career. Each category comes with a yearly quota, so it is best to apply early in the calendar year. Work permit periods vary between 6 and 18 months, and are generally non-renewable. However, a worker may apply in another category (including an LMO-based permit) once he  or she has completed the authorized period. The North American Free Trade Agreement (NAFTA) The NAFTA offers simplified work permit criteria and processing for American and Mexican citizens. The most commonly used NAFTA LMO exemptions are for professionals and intra-company transferees. Professionals This exemption covers approximately 60 specified occupations, such as management consultants, engineers, architects, teachers, nurses or computer analysts. In addition to being a citizen of Mexico or the U.S., candidates must meet the educational and experience requirements for one of these occupations. They must enter Canada to provide pre-arranged professional services, either as an employee of the Canadian company, or as an independent contractor. Intra-company transferees The requirements under this category are similar to the general requirements mentioned above for regular intra-company transferees. The key difference is that managerial positions are not restricted to executive or senior managers.  The NAFTA exemption also applies to middle management roles. Processing times and locations: The Canadian Government office that will process a work permit application based on a LMO exemption will vary,  depending on the worker's nationality and whether they need an entry visa. For American citizens or others who do not require a visa, the application can be presented to immigration officers at any Canadian port of entry.  A pre-approval process is also available.  That process will speed up the issuance of the work permit upon arrival in Canada. A written response is usually received within 10 working days from the date an application is submitted. When a visa is required, on the other hand, the application must be presented to a Canadian Consulate or Embassy in the worker's country of residence. Processing times can vary from 2 weeks to 3 months (or more when an immigration medical examination is required). Summary One of these or several other LMO exemptions may apply to a specific case. A careful analysis of the context and circumstances of the employee being relocated is recommended. The review should be done at an early stage of preparation. It will help determine if an LMO exemption may apply and is usually very worthwhile.  Remember that LMO exemptions can save you, as a work permit applicant or employer, lots of time, effort and money.  Make sure to take advantage of these rules.

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Advertising requirements before hiring a foreign worker

Canada
June 2 2010
By:Fasken Martineau DuMoulin LLP

In our January 2010 article entitled Obtaining a Work Permit in Canada: The Labour Market Opinion Process, we explained that in order to get a work permit for a foreign worker, an employer in Canada generally must first obtain a Labour Market Opinion (LMO) from the Department of Human Resources and Skills Development Canada ("Service Canada"). In order to obtain a positive LMO, Canadian employers must prove that they have made reasonable efforts to fill the position with a Canadian citizen or permanent resident. This article discusses Service Canada's advertising requirements relating to this obligation.

Service Canada's minimum advertising requirements were recently modified. And note that the requirements are slightly different for the Province of Québec. If you are hiring an employee who will work in Québec, make sure you follow the Québec rules.

The advertising requirements depend on the level of skills required for the position. In Canada, there is a National Occupational Classification (NOC) system that classifies all jobs. Before starting a recruitment process, it is necessary to identify the code that corresponds to the position to be filled. Occupations are classified in five levels: 0 (management), A (university education usually required), B (either a college education or apprenticeship training usually required), C (secondary school and/or occupation-specific training usually required) or D (on–the-job training usually provided).

Placing an ad at Service Canada's National Job Bank is mandatory before hiring a non-Canadian in any position at skill level B and lower, except when an explicit exemption applies. Positions at levels 0 and A are the only ones for which an advertisement on the Job Bank is not mandatory.

In order to meet the advertising requirements for occupations at levels 0 or A, employers must conduct recruitment activities consistent with the practice within the occupation. For instance, if the normal practice for a certain occupation is to hire a headhunter, or to advertise on well-known internet job sites, journals or national newspapers, either recruitment method will be considered satisfactory. Alternatively, the prospective employer may advertise on the Job Bank for a minimum of 14 calendar days during the three months prior to applying for the LMO.

For occupations at skill level B and lower, both advertisement on the Job Bank and recruitment activities consistent with the practice within the occupation are necessary.

The contents of the advertisement are important. Ads placed on the Job Bank must include certain mandatory information, including the company's name, the wage range and the prevailing wage for the position. Prospective employers are advised to follow very carefully Service Canada's directives. Omission of any information or requirement (for instance, advertising for thirteen days instead of fourteen days) is cause for refusal of the LMO.

The ads have to be carefully drafted since they should provide a fair opportunity to potentially qualified Canadian citizens or permanent residents to be a candidate. At the same time they have to be specific enough to discourage applications from those who are clearly unqualified. Particular attention should be given to the education and experience requirements. These should be appropriate for the type of position and consistent with the requirements for this position according to the NOC.

Afterwards, the employer has to provide proof of these recruitment efforts and provide a report. The report should include the number of applicants for the position and the reasons for rejecting them. The reasons for rejecting applicants should be appropriate and based on objective and clear criteria. Employers should retain proof of recruitment efforts for a minimum of two years, since Service Canada may later contact the employer for verification of the report.

Note that there are certain variations to the minimum advertising requirements for some categories of employees or positions including: academics (university professors), camp counselors who will be working in Ontario, positions covered by collective bargaining agreements that stipulate internal recruitment, positions for which recruitment is done through employer associations, positions in the entertainment sector, positions with a foreign government's representative in Canada, information technology specialists (until September 30, 2010), holders of a post graduation work permit issued after graduating from a Canadian university, company owners who are involved in the day-to-day operation of the company, specialized service technicians and service providers under a warranty, amongst others.

Advertising properly is not the only requirement for obtaining a positive LMO, but is one that deserves considerable attention. Be sure that you meet them all. Also, before starting a recruitment process when contemplating applying for an LMO, do not forget that there are exemptions to the obligation to obtain an LMO (see our March 2010 article Obtaining a Work Permit in Canada: The Simplified Process). Using these exemptions can save prospective employers considerable amount of time, effort and money.

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Ottawa Tightens Regulation Over Immigration Consultants

AHN News Staff

Ottawa, Ontario, Canada (AHN) - Canadian Immigration Minister Jason Kenney will introduce in Parliament on Tuesday a bill that would tighten the country’s regulation over immigration consultants. The proposed Cracking Down on Crooked Consultants Act will allow filing of criminal charges against unregistered immigration consultants.

The bill imposes a $50,000 penalty and two-year prison term for convicted unregistered immigration consultants.

Kenney authored the bill because of mounting complaints against bogus immigration consultants who take advantage of foreigners who want to enter Canada. Among the wrong practices of these consultants are charging applicants for refugee claims even if the applicants are not real refugees or failing to complete the documentation even if the applicant has fully paid the consultant’s fees.

The bill would not affect unpaid third parties who also provide immigration advice. In that category are family members, friends and not-for-profit community groups.

Read more: http://www.allheadlinenews.com/articles/7018914528?Ottawa%20Tightens%20Regulation%20Over%20Immigration%20Consultants#ixzz0qGczmqZL

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Ottawa-Gatineau adds 2,300 jobs in May

By Robert Bostelaar , The Ottawa Citizen June 4, 2010

OTTAWA — Ottawa-Gatineau added another 2,300 jobs in May, extending a growth spurt that has boosted employment in the capital by 26,000 in the past 12 months.

Despite the increase, part of an unexpected jump of 24,700 new jobs across Canada, a rise in the number of people looking for work kept the region’s jobless rate at 6.0 per cent.

The national unemployment rate stayed at 8.1 per cent, again because more job-seekers entered the labour market, Statistics Canada reported.

May’s growth brought employment in Ottawa-Gatineau to 676,000, surpassing the previous high mark of 674,900 in November 2008, just before the economy was derailed by recession.

Proportionately, however, the region’s employment remains below record levels. Of residents aged 15 and over, 68.5 per cent held jobs last month, compared to 71.2 per cent in November and December 1988.

But Statistics Canada labour analyst Vince Ferrao says the jobs added since May 2009 signal a strengthening economy.

“Over a year it’s gone up by 26,000, and that’s a growth rate of four per cent over 12 months. That’s very healthy,” he said Friday.

Among sectors gaining jobs: retail and wholesale; finance, insurance, real estate and leasing; public administration, and health care and social assistance.

Manufacturing and high tech remain down from a year ago, but Statistics Canada said the tech sector gained an estimated 1,500 jobs in May, bringing it to 47,900.

OTTAWA— The Canadian economy added a greater-than-expected 24,700 jobs in May, the fifth consecutive monthly gain, Statistics Canada reported Friday.

The unemployment rate remain unchanged at 8.1 per cent, the federal agency said, as more people entered the labour market in search of jobs.

Across Canada, jobs were added for a fifth consecutive month.

Full-time employment rose by 67,300 in May, while part-time positions fell by 42,500. The private sector accounted for 43,400 new positions during the month, with the public sector added 9,400 jobs. However, there were 28,000 fewer self-employed workers in May, Statistics Canada said.

Economists had expected about 15,000 jobs to have been created in May, following a record-breaking 108,700 new positions the previous month. Still, most forecasters thought the unemployment rate would ease to eight per cent.

The strongest job gains were in transportation and warehousing, and health care and social assistance. Public administration and agriculture were also higher. The biggest declines were in the information, culture and recreation sectors, as well as in the accommodation and food services, and natural resources industries.

Ontario, Alberta, Newfoundland and Labrador, and Nova Scotia all saw employment gains in May, while British Columbia and Prince Edward Island lost jobs.

Meanwhile, average hourly wages rose 2.4 per cent in May, in line with gains in the same month a year earlier.

“Over the next few months, we expect the pace of job creation to move back within the 20K to 40K range, as the Canadian economic recovery continues to gain self-sustaining momentum. The unemployment rate should continue its downward trajectory,”said Millan Mulraine, economics strategist at TD Economics.

On Tuesday, the Bank of Canada began cranking up its key lending rate for the first time in nearly three years. The central bank increased borrowing cost by 25 basis points to 0.5 per cent amid signs the domestic economy is rebounding strongly, even as the global recovery appears “uneven.”

Canada’s economy grew at a faster pace than expected in the first quarter of this year, led by consumer spending. Gross domestic product rose at an annualized pace of 6.1 per cent between January and March, the biggest jump since the last quarter of 1999, Statistics Canada reported Monday.

“The solid employment gain over the past few months highlights the positive momentum in the Canadian economy, and reinforces the Bank of Canada’s rationale to hike rates earlier this week despite the turmoil in Europe,”said Benjamin Reitzes, an economist at BMO Capital Markets.

Read more: http://www.ottawacitizen.com/business/Ottawa+Gatineau+adds+jobs/3112728/story.html#ixzz0pvnJnb3O

settlement and integration in Nova Scotia

by Ryan Lum →Halifax News, →Migration

HALIFAX - On May 28, nearly 100 people filled the St. Andrew’s Community Centre Gymnasium to take part in the Nova Scotia Barristers’ Society’s (NSBS) annual public forum, called “Council in the Community,” on timely issues impacting Nova Scotians. This year’s meeting, jointly hosted with Halifax-based Immigrant Settlement and Integration Services (ISIS), was on the theme of access to the legal system in Nova Scotia for immigrants and refugees.

“It’s a two-way street,” when it comes to newcomer interactions with the law, says Sherry Jackson-Smith, who works with immigrants involved with the prison system. “Immigrants have to have a grasp of the Canadian legal system, but legal workers need to understand where they are coming from.”

About half the participants were newcomers to the province - some recently arrived, some more seasoned - who lent their experiences as immigrants or refugees trying to access the legal system or other forms of government service.

This meeting was the first of its kind for the province as far as the organizers are aware, and many were grateful for the conversations.

“Newcomers and legal workers rarely interact outside of a formal setting,” said Mirjana Musanovic, a crisis councilor with ISIS, “so this kind of a meeting stirs up thoughts and ideas that hardly get touched on elsewhere.”

Many newcomers cited difficulties with Canadian legal culture, whether it was through a court, or something like trying to find housing.

“Buying property in my country is easy,” says Linda, an immigrant from China. “Here, you need a lawyer, you need insurance.”

Another man, who preferred not to be named, arrived from Iran 10 months ago under the Nominee Program, and has been unable to get recertified in his profession. “I was a dentist for 16 years. Here, I cannot get my license unless I spend 5 years and pay $100,000”.

For newcomers, language can also be a significant barrier to accessing the proper legal outlets.

“When you don’t speak [one of the official] languages, getting proper legal representation becomes very difficult. Poor translation leads to misinformation, and there is huge waste of the system’s resources because of it,” says Claudine Bertin, who runs Access Language Services, a legal interpretation business. She says that while there is a huge demand for legal interpreters, Nova Scotia Legal Aid has no budget to meet the demand. Most of the newcomers participating in the conference were invited through English classes they are currently enrolled in.

Strategies for supporting newcomers are becoming increasingly important in Nova Scotia. During last summer’s election campaign, Premier Darrell Dexter said that he plans to double the number of immigrants to Nova Scotia in the next 10 years to make up for a widening demand gap in skilled workers.

“To double the number of immigrants, you need to double the capacity of programs that promote access,” said Jack Potter, Diversity and Leadership Outreach coordinator at ISIS, “Ultimately, access to the legal system enhances access to all the other elements of our social support network.”

Jane Kirby, a member of No One Is Illegal Halifax (NOII-Halifax) adds that current immigration policies that restrict immigration status to certain classes of skilled workers, including high application fees and bureaucratic restrictions, bar many people currently living in Canada from accessing legal immigration status. She also says that skilled workers are not the only newcomers filling economic needs.

“An estimated 200 000 to 500 000 people are living without status in Canada, often working in precarious, low-wage jobs,” says Kirby. “These people are filling labour market needs, but because of their economic status are barred from obtaining status in Canada via the immigration system.”

Potter thinks a shift in thinking about immigration is required. “Traditionally, bringing immigrants to Canada has been about fulfilling the needs of the country, which have been mostly economic. What we want to see is a system that considers the needs of immigrants as well.”

Kirby agrees that a shift in thinking is necessary.

“What is needed at the most basic level is an immigration system that looks at migrants as people, not as commodities to fill economic needs,” she says.

Kirby says Canada’s immigration system is currently moving in the opposite direction: late last year, Minister of Immigration and Multiculturalism Jason Kenney cut the number of refugees accepted in Canada from 29,000 to 12,000, according to NOII-Halifax. Earlier this month, members of NOII dropped a banner in Halifax to draw attention to reforms Minister Kenney is proposing that would make it more difficult for people to seek asylum in Canada

Canada on track to lead G7 economies this decade: CIBC

By STEFANIA MORETTI, QMI Agency

This may be Canada’s decade, according to a new report by CIBC that predicts the country is likely to lead growth in the G7 for the next 10 years if it plays its cards right.

Relatively lower government and corporate debt, immigration and trade balances mean it’s Canada’s “time to shine,” according to a report released Friday by CIBC World Markets.

Mounting debt troubles in Europe and geopolitical tensions in Asia have grabbed headlines in recent weeks.

It’s not that Canada will benefit from others’ malaise, Avery Shenfeld, CIBC's chief economist, told QMI Agency. A weakening in any part of the world is still bad for every other country in terms of exports.

“It’s more that when we look at who’s going to do better over the medium term, we have some advantages in terms of not having as many problems as they do.”

Problems in Europe have overshadowed Canadian fundamentals and even dampened expectations for growth.

But Canada's rich resources, resilient financial system and favourable demographics relative to other G7 nations make it an economic contender looking out over the next five to 10 years, Shenfeld said.

Another notable positive is in Canada's healthier state of public- and corporate-sector balance sheets.

But these factors aren’t “ironclad,” Shenfeld warned. They only mean Canada is better positioned than its debt-laden counterparts. “It’s not smooth sailing from here.”

Controlling ballooning debt and tightening fiscal policy appear to be the keys to success, Shenfeld said.

Canada’s central bank will be among the first to hike its interest rates this summer, so growth may not be something to boast about in 2011. But that will change, Shenfeld said.

“It’s as we look further on that we will have fewer years of cuts, that Canada may, in fact, shine through,” he said.

Finance Minister Jim Flaherty has put into motion a plan to rein in spending with the hope of all but reducing Canada’s budget deficit from $53.8 billion in 2010 to less than $2 billion by 2015.

Canada’s parliamentary budget officer has said the effort isn’t enough, and that five years down the line, federal balance sheets are projected to show a structural deficit of $12.3 billion.

Still, Canada’s current federal deficit of 3% of GDP (5% including provinces) pales in comparison to the U.S.'s and U.K.'s double-digit deficit-to-GDP rations, Shenfeld said.

Canada’s population and productivity demographics are also in better shape than more mature economies thanks to strong immigration and renewed business investment.

Resource-hungry emerging markets will also ensure strong demand for energy and metal products, which traditionally account for about a third of Canada's domestic income growth, the report said.

Canada will have more seniors than kids in the next decade: StatsCan

Canada’s population is expected to increase by as much as 14 million by 2036, according to Statistics Canada’s newest report on population growth.

The agency projects that between 2009 to 2036, Canada’s population could grow from its current 33.7 million to between 40.1 million and 47.7 million.

According to the report, immigration levels represent the greatest share of the projected population increase, with Canada receiving as many as 333,600 immigrants a year by 2036, compared with 252,500 in 2010.

But high immigration levels won’t put a dent in Canada’s rapidly aging population– seniors could account for nearly a quarter of Canada’s entire population by 2036, nearly double the 13.9% they accounted for in 2009.

Seniors are expected to surpass the number of children aged 14 or under for the first time ever between 2015 and 2021.

StatsCan’s provincial and territorial breakdowns have Ontario and B.C. leading the pack in population growth, with rates higher than the national average. Newfoundland and Labrador was the sole province projected to have a population decrease.

Ontario’s population is expected to increase from nearly 13.1 million in 2009 to between 16.1 million and 19.4 million in 2036; Quebec’s population would increase from 7.8 million in 2009 to between 8.6 million and 10 million in 2036. In the west, British Columbia’s population would increase from nearly 4.5 million in 2009 to between 5.8 million and 7.1 million in 2036.

Below, a complete breakdown of StatsCan’s projected population growth by province.

• Alberta’s population would increase from 3.7 million in 2009 to between 4.6 million to 5.4 million in 2036.
• Manitoba’s population would increase from 1.2 million in 2009 to between 1.4 million to 1.7 million in 2036.
• Saskatchewan’s population would increase from 1 million in 2009 to between 1.1 million to nearly 1.3 million 2036.
• Nova Scotia’s population would increase from 938,000 in 2009 to between 987,000 and 1.1 million in 2036.
• New Brunswick’s population would increase from 750,000 in 2009 to between 772,000 and 874,000 in 2036.
• Newfoundland and Labrador’s population could decrease from nearly 509,000 in 2009 to 483,000 in 2036. But medium to high growth projections could result in an increase of anywhere from 514,000 to 545,000 in 2036.
• Prince Edward Island’s population would increase from 141,000 in 2009 to between 161,000 and 188,000 in 2036.
• The population of the Northwest Territories would increase from 43,000 in 2009 to between
49,000 and 57,000 in 2036.
• Yukon’s population would increase from nearly 34,000 in 2009 to between 36,000 and 42,000 in 2036.
• Nunavut’s population would increase from 32,000 in 2009 to between 36,000 and 44,000 in 2036.

Read more: http://news.nationalpost.com/2010/05/26/canadas-population-could-exceed-40-million-by-2036-statscan/#ixzz0pBYcSKNq

OECD lifts 2010 growth forecasts for rich economies but sees no end to era of instability

Economic recovery in the world’s richest countries is accelerating thanks to a “substantial” rebound in trade and growth in Asia, but austerity measures are needed to reduce government deficits, a leading agency said Wednesday.


The Organization for Economic Co-operation and Development, a watchdog for 31 of the world’s most developed countries, said the current environment is “relatively auspicious” but faced with serious risks.

Those include Europe’s sovereign debt crisis and a possible boom-bust scenario in emerging markets such as Brazil, India and China – which have been growing much faster than the more developed OECD economies.

“The period of significant financial instability that began in August 2007 is not yet over,” the OECD warned in its latest biannual Economic Outlook.

The Paris-based group also raised its forecasts for economic growth in its member countries – which include Canada, the United States, Japan, Germany and the United Kingdom – to 2.7 per cent this year, up from its forecast of 1.9 per cent last November.

Canada’s growth this year is expected to be ahead of most other OECD countries, with real gross domestic product to be 3.6 per cent over the weak performance of 2009.

The OECD lifted its forecasts for Japan, the United States and the eurozone countries, but Japan and the U.S. are still expected to outpace Europe, the report said. Japan’s growth is estimated at three per cent in 2010 and the U.S. GDP is expected to rise by 3.2 per cent.

“The outlook has really improved in this short period” since the OECD’s last forecast, Secretary-General Angel Gurria said in a news conference at the organization’s headquarters.

But the OECD chief urged member countries to pursue “fiscal consolidation” – reducing their deficits through spending cuts and a clampdown on tax evasion – which he said was “imperative” to make the OECD’s positive growth outlook a reality.

The OECD publishes its economic outlook twice a year, although it updated some 2010 forecasts in an interim assessment published in April.

Europe’s response to its sovereign debt crisis – the latest chapter in the global financial and economic turmoil that began three years ago – has been “prompt and massive,” the OECD said, but has failed to settle the currency bloc’s “underlying weaknesses.”

The OECD called for “bolder measures” – up to and including an effective fiscal union – among eurozone countries in order to “dissipate doubts about the long-term viability of the monetary union.”

“Bolder measures need to be taken to ensure fiscal discipline, along a continuum that ranges from stronger surveillance and more effective sanctions for noncompliance, to external auditing of national budgets all the way to de facto fiscal union,” the OECD said.

Gurria stressed that the current turbulence in Europe is part of the same crisis that began in the U.S. in 2007. “This is the same crisis, it’s a continuum,” Gurria said, adding that the next challenge after slashing the massive debt loads countries took on save the banking industry and combat recession is unemployment.

Unemployment in the OECD area is forecast to peak at 8.5 per cent by the middle of this year, Gurria said. It will remain stuck at over 8 per cent next year however, as companies in Japan and Europe are expected to increase working hours of employees rather than hire new workers.

The U.S. economy has been boosted by stimulus measures, improving financial conditions, demand from the fast-growing non-OECD economies of Asia – especially China – and the stabilization of the housing market.

The employment outlook in the United States also looks better than in Europe and Japan. The OECD predicted that unemployment will come down to 8.9 per cent next year from a high of 9.7 per cent this year, as unlike their counterparts in Europe and Japan, U.S. businesses shed large numbers of employees in the downturn and should “rehire relatively strongly” in the upturn, the OECD said.

The OECD predicts the U.S. economy will expand at a rate of 3.2 per cent in 2010, up from a November forecast of 2.5 per cent.

In Europe, the economies of the 16 countries sharing the euro are now expected to grow by 1.2 per cent this year compared to a November forecast of 0.9 per cent.

Unemployment will peak at 10.1 per cent this year in the eurozone and stay stubbornly at that level in 2011, sapping the strength of the recovery, the OECD said.

The recent weakness in the euro versus the dollar will benefit European growth, OECD chief economist Pier Carlo Padoan said. “I would not be concerned if we see a further decline in the euro,” Padoan said, “This would be a welcome addition to external demand for the euro area.”

Padoan added that “the global economy needs some rebalancing in exchange rates,” saying that the euro has been overvalued versus the dollar and China’s currency undervalued.

Japan’s economy will grow by three per cent this year compared with the November forecast of 1.8 per cent, the report said.

– By Greg Keller, The Associated Press, with a contribution from The Canadian Press in Toronto