Labrador employers recruiting immigrants

CBC News

Posted: Oct 21, 2011 2:52 PM NT

Last Updated: Oct 21, 2011 2:58 PM NT

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Happy Valley-Goose Bay employers are recruiting abroad, reports Peter Cowan

Foreign workers2:35

Erma Montemayor moved to Labrador over a year ago. (CBC)

Immigrants are filling low paying jobs in Happy Valley-Goose Bay where employers can't find local residents to hire.

More than 40 Filipinos have moved to central Labrador in the last two years to work at corner stores, fast food restaurants and coffee shops.

"It is a huge adjustment of course. First is the weather, and the location… I'm getting used to it anyway, I'm liking it here," said Erma Montemayor, a Filipino who moved to Happy Valley-Goose Bay more than a year ago.

Montemayor has a degree in computer science from the Philippines, and is now employed at a Labrador Mini Mart store. "It is a big opportunity to get in here in Canada to earn much more what we earn usually in our country, " Montemayor told CBC News.

Before hiring Filipino workers, the Labrador Mini Marts struggled to find employees. Paul Snelgrove, owner of Labrador Mini Marts said the store hours were shortened because of a lack of employees.

"We would get workers and they would continue to move on. We couldn't keep anyone for any period of time. Even paying more money because we can't compete with the DND and the Serco. Retention of workers was just, we were losing workers every week," said Snelgrove.

Snelgrove said he admires the loyalty and work ethic shown by the Filipinos he has hired, and plans to hire more.

Immigration support by Canadians at all-time high

Support for immigration in Canada is at an all-time high, suggests a new study that tracked attitudes about newcomers to the country over the last 40 years.

The study by the Institute for Research on Public Policy found that Canadians think favourably of immigration despite recessions, terrorism and a changing political landscape over the years.

The attitude is unique in western countries and stems from two strong Canadian beliefs.

"One is that people believe that immigration is a boon to the economy, partly because we select immigrants on the basis of skills and we don't have a border with Mexico so we don't have unskilled immigrants coming in without authorization. On the cultural side, we have this policy called multiculturalism that sort of became part of the Canadian identity and one of the points of pride distinguishing Canada from the U.S.," study author Jeffrey Reitz told the CBC's Louise Elliott.

The study looked at a cross-section of polls done by companies like Gallup, Environics and EKOS since the mid-1970s. Not only has support for immigration stayed high, but it's surged in the past six years, at a time when such support has dropped in the U.S.and Europe.

In 2004, EKOS found 63 per cent of Canadians supported current or higher levels of immigration and by 2010, after a sharp recession, that number jumped to 67 per cent.

The report also noted that Canadians in poorer parts of the country are the most likely to support immigration.

"We have the anomaly that the areas of Canada that have the most challenging economic circumstances, especially Atlantic Canada but also in the Prairies, they're the most positive places on immigration because of this belief that immigration helps the economy," said Reitz.

Other immigration experts agree and say Canadians support the federal government's policies that are bringing in skilled workers.

"The rules have been changed to bring in economically sufficient immigrants, people who create jobs and wealth for this country while maintaining our humanitarian balance," said Richard Kurland, an immigration lawyer in Vancouver.

Some of Canada's immigration-related policies have been controversial but Reitz said they've helped the Conservatives build a reputation as being pro-immigrant, while at the same time appeasing their political base – Conservative voters are the least likely to support high immigration levels.

Reitz said they do, however, support Ottawa's attempts to integrate new Canadians into mainstream society.

"The message …from the Conservatives that multiculturalism is fine but we're going to emphasize integration of people into the mainstream. In a way that's clever because Canadians do want immigrants to integrate into the mainstream. I think it's one reason why Canadian multiculturalism seems to be popular here whereas it's been rejected in Europe because the government has always made it clear the goal of multiculturalism is to integrate people into the mainstream," he said.

Reitz said the government's social conservative values are endorsed by immigrants and that Conservatives have been able to win their support and that's contributed to Canadians' attitudes about immigration.

"The fact that the Conservatives have been successful in getting immigrant support is one of the features of our political landscape that helps us maintain this pro-immigration mindset," he said.

Do immigrants make better entrepreneurs?

Jessica HumeSpecial to the Star

Toronto entrepreneur Haroon Mirza is a self-made millionaire at the age of just 29.

Mirza and his two partners, who sold their software company to Intel last year, credit hard work and timely advice for their success.

But Mirza also gives part of the credit to the fact he is an immigrant. He came here at 13 with his family, who are originally from Pakistan but also lived in Saudi Arabia and England.

“When your family made sacrifices to be here, you’re going to be extremely motivated to be successful,” he explains. “When I was young, I didn’t know what I wanted or how I would achieve it, but I knew that I would pursue whatever vision with an extreme intensity.”

He suggests immigrants tend to be equipped with the unteachable characteristics that make an entrepreneur successful. The risk inherent in picking up and moving abroad in the hopes of establishing new roots is akin to the risk and emotional investment in taking an idea and making it happen.

That makes sense, says Douglas Cumming, a professor of finance and entrepreneurship at York’s Schulich School of Business.

“In general, it’s not your average person in the home country who’s moving abroad, but the best people,” he says. “The characteristics that make someone able to go abroad, the risk-taking ability, means they’re probably more likely to do well in business.”

Mirza shared his entrepreneurial drive with Faizal Javer and Shahzad Malik. The three friends held regular brainstorming sessions while studying corporate finance at Carleton University in Ottawa.

“The only thing we knew was that we wanted to be in business together,” he says. “We shared these core values and we all had that entrepreneurial drive. During those brainstorming sessions, we tried to figure out what company needs a solution to what problem.”

In many ways, they were the perfect trio: the computer guy, the business guy and the entrepreneur. But they had questions, so they sought the guidance of someone who had experience executing a business plan.

They met with Suresh Madan, executive vice-president and portfolio manager at Excalibur Capital Management Inc., where he manages $110 million of portfolios, primarily for early stage companies.

Madan is also president of the Toronto chapter of a business support group called TiE, which stands for Talent, Ideas, Enterprise.

TiE began in the Silicon Valley in 1992, with a handful of primarily South Asian entrepreneurs who had prospered selling their startups and wanted to help others do the same. TiE now has 57 chapters around the world, including Toronto since 2001.

“We are fully devoted to entrepreneurs and helping people start a business,” Madan says. “We believe immigrants have the advantage ... the impetus that causes someone to immigrate provides a certain risk-taking ability that is required in starting a new venture.”

Mirza and his friends were partnered with a TiE mentor who worked tirelessly with the trio to hone their business idea.

“The mentor really helped and forced us to articulate our thoughts better. We did a lot of research, we read all the technology news, and that’s how we came to learn more about the digital signage industry,” Mirza explains.

“You know those electronic posters, like the ones in Tim Hortons? We learned that this industry was trying to track advertising more. They wanted to know how many people were seeing these, what gender they were, how long are they looking. They wanted to be able to measure how successful these posters were.

“We asked ourselves, could we find the solution?”

Turns out, they could. Under the company name CognoVision, they developed software that uses facial recognition to provide advertisers with information about how successful their ads are.

The technology can gather data about how many people walk by an ad, how many stop to watch, how long they watch, their gender and even their age.

In 2007, the company entered its technology in the annual TiEQuest Business Venture Competition. It didn’t win, but the company attracted the attention of industry heavyweights. In 2009, it was named the most innovative company in Canada by the Canadian Innovation Exchange.

In 2010, Intel approached them with an acquisition offer. Mirza won’t disclose how much Intel paid for CognoVision, but industry analysts have estimated anywhere from $17 million to $25 million.

TAKE ADVANTAGE OF SECOND CAREER IN ONTARIO

The Second Career strategy launched by the Ontario Ministry of Training, Colleges and Universities pays for the training or education that Ontarians require to get a better job. It provides financial help up to $28,000, or more in some cases, to pay for:

» Tuition
» Living Expenses
» Help caring for dependents
» Travel
» Transportation
» Disability supports
» Other living and training costs
» Books

Those who qualify may have some or all of these costs covered within the Second Career Strategy. In order to find out if you qualify for Second Career or any other government funding, all candidates must visit a Employment Ontario assessment centre for an assessment interview.

THINGS ARE LOOKING UP!Open yourself up to new opportunities by getting trained for a new career! Check out all the ways in which Second Career can make your future something to smile about:

Funding for You: The Ontario Government set out to help people recently laid off by directing millions of dollars toward getting Ontarians retrained and back to work.

New Directions: Discover hundreds of potential careers that your background and skills fit perfectly. Second Career gives you a second chance!

New skills: Going back to college or university is empowering. Learn the tools of a new trade that can be applied to a thriving career in today’s workforce.

Career Guidance: Both public and private institutions offer excellent training for careers but how will you know what job is right for you? Browse our listings then visit a Second Career assessment center to figure out what job is right for you.

A Fresh Start: It’s not uncommon to switch careers nowadays. It gives us a chance to learn something new, try out a different field and stay excited about our work!

Support: Second Career is not a loan. It’s money that the Ontario government is giving away to people who have been negatively impacted by the economy. It’s there for you so take advantage!

CAREERS THAT MAY QUALIFY FOR SECOND CAREER FUNDING IN ONTARIO:

Business, Finance and Administration:

Administrative Officers (NOC 1221)
Bookkeepers (NOC 1231)
Executive Assistants (NOC 1222)
Insurance Adjusters and Claims Examiners (NOC 1233)
Insurance Underwriters (NOC 1234)
Legal Secretaries (NOC 1242)
Medical Secretaries (NOC 1243)
Property Administrators (NOC 1225)
Secretaries (Except Legal and Medical) (NOC 1241)

Natural and Applied Sciences

Air Pilots, Flight Engineers and Flying Instructors (NOC 2271)
Aircraft Instrument, Electrical and Avionics Mechanics, Technicians and Inspectors (NOC 2244)
Architectural Technologists and Technicians (NOC 2251)
Biological Technologists and Technicians (NOC 2221)
Chemical Technologists and Technicians (NOC 2211)
Civil Engineering Technologists and Technicians (NOC 2231)
Computer and Network Operators and Web Technicians (NOC 2281)
Drafting Technologists and Technicians (NOC 2253)
Electronic Service Tech (NOC Household & Business Equipment) (NOC 2242)
Forestry Technologists and Technicians (NOC 2223)
Industrial Designers (NOC 2252)
Industrial Instrument Technicians and Mechanics (NOC 2243)
Land Survey Technologists and Technicians (NOC 2254)
Mechanical Engineering Technologists and Technicians (NOC 2232)
Systems Testing Technicians (NOC 2283)
User Support Technicians (NOC 2282)

Health

Ambulance Attendants and Other Paramedical Occupations (NOC 3234)
Licensed Practical Nurses (NOC 3233)
Massage Therapist (NOC 3235)
Medical Laboratory Technicians (NOC 3212)
Medical Laboratory Technologists and Pathologists’ Assistants (NOC 3211)
Medical Radiation Technologists (NOC 3215)

Social Science, Education, Gov’t Service

Community and Social Service Workers (NOC 4212)
Early Childhood Educators and Assistants (NOC 4214)
Paralegal and Related Occupations (NOC 4211)

Art, Culture, Recreation and Sport

Audio and Video Recording Technicians (NOC 5225)
Graphic Arts Technicians (NOC 5223)
Graphic Designers and Illustrators (NOC 5241)
Interior Designers (NOC 5242)
Other Technical and Co-ordinating Occupations in Motion Pictures, Broadcasting and the Performing Arts (NOC 5226)

Sales and Service

Bakers (NOC 6252)
Butchers & Meat Cutters - Retail Wholesale (NOC 6251)
Chefs (NOC 6241) Cooks (NOC 6242)
Hairstylists and Barbers (NOC 6271)
Insurance Agents and Brokers (NOC 6231)
Real Estate Agents and Salespersons (NOC 6232)
Retail and Wholesale Buyers (NOC 6233)
Technical Sales Specialists - Wholesale Trade (NOC 6221)

Trades, Transport and Equipment Operators

Aircraft Mechanics and Aircraft Inspectors (NOC 7315)
Bricklayers (NOC 7281)
Cabinetmakers (NOC 7272)
Carpenters (NOC 7271)
Crane Operators (NOC 7371)
Electric Appliance Servicers and Repairers (NOC 7332)
Electrical Power Line and Cable Workers (NOC 7244)
Electricians (NOC Except Industrial and Power System) (NOC 7241)
Heavy-Duty Equipment Mechanics (NOC 7312)
Industrial Electricians (NOC 7242)
Machinists and Machining and Tooling Inspectors (NOC 7231)
Motor Vehicle Body Repairers (NOC 7322)
Plumbers (NOC 7251)
Refrigeration and Air Conditioning Mechanics (NOC 7313)
Sheet Metal Workers (NOC 7261)
Stationary Engineers and Auxiliary Equipment Operators (NOC 7351)
Steamfitters, Pipefitters and Sprinkler System Installers (NOC 7252)
Telecommunications Installation and Repair Workers (NOC 7246)
Tool and Die Makers (NOC 7232)
Welders and Related Machine Operators (NOC 7265)

Primary Industry

Farmers and Farm Managers (NOC 8251)
Landscaping & Grounds Maintenance Contractors & Managers (NOC 8255)
Nursery and Greenhouse Operators and Managers (NOC 8254)

Processing, Manufacturing and Utilities

Papermaking and Coating Control Operators (NOC 9234)

Scotiabank buys Colombia’s Banco Colpatria

BY JAMESON BERKOW, FINANCIAL POST OCTOBER 20, 2011 11:07 AM

Scotiabank is expanding its South American footprint with the purchase of Banco Colpatria on Thursday.

Among Canada’s most internationally-focused financial institutions, Scotiabank agreed to purchase 51% of the Colombian retail bank for US$500-million and 10-million Bank of Nova Scotia shares. Expected to close by December, Scotia values the transaction at approximately US$1-billion.

“We are pleased to be partnering with Mercantil Colpatria, a well-established and well-regarded Colombian conglomerate that has successfully led the growth of Banco Colpatria for more than 40 years,” Rick Waugh, President and CEO of Scotiabank, said in a release.

“We look forward to the success we will achieve by combining the unique strengths of our two companies and focusing on our future growth in Colombia.”

Banco Colpatria is Columbia’s fifth largest financial group and the country’s second-largest credit card issuer. As of last month, the bank had US$6.2-billion in assets and US$4.2-billion in deposits.

Scotiabank first entered the Colombian market last year with its acquisition of RBS wholesale banking for an undisclosed amount in March 2010, but has maintained a strong presence in the region since the 1970s. The bank currently has more than 22,000 employees in 820 branches spread across Central and South America.

The acquisition “dovetails quite nicely with [Scotia's] Latin American presence,” John Aiken said in a brief note to clients on Thursday morning. But the Barclays Capital analyst expressed surprise that shares were involved as part of the deal, saying it was the first time in recent history the bank had done so, with the DundeeWealth transaction being the sole exception.

“This may have been a result of the fact that it was a sizeable transaction at roughly US$1-billion versus the roughly US$700-million spent on just under 20% stake in the Bank of Guangzhou,” Mr. Aiken said.

“We view the acquisition positively and believe it incrementally adds to Scotia’s very positive growth profile.”

The strategy, according to Scotia international banking chief Brian Porter, is to use Banco Colpatria’s retail network of 175 branches and 308 ATMs to provide more comprehensive banking services to the approximately 45 million potential customers in the Latin American country.

“Working with our partner’s strong management team we will provide support and expertise to leverage Banco Colpatria’s competencies and accelerate its growth in Colombia,” Mr. Porter said in a release.

“The strengths of their retail business complemented by our wholesale operations in the country will enable Banco Colpatria to service and grow new client segments in the Colombian market.”

Scotia will have the option of purchasing the remaining 49% of Banco Colpatria at a “fair market value” after seven years. The deal will add to Scotia’s earnings for its 2012 fiscal year, the bank said, with a double digit return on invested capital.

Canadian banks top choice for U.S. money market funds

BY JOHN SHMUEL, FINANCIAL POST

In the wake of a deteriorating European debt crisis, U.S. money market funds have made Canada their top investment destination.

Based on data from Fitch Ratings for the month of September, Canadian banks now represent 10.7% of American money market fund exposure. That is because exposure to Canadian banks increased a whopping 12% from August to September.

The increase comes at the expense of European banks, which have seen U.S. money market funds steadily pull out over the last few months. European bank exposure now represents 37.7% of total holdings of $654-billion, based on a sample of the 10 largest money market funds surveyed by Fitch.

That’s a decrease from the 42.1% of total assets exposed to European banks in August, and a further retreat from the 47.2% exposure in July.

“In percentage terms, the current exposure level is the lowest observed within Fitch’s historical time series, which dates back to second-half 2006,” Robert Grossman, group managing director for Fitch Ratings, said.

U.S. money market funds have been particularly sheepish about France in recent months. Exposure to French banks tumbled to 6.7% in September, down from 11.2% in August. While that was one of the steepest drops thus far, it represents a continuing trend. Exposure to French banks peaked in the second half of 2009, when French lenders represented 16.4% of U.S. money market assets.

So which banks do money market managers prefer? According to Fitch, the top Canadian bank was Bank of Nova Scotia, with 3.1% exposure. That still makes Scotiabank fifth overall, however, trailing Germany’s Deutsche Bank, which averaged 3.5% exposure. Tied with Deutsche for the top spot was the United Kingdom’s Barclays and Australia’s Westpac.

The second most held Canadian bank was Royal Bank of Canada, with 3% exposure. No other Canadian banks made it into the top 10, which represented a combination of European, American, Australian and Japanese lenders.

Unfamiliar rules, red tape create extra problems for immigrant entrepreneurs.

BY MARY TERESA BITTI, POSTMEDIA NEWS OCTOBER 17, 2011

Giving new immigrants an opportunity is Arnon Melo's way of paying forward the break one of his first bosses in logistics gave him after he came to Canada.

Melo is founder and managing director of Mellohawk Logistics, an international freight forwarder based in Toronto, which was recognized this year for its leadership role in community-building by Scotiabank and the Canadian Federation of Independent Business's Small Business Big Impact Challenge awards program.

Mellohawk was selected because of its commitment to actively hiring new immigrants and its mentorship program for students to learn about logistics and/ or study English as a second language.

Melo came to Canada in 1986 to study English. ``I fell in love with Toronto and felt a close connection to Canada. I just knew I was meant to be here,'' he says. In 1990, after finishing his undergraduate degree, he emigrated to Canada from Brazil with the dream of one day owning a business.

It's a dream shared by many new immigrants. There are 2.7 million small businesses in Canada and increasingly the entrepreneurial landscape is being influenced by new Canadians, who are more inclined to be self-employed than are Canadian-born citizens. This is particularly important as small business is increasingly becoming a critical economic driver.

In the past 10 years, 98.5 per cent of all new jobs in Canada were created by companies with less than 100 employees, and nearly 60 per cent were created by companies with fewer than five employees, according to Winning Strategies for Immigrant Entrepreneurs (WISE 5) - a project funded by Citizenship and Immigration Canada, Ontario region, to encourage and support new immigrant entrepreneurs.

Many of their challenges are the same as those faced by any entrepreneur: access to financing, finding qualified workers and building markets, says Dan Kelly, senior vice-president, legislative affairs for the CFIB. ``But these challenges can be exacerbated because new immigrants don't have experience with the regulatory framework and navigating the maze of government.''

Getting that experience is why social capital in the form of ethnic networks and family ties are critical in the foundation and operation of businesses, says Sandeep Agrawal, professor and program director at Ryerson University. ``The most prevalent difficulties new immigrant entrepreneurs face include lack of funding, lack of support (from the government) and cultural differences. To overcome these difficulties, they rely on their own efforts and their resilience, a crucial characteristic of an immigrant entrepreneur.''

Melo had a string of odd jobs when he arrived in Canada - working at a battery factory, waiting tables and cleaning. ``These jobs were to survive,'' he says. ``I wanted to get an education here. I believed without that I couldn't accomplish my dreams.'' He went on to study international business at Toronto's Seneca College and soon after got a job at a freight forwarding company where he worked his way up to air freight manager. He decided to strike out on his own after new management took over.

A business's success is directly linked to the informal networks a business owner is able to tap to help with supply, talent, and leads, Kelly says. ``That's why choosing the right community to start up is particularly important for new immigrants whose networks are less developed. It's important to plug in as quickly possible with local community organizations such as the rotary club. Community activities, schools and sports can help new immigrants build those informal networks so important for business.''

That's also why provinces such as Alberta, New Brunswick and Prince Edward Island have established mentoring programs for new immigrant entrepreneurs. The CFIB's member services include business counselling particularly beneficial to immigrant entrepreneurs.

``We have 15 people across Canada who help businesses deal with the maze of government,'' Kelly says. ``We have a range of discounts on credit and debit card processing services and insurance for members, as well.'' And The Canadian Youth Business Foundation Newcomer Program offers business startup loans of up to $15,000 to new immigrants between the ages of 18 and 34.

From his vantage point as director of small business banking at Scotiabank, David Wilton says one of the best resources to help new immigrants understand the realities of the environment in which they will be operating is other small business owners in those communities. ``They can be valuable mentors particularly when it comes to understanding cultural practices and business norms.''

Still, even with the challenges they face as a group, Wilton says immigrant entrepreneurs are particularly successful. ``Their personal commitment to make businesses work is strong. We ran the Small Business Big Impact Challenge to celebrate the contributions of all small businesses to local communities and the degree to which they improve the quality of life of Canadians.''

Almost 10 years in, Mellohawk Logistics has 10 employees from diverse backgrounds who together speak 15 languages. Melo chose to make Toronto his business base because of its multicultural makeup.

``So much business came our way because of the expertise we have with the culture, the language,'' says Melo. ``I've helped clients close deals by translating on conference calls for them. My employees do the same. They bring business to us because of their language skills. We are absolutely making the most of our diversity.'' For Financial Post

Fast-track sponsors willing to pay ‘medical premium’ for aging parents, immigration lawyer says

A Canadian immigration expert is proposing people sponsoring elderly parents and grandparents to Canada who are willing to pay a $75,000 “medical premium” have their applications fast-tracked.

Richard Kurland is scheduled to speak to a Commons committee Thursday and pitch his buy-your-entry idea as a way of reducing Canada’s growing immigration backlog of parent sponsorships.

Australia has a similar fast-track stream where one can pay an upfront fee to expedite a parental sponsorship. The price tag is almost $40,000, compared to a regular $3,245 fee.

“The problem with the backlog for parents has to do with money . . . concerns over their medical costs on Canadian taxpayers,” said Kurland, invited to the standing committee on citizenship and immigration by the three main political parties.

Currently, Ottawa has a backlog of nearly 80,000 parental sponsorship applications, representing 168,530 people. The annual quota for parents is 11,500 and files can take five years to process.

Kurland, a Quebec lawyer, said the federal government could assign 2,500 additional spots a year to those willing to pay the premium.

“Immigrants who could afford it don’t expect a free ride. They wouldn’t mind paying the price if they could get the parents here sooner,” noted Kurland, who came up with the $75,000 based on research on health insurance actuaries. Fees are normally about $1,100 to sponsor a parent.

The parents would still have to pass a criminal clearance and medical exam before permanent residency is granted, he added.

Kurland said Ottawa could also offer quicker processing to investors who applied for immigration before July 1 by doubling the required $400,000 investment. (Canada raised the bar to $800,000 for investor applications after July 1). There are 22,328 investor applications in the backlog, with an annual quota limited to 2,200.

Kurland also said the federal government could give priority to those willing to provide a cash donation of up to $225,000 to institutions such as designated Canadian hospitals and universities.

“We could pick the wealthier among the wealthy. With the extra cash, a billionaire from Beijing could be financing the health care of a (sponsored) parent from India,” added Kurland. “It could offset the cost and we could reduce the backlog.”

The idea was rejected by Sponsor Our Parents, a 1,500-member self-advocacy group.

Spokesman Felix Zhang said processing times for parents vary drastically around the world because Ottawa imposes arbitrary quotas by country.

“They are not processed on a first-come first-served basis. In some countries, you wait for 12 months because there are few applications. In other places, you must wait five years,” said Zhang.

“Why should people pay a fee to get something that someone from another country doesn’t have to pay to get?” he added. “This would only cause more unfairness. The rich would be winners and the rest would be losers.”

Jay Bryan: In a grim world, Canada’s a bright spot

BY JAY BRYAN, THE GAZETTE
MONTREAL - The bad news you already know. Canada faces a slow slog economically for the next couple of years, maybe longer, as it fights the headwinds generated by a stubborn global debt crisis.
What you may not know is that in spite of this, Canada is one of the more fortunate countries on Earth in terms of its prosperity and future prospects.
This argument comes from Sherry Cooper, chief economist of the BMO Financial Group – better known as the Bank of Montreal – and she laid out her case persuasively yesterday to a Montreal business group.
“In my opinion, Canada will continue to be a global growth leader,” said Cooper, citing a long list of growth opportunities, from investment inflows to improved competitiveness.
Admittedly, the case for good cheer faces headwinds of its own. Over the past several months, this country has been battered by an economic slowdown and market crash similar to those in the U.S.
But uncomfortable as this has made many of us, the fact is that few Canadians would want to swap places with Americans, Britons or even Germans, whose country is Europe’s economic powerhouse, but where growth is grinding to a near-halt.
All these countries suffer from one or more crippling handicaps that we’ve been lucky enough to avoid in Canada.
Americans are enduring the drawn-out agonies of a housing bust that savaged the wealth of many families and badly damaged the banking system. Now extreme political partisanship is stifling any vigorous effort to stimulate growth.
Europe has its own problems, with widespread housing busts and damage to banks’ solvency, exacerbated by the exposure of enormous unacknowledged debts run up by Greece, the weakest member of the eurozone.
As in the U.S., political gridlock has delayed any effective action to bail out Greece, in this case because 17 sovereign nations must agree unanimously on steps to rescue their shared currency.
With Europe’s government-debt crisis sapping confidence in banks (which have big holdings of government bonds), credit markets are beginning to freeze up, slowing the region’s economy to a near-halt. Some think Europe is already in recession.
By comparison, Canadian home values are still rising briskly, housing construction (which has collapsed in the U.S. and much of Europe) continues to power along and economic growth, while slowing, is nowhere near falling into a recessionary slump.
There’s no struggle to control soaring government debt, as in Europe, the U.S. and Japan, because Canada entered the recession with a very low debt burden. This increased during the recession, but only to a modest degree, making it far easier to rein in today’s deficits.
One striking comparison captures much of this country’s relative prosperity.
In the U.S., a very high jobless rate has inched down only marginally in the 12 months, to 9.1 per cent from 9.6 per cent. Meanwhile in Canada, unemployment was relatively low 12 months ago at eight per cent, and has since fallen sharply to 7.1 per cent.
Some of Canada’s good fortune stems from dumb luck. Our huge resource endowment enables us to profit mightily from the high prices of resources ranging from petroleum to copper to wheat.
But there’s more to it, Cooper noted yesterday. Canada’s financial regulation is far better than most, leaving us with a banking sector widely regarded as the most solid in the world. That’s a key asset for economic growth.
Canada’s high-valued currency – which admittedly can squeeze export profits – is also being used to leverage economic growth. A high loonie makes it cheaper to import the best high-tech industrial equipment and the smartest minds from other countries.
An immigration system that has long focused on attracting valuable skills is serving this country well, as is a quality of life that enables Canada to attract large numbers of immigrants, which creates a growing market.
Even provinces like Quebec, where soaring tax rates and a squeeze on government services is forecast to contribute to a slight rise in unemployment next year (to an average of 7.6 per cent from 7.5 per cent this year), the outlook isn’t too bad, Cooper says.
The Charest government’s focus on controlling government debt is smart, she said. Quebec should come through the current soft spot in reasonable shape, and could do even better with an upgraded education system and a more welcoming atmosphere for immigrants, of which it now attracts very few.
jbryan@montrealgazette.com

Immigration Canada