I recently posted that the black horse driving Canada’s economy is weapons exports. It is a black horse because it is little known and I suspect it might even have caught local and regional governments off guard. Otherwise traditional aspects of Canada’s economy is doing the same yet there has been a population explosion and a work participation explosion. Such that people might be forgiven for getting into debt thinking they will find opportunities outside the weapons industry.
Charts from Trading Economics.
Employment has not grown. “Employment Change” is practically zero, Full Time Employment has fallen as has Part Time Employment.
Loans to the Private Sector has risen. Private Debt to GDP has skyrocketed meanwhile the Interest on your savings has dropped. Household Debt to GDP has also skyrocketed and Household Debt to Income has been a big portion of income for the last few while.
The Population has steadily risen and there are spikes in the work force participation — as if workers come and go after spurts in opportunity.
Imports, our use of foreign goods, is greater than our exports, their use of our goods. Our debt to foreign businesses or countries has risen.
Labor Costs has risen along with Productivity while Wages has fallen. Meaning the burden of each worker on the country has gone up while their Pay has gone down and it might be because of the spurts in employment — in between these opportunities workers rely on unemployment assistance to make ends meet.
The one industry that has changed has been Weapons Sales, every other industry is doing well with little change.
Students are graduating and perhaps more are entering the work force after high-school. University graduates in prized fields like Engineering are experiencing 33% unemployment and it might be for all highly tuned fields including the Arts. Areas of the economy doing well are traditional sectors of Construction, Natural Resources, Public Administration, Finance and Real-Estate. Canada is “overloaded” with people. The most telling of this is GDP per Capita is the same even “if” there is any sign of incremental growth. And the rise in GDP From Manufacturing might be from more Weapons Sales which has little impact on most workers.
Somewhere in Canada, it is practically a proven truth that when you miss the point, you’ll drown in your pursuit of the wrong thing.