By Lee-Anne Goodman, The Canadian Press
OTTAWA - The Harper government's $550-million small-business job credit will create just 800 net new jobs in 2015-16, while a freeze in employment insurance premiums could cost the economy 10,000 jobs over the same period, Canada's parliamentary budget office says.
The latest report from the budget office, released Thursday, says the credit will create a total of about 1,000 "person-years" of work at a cost of $555,000 for each person-year. A job that employs a worker for two years amounts to two "person-years."
The report also says that because EI premiums are frozen at higher levels than necessary to offset the costs of the job credit, thousands of jobs could be lost.
"PBO estimates the premium rate freeze will reduce full-time equivalent employment by 2,000 jobs in 2015 and a further 8,000 jobs in 2016," the report said.
Starting next year, the job credit will effectively lower EI premiums for small businesses with annual contributions of less than $15,000.
Critics of the measure have complained the government should have gone further with a direct cut in premiums that would provide an immediate benefit to all businesses and employees.
That broader slash to payroll taxes isn't happening until 2017, the government says.
The Conservatives haven't said why they're waiting for two years to implement that cut; the PBO report says EI premiums are currently 13 cents above the break-even level and will be 28 cents above the break-even level in 2016.
To read the full story, go to: https://ca.finance.yahoo.com/news/conservative-changes-ei-could-cost-canada-jobs-budget-031008832.html
No comments:
Post a Comment