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

(File photo)
BCCDC reports new COVID-19 case on Kelowna flight

WestJet flight 182 from Kelowna to Calgary had a case of COVID-19 on board Oct. 10

Advance voting is already underway in the 42nd general election in British Columbia. Election day is Oct. 24.(Black Press files photo)
QUIZ: Are you ready for the B.C. election?

Take this short test and see how much you know about elections and voting

On a tour through B.C.’s interior on Oct. 17, John Horgan visited Penticton today, talking with supporters and volunteers. (Phil McLachlan - Kelowna Capital News)
Childcare, healthcare hot topics during John Horgan’s Penticton visit

The NDP government today pledged $2.9 million to provide 116 full-time childcare spaces

The Lake Country Fire Department is mourning the loss of Karl Featherstone who died suddenly at 47 years old on Oct. 11. (Photo Submitted)
Lake Country Fire Department mourns sudden death of firefighter

47-year-old Karl Featherstone died on Oct. 11.

In this photo provided by Shannon Kiss, smoke from the CalWood Fire billows, Sunday, Oct. 18, 2020, as seen from Gunbarrel, Colo. (Shannon Kiss via AP)
‘First guys out:’ western Canadian air tanker fleet busy despite drop in wildfires

CEO believes wildfires have become more dangerous in recent years as people live closer to where they start

(Black Press Media files)
B.C. suburbs could see increased demand for rental units as people work from home

Vancouver’s average monthly rent is the highest out of 35 cities across Canada

Fort St. John councillor Trevor Bolin (B.C. Conservative Party)
BC Conservatives leader fights back after BC Liberals leak 2018 workplace harassment case

Sexual harassment case was connected to employee being terminated, WorkSafeBC found

The BC Ferries vessel the Queen of Oak Bay. (News Bulletin file photo)
‘Buy a boat,’ Horgan advises anti-maskers on BC Ferries

NDP leader John Horgan talks COVID-19 misinformation

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

Canadian and American flags fly near the Ambassador Bridge at the Canada-USA border crossing in Windsor, Ont. on Saturday, March 21, 2020. Restrictions on non-essential travel between Canada and the United States are being extended until at least Nov. 21. THE CANADIAN PRESS/Rob Gurdebeke
Non-essential travel restrictions at Canada-U.S. border extended to at least Nov. 21

The restrictions do not apply to those providing essential services in either country

Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

(Phil McLachlan - Capital News)
UPDATE: Abandoned Kelowna heritage building fire deemed suspicious

The building sustained major fire damage to the exterior and roof area

Vernon Fire Rescue Services and Vernon-North Okanagan RCMP were called to a report of an electrical fire at the temporary shelter operated by Turning Points Collaborative Society on 37th Street Sunday, Oct. 18, just before 5:30 p.m. A fire was discovered in the building’s attic, forcing the evacuation of temporary residents and staff. (Roger Knox - Morning Star)
Reported electrical fire evacuates Okanagan temporary shelter

No visible smoke or flame but Vernon firefighters discover small blaze in former warehouse’s attic

Most Read