This article has also been published in the November 18th edition of The Hill Times
A Comparative Assessment of the Harper Government’s Job-Creation Record
Since the January 2009 budget it has been difficult to watch Canadian television for more than two hours at a stretch without seeing a self-congratulatory ad for the Harper government’s Economic Action Plan emblazoned with the banner: “Jobs, Growth, Prosperity.” The implied message is that the current government has been far more successful than its Liberal predecessor in creating jobs.
But is that claim true? What are the facts? With the release of October jobs data by Statistics Canada on November 8th, evidence is now available on their job creation record for a period of 93 months since their election in January 2006. How does that record compare to job creation during the last 93 months of Liberal government under Jean Chretien and Paul Martin?
It is not a comparison to be boasting about. In the 93 months between April 1998 and January 2006 (after seasonal adjustment) the number of Canadians with jobs grew by 15.9% and the number with full-time jobs grew by 17.1%. In the 93 months from January 2006 to October 2013 (again after seasonal adjustment) the number of Canadians with jobs grew by 9.8% and the number with full-time jobs rose by 8.9%. That is, the pace of overall job creation has been 38% lower than under the Liberals and the pace of full-time job creation has been 48% lower.
But, the current government might respond, our time in office includes the 2008-09 recession while the last 93 months of Liberal government were recession-free. Aside from the admission that the Liberals were able to avoid recession while the Harper Conservatives were not, this argument implies that governments should bear no responsibility for the effects on employment of recessions which occur while they are in office. The Bennett government got no such free pass during the Great Depression, nor did the Trudeau or Mulroney governments during the recessions of the early 1980’s and the early 1990’s. Why should only the Harper government be accountability-free?
A more plausible excuse for their inferior job creation record might be the demographic argument that a higher share of Canadians is now over age 65 and no longer in the labour market than was the case under the Chretien and Martin governments. To test whether taking this into account makes a difference requires shifting the indicator examined from changes in levels of full-time and total employment to changes in the employment and full-time employment ratios excluding the population 65 and over.
But, if anything, these comparisons are even more unflattering for the Harper government. Between April 1998 and January 2006 the employment ratio rose by 3.5 percentage points from 68.8% to 72.3%. Between January 2006 and October 2013 it rose by only a tenth of a percentage point to 72.4%. The comparison of full-time employment ratios produces a similar result- an increase of 3.5 percentage points from 56.0% to 59.5% under the Liberals compared to no change under the Harper Conservatives.
For young Canadians the Harper government’s job creation record has been worse than feeble. It has been one of actual deterioration compared to a very positive record under the Chrétien-Martin Liberals. From April 1998 to January 2006 the employment ratio for Canadians aged 15-24 rose by 6.1 percentage points from 51.8% to 57.9 and the full-time employment ratio rose by 3.7 percentage points from 28.2% to 31.9%. (Many in this age group are full-time students for most of the year.)Since January 2006 the employment ratio for those 15-24 has declined 2.6 percentage points to 55.3% and the full-time employment ratio has fallen 3.0 percentage points to 28.9%. While the population aged 15-24 rose by 112,600 between January 2006 and October 2013 the number with a job fell by 47,400 and the number with a full-time job dropped by 95,200.
Given these facts, the Harper government should not be all that anxious for the political focus to move away from the Senate follies to their job-creation record. Using taxpayer dollars to buy advertising that makes the implicit false claim that they have been more effective than their Liberal predecessors in creating jobs may be more damaging to them than the much smaller sums Canadian taxpayers paid in the false housing expense claims of Senators Duffy and Wallin.