Friday, March 28, 2008

The naked boom pt. 2

As a postscript to the revelation that public sector employment in Ontario grew 6.6 per cent year-over-year from Oct. 2006 to Oct. 2007 against an 0.2 per cent decline in private sector employment is the latest StatsCan survey showing an astounding 9.8 per cent growth in public sector employment year-over-year from Feb. 2007 to Feb. 2008 and an even greater decline over that same period of 0.6 per cent in the private sector. While over half of new jobs created in Ontario since the Liberal government was elected in 2003 have been in the public sector (225,000 out of about 400,000), the private sector is now shedding jobs in the province.

Taking on the role of "a giant employment services firm," as Jacqueline Thorpe put it in Wednesday's National Post, may help prop up employment figures and, perhaps more importantly, government approval ratings, but it represents a substantial withdrawal on the private sector's ability to invest in jobs to create the wealth that must pay not only for all these new public sector jobs but their typically extravagant benefits and future pension liabilities. Given the reluctance of governments to confront their public sector constituencies with reductions in numbers or privileges, it's also likely to represent a permanent withdrawal.

1 Comment:

Jake said...

If that's not bad enough, government spending ah increased by a third since McFlimsy took over less than five years ago. This amount of spending growth is unsustainable and is bound to create deficits and/or higher taxes.

The chickens will come home to roost sooner or later.