Pedestrians walk past a Deloitte sign in downtown Ottawa on Tuesday, September 20, 2011. THE CANADIAN PRESS/Sean Kilpatrick

Pedestrians walk past a Deloitte sign in downtown Ottawa on Tuesday, September 20, 2011. THE CANADIAN PRESS/Sean Kilpatrick

Hiring marginalized workers could jump-start economy, boost incomes by $5K: Deloitte

The report, which looks to predict Canada’s economy in 2030, suggests that the country will need more workers

Canada’s economy was headed for slowing growth in the next decade even if COVID-19 had never hit, according to a new report by Deloitte Canada.

The report, which looks at more than 1,000 variables to predict how Canada’s economy will look in 2030, suggests that the country will need more workers — with greater productivity — to get the economy chugging at a fast enough pace to pay for climate change initiatives and government investments without raising taxes.

“We believe Canada is the best place in the world to live and work and do industry. If we continue on our current path, that is compromised or in jeopardy,” said Deloitte Canada chief executive Anthony Viel.

The consulting and audit firm’s report comes as the government is laying out ambitious plans to spur the economy forward after the COVID-19 pandemic — and ensuing lockdown — left a record number of Canadians jobless. Last week’s speech from the throne suggested that the government will look toward clean energy investments, as well as disability and jobless supports, in its recovery plan.

Deloitte Canada did not directly address the throne speech in its report. But the firm predicts even a complete return to pre-pandemic “normal” would cause economic growth to slow to 1.7 per cent per year in the next decade. That’s below the past decade’s average of 2.2 per cent growth — which was already lower than the 3.2 per cent growth in the decade leading to the 2008 and 2009 recession.

Amid a low fertility rate — at a time when the share of Canadians over age 65 is expected to nearly double — Canada needs to be more inclusive of groups that are underemployed in the economy, the report found. Getting marginalized groups better integrated in the workforce can grow the tax base and help the government avoid raising tax rates, said Georgina Black, Deloitte Canada’s managing partner of government and public services.

Deloitte’s forecast suggests that the country could replace its retiring workforce by improving employment options for 88,500 women; 377,300 Canadians over age 65; 700,000 immigrants; 517,657 people with disabilities; and between 38,000 and 59,000 Indigenous Canadians.

The theory, Deloitte’s report said, is that boosting the number of hours worked in the economy would lift the pace of yearly economic growth by 50 per cent, adding $4,900 to Canadians’ average annual income by 2030, Deloitte estimated.

For instance, Deloitte cited a survey suggesting that more than 600,000 Canadians with disabilities said they would look for work if minor workplace barriers were removed.

“Many of these inequalities have worsened during the pandemic, with women and under-represented groups far more likely to become unemployed than men or non-racialized groups,” the report said.

Deloitte suggests companies need better disability accommodations and workplace inclusion policies, and should add childcare as a benefit package, noting that during COVID-19, women’s workforce participation dipped to 55 per cent for the first time since the mid-1980s as childcare options dwindled.

In Deloitte’s ideal recovery scenario, schools would offer better apprenticeship options and retraining programs for older workers in shrinking industries, and governments would invest in rural internet infrastructure and childcare for working parents. Regulators would step in under Deloitte’s plan and allow skilled immigrants to use their foreign credentials and degrees. Canada loses as much as $50 billion each year that could be contributed by underemployed immigrants, the firm said.

Despite requiring the government to spend money and set incentives for employers, Deloitte claims that its proposal would boost government revenues by nine per cent without raising taxes.

“More workers and more incomes means more taxes and more investment,” said Viel.

Canadian businesses also need to invest more in technology and late-stage startups, and Deloitte suggested investments should be focused on a few high-growth industries where Canada can be a leader, such as construction, medical equipment and computer system design.

“Government and business (need to) create the conditions where companies want to invest here and not in another country, ” said Black.

Anita Balakrishnan, The Canadian Press

Coronaviruseconomy

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Crews and volunteers responded to a four-hectare wildfire on the lower half of the Aqam community lands near Cranbrook on Friday afternoon. Trevor Crawley photo.
Wildfire season gets early start in the East Kootenay

Fire crews, volunteers respond to two local wildfires, while prescribed burns turn weekend skies smoky

A conceptual image of a multi-family housing development envisioned by Abugov Kaspar Architects to go on a lot in Castle Mountain in Fernie. (Image courtesy of City of Fernie)
City defers zoning decision

A zoning change would permit a development with 15 percent rental tenure residences in Castle Mountain

Rob and Jennifer King run Sasquatch Cyclery out of their garage. (Soranne Floarea/ The Free Press)
‘Hop on it now’: Parts crunch hits cycling

New bikes are hard to get and used bikes are selling at a premium this year

Michel-Natal-Sparwood Heritage Society runs a museum that was established to display the heritage of the "no-longer towns" of Michel and Natal, and the Elk Valley Area. Photo Submitted/Monica Beranek, Artifact Curator
Sparwood Museum requests a leg up to stay open full-time

The museum is volunteer-run, but needs a full-time employee to be able to snag much-needed grants

Elvira D’Angelo, 92, waits to receive her COVID-19 vaccination shot at a clinic in Montreal, Sunday, March 7, 2021, as the COVID-19 pandemic continues in Canada and around the world. THE CANADIAN PRESS/Graham Hughes
110 new cases of COVID-19 in Interior Health

Provincial health officers announced 1,005 new cases throughout B.C.

In this image from NASA, NASA’s experimental Mars helicopter Ingenuity lands on the surface of Mars Monday, April 19, 2021. The little 4-pound helicopter rose from the dusty red surface into the thin Martian air Monday, achieving the first powered, controlled flight on another planet. (NASA via AP)
VIDEO: NASA’s Mars helicopter takes flight, 1st for another planet

The $85 million helicopter demo was considered high risk, yet high reward

Carver Ken Sheen had almost finished work on a large cowboy carving commissioned by the City of Williams Lake to replace the original overlooking the Stampede Grounds when fire broke out Friday, April 18 at his property between Williams Lake and Quesnel. (Pine River Carving Facebook photos)
Cow boss statue destined for Williams Lake Stampede Grounds goes up in flames

Carver Ken Sheen lost the statue, all his tools and his shop in the blaze

B.C. Labour Minister Harry Bains. (Hansard TV)
B.C. moves to protect employee pay for COVID-19 vaccination

Most won’t need to take time off work, labour minister says

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

New figures show Canadian housing prices outpacing those in other developed countries. (Black Press Media file photo)
Canadian housing prices fastest rising in the world

Relative to 2000, housing prices have risen by a factor of more than 2.5

Russ Ball (left) and some of the team show off the specimen after they were able to remove it Friday. Photo supplied
80-million-year-old turtle find on B.C. river exciting fossil hunters

Remains of two-foot creature of undetermined species will now make its home at the Royal BC Museum

Joudelie King wants to get out and live life to the fullest, but there are places she can’t go because they don’t meet her accessibility needs. (submitted photo)
New online tool provides accessibility map for people with disabilities

The myCommunity BC map provides accessibility info for nearly 1,000 locations in the province

British Columbia’s provincial flag flies in Ottawa, Friday July 3, 2020. THE CANADIAN PRESS/Adrian Wyld
Wildfire fanned by winds near Merritt prompts evacuation alert

BC Wildfire Service says the suspected human-caused blaze was fanned by winds

Most Read