Research Archives - Centre for Future Work

The Build-Big Agenda in B.C. Should Include Long-Term Care Homes

Jim Stanford — Mon, 21 Sep 2026 03:00:21 +0000

British Columbia should make long-term care part of its big-project building agenda and commit to a construction timetable for seven deferred public care projects, says a new report from the Centre for Future Work.

The report examines the economic benefits of building public long-term care facilities, and the dangers and costs of relying on for-profit operators. It argues that full accounting of the costs and benefits of long-term care construction needs to include financing charges (which are much lower for public builds), broader economic spin-offs from new construction, and a range of savings resulting from superior health outcomes demonstrated in public facilities.

Projections indicate the province needs 16,000 additional subsidized long-term care beds over the next decade—about 1,600 a year. But over the last six years, B.C. added an average of only about 240 net new beds annually.

Despite that gap, seven public long-term care construction and redevelopment projects were deferred in the province’s 2026 budget. The provincial government continues to list the projects in its long-term capital plan, but without firm timelines for construction.

The report challenges exaggerated stereotypes about the cost of building public long-term care facilities, and called for more transparent and systematic comparisons of cost estimates. Many public projects include services such as child care, hospice spaces and other services, often accessible to the broader community – making simple per-bed comparisons misleading.

Financing is an important cost advantage for public builds. In an illustrative comparison, the higher cost of private borrowing increases cumulative interest costs by 41 per cent, adding $49 million to a $200 million project over 25 years.

Most long-term care in B.C. receives provincial government funding, regardless of whether a facility is publicly owned, non-profit, or for-profit. Those payments help cover building and financing expenses as well as operating costs. Data published by the B.C. Senior’s Advocate indicates that building costs in private facilities (ultimately charged to the public purse) are much higher than non-profit facilities.

Outsourcing new builds to private operators does not make the public cost disappear. Government still pays for those facilities through decades of care funding.

The report calls for a transparent comparison of construction costs across public, non-profit and for-profit facilities. It identifies ways to improve value in future projects, including using public land, sharing sites with other health services, standardizing designs and coordinating procurement.

It recommends that the provincial government quickly complete its review of the deferred projects, and publish a reliable construction timetable by the next provincial budget. It also calls for capital funding and development support for non-profit providers, alongside a longer-term plan to meet projected demand.

Please see the full report, Economic Benefits from Construction of Public Long Term Care Capacity in British Columbia, authored by Jim Stanford, Economist and Director of the Centre for Future Work.

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B.C. Missed an Economic Opportunity by Importing New Ferries From China, Rather than Building them Here

Jim Stanford — Sat, 19 Sep 2026 01:19:14 +0000

BC Ferries recently announced a purchase of four major new vessels from a shipyard in China. This decision has sparked criticism from trade unions and others, who argue the ferries should have been commissioned from domestic shipyards.

New research from the Centre for Future Work confirms that the decision to import the ferries, rather than domestic procurement, imposed a significant foregone economic cost on the province.

Sourcing an equivalent value of shipbuilding from domestic yards would generate $1.5 billion in additional GDP in Canada (85% of that in B.C.), over 10,000 person-years of employment, and would return over $400 million in additional revenue to government coffers (providing a financial basis for public support for future procurement).

The report reviewed the current scale of shipbuilding in B.C. and Canada, highlighting the strong employment growth in the sector over the past 15 years (largely due to a pro-active procurement strategy for Navy and Coast Guard ships from the federal government). It reviewed the role of active industrial policy in supporting shipbuilding in other major producers – including the U.S., China, and Europe.

It also surveyed the current capabilities of B.C.’s shipbuilding sector, identifying gaps that should be addressed in order to ensure the industry can source future ferry procurement from the provincial ferry operator.

The report concluded with several recommendations, including:

Establish a Ministerial-level task force to coordinate the development and implementation of a robust provincial shipbuilding strategy.
Amend contractual and fiscal arrangements with BC Ferries to require the firm to maximize economic benefits from domestic procurement of future vessels.
Commitment to accelerate the electrification of ferries, and development of B.C. technological and industrial expertise in electric vessels.
Formation of a consortium of firms to organize and plan the expansion of future shipbuilding capacity in B.C.
The provincial government should be prepared to take equity stakes in future ventures.

A strong marine sector workforce development strategy to ensure a steady and adequate supply of skilled workers for the shipbuilding and marine sectors.

Please see the full report, The Economic Benefits of Ferry Construction in B.C., by Jim Stanford, Blair Redlin, and David Fairey.

A video reviewing the main findings of the report, recorded during a public launch event, is available on the Centre for Future Work’s YouTube channel.

The report generated numerous media articles, including:

Newspaper articles in the Vancouver Sun, the Toronto Star, and numerous other outlets.
Television coverage on CHEK TV and other stations.
A feature interview on the Jas Johal Show on CKNW Radio.

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Workers are Especially Exposed to the Economic Risks of Alberta Separation

Jim Stanford — Sat, 19 Sep 2026 01:13:33 +0000

Albertans will vote on October 19 in an unusual ‘referendum on a referendum’, initiated by the Alberta government of Premier Danielle Smith. The referendum asks voters whether they prefer to stay part of Canada, or prefer to initiate a process of negotiation and preparation fo0r a binding referendum on separation some time in the future.

Many economic, business, and civil society leaders have warned of the economic risks and costs of even a significant threat of Alberta independence, let alone outright separation. But working people are especially exposed to those risks, for several reasons: they need employment, they depend disproportionately on federal income supports (like CPP, EI, and the Canada Child Benefit), they depend on unions and labour standards to negotiate their wages, and they are less mobile across borders than investors or high-income households.

The Centre for Future Work has explored the particular risks facing Alberta workers from the separatist movement, in a new report published in conjunction with the Alberta Federation of Labour.

The report challenges several of the myths propagated by the separatist movement – in particular, claims that an independent Alberta would be richer, have lower taxes, and more opportunity to sell products to other countries.

It also reviews several statistical indicators of declining living standards for Alberta workers in recent years. It finds that Alberta workers are quite right to be angry about stagnant wages, falling purchasing power, and growing insecurity in the province – but those problems should not be blamed on a distant federal government. Rather, they result from problems right at home in Alberta, in particular the distorted playing field of labour relations, which has undermined the bargaining power of Alberta workers to negotiate better jobs and wages.

The economic pie in Alberta has been growing: oil and gas production and export set new records every year, and output per worker is the highest in Canada. But labour’s share of that economic pie (in wages, salaries, and benefits) has been shrinking faster than in any other province, and average wages now barely match the Canadian national average.

The report concludes that by defeating the false hopes of separation, workers in Alberta can refocus their rightful anger on the task of reforming Alberta’s labour and economic policies, so that the province’s abundant wealth can be shared more fairly.

Please see the full report, False Promises, Big Dangers: How Separation Would Hurt Alberta Workers, by Jim Stanford, Economist and Director of the Centre for Future Work.

The report generated abundant media coverage, including:

Newspaper articles in the Calgary Herald and the Lethbridge Herald.
Interviews on CBC Radio and 880 CHED.
A feature interview with Ryan Jesperson’s Real Talk video podcast.
A commentary in The Tyee, targeting the myth that Alberta ‘subsidizes’ the rest of Canada.

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Extending Gas Tax Holiday Won’t Fix Fossil Fuel Inflation

Jim Stanford — Wed, 02 Sep 2026 19:56:47 +0000

The federal government has announced it will extend the current holiday on the federal excise tax on gasoline and diesel fuel for another 4 months, until January 31, 2027. New research from the Centre for Future Work confirms that extension will not solve the underlying problem of oil-fueled inflation that is hurting all Canadians, not just drivers.

The tax holiday first came into effect on April 20, and was originally set to end on Labour Day. It was intended to offset some of the impact of rising oil prices (resulting from the U.S.-Israeli attacks on Iran and the closure of the Strait of Hormuz) on Canadian consumers.

While the tax holiday may be appreciated by drivers, it has not addressed the underlying inflationary shock arising from this latest global oil price shock. In fact, Canadian gasoline and diesel prices are higher now than they were before the tax holiday came into effect (and have been higher through most of the 18 weeks since it began). The full value of the tax holiday (to fuel consumers) has thus been more than offset by continued increases in the cost of petroleum products.

New national income data released last week by Statistics Canada confirms Canadian consumers are paying billions of dollars extra for petroleum products despite the cushion from the excise tax holiday. There are also signs that the price shock is spreading into other products beyond petroleum, including air travel, other transportation, and food. This raises the spectre of another spike in broader inflation, sparked by petroleum prices. Statistics Canada data also confirms the petroleum industry in Canada has received record profits as a result of the current oil price shock.

The Centre for Future Work has published a new briefing paper analyzing the latest Statistics Canada data on consumer costs, average prices, and petroleum profits. Highlights include:

There was a large increase in consumer expenses for petroleum products, despite the tax holiday. This includes $3 billion in extra consumer costs for motor vehicle fuels in just three months April through June).
There is a growing gap (called the ‘crack spread’) between prices of gasoline and diesel, and underlying prices for crude oil. This has exacerbated the impact of the oil price shock on Canadian consumers.
There are some early signs of spillover from higher petroleum prices into other prices, and hence into broader inflation – enhancing the risk of future interest rate increases.
The price shock has produced a dramatic increase in profitability for the Canadian petroleum industry, a direct result of the extra costs paid by consumers. Combined after-tax profit in the upstream and downstream sectors reached $23 billion in the second-quarter, more than double their profits in the first quarter.
But just 5% of additional profits, and 2% of additional revenues, have been reinvested by the industry in new capital spending.

The paper concludes with several policy recommendations regarding how Canada can better protect itself against repeated cycles of oil-fired inflation, affordability crises, and higher interest rates.

Please see the full briefing paper, Another Band-aid: Extending Gas Tax Holiday Won’t Fix Fossil Fuel Inflation, by Jim Stanford.

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Workforce Alliances an Opportunity for Canadian Unions to Shape Future Industrial Strategies

Jim Stanford — Thu, 27 Aug 2026 06:50:25 +0000

A new report co-published by the Centre for Future Work and the Canadian Centre for Policy Alternatives reviews six new ‘Workforce Alliances’ being established by the federal government as part of its economic strategy responding to Donald Trump’s trade war. The report concludes that the Alliances have potential to improve training, labour supply, and labour standards – but Canadian unions must be ambitious and assertive to ensure that they fulfil this potential.

The report, Hinge Moment for Canada’s Workforce and Industrial Policy, is based on research presented at the recent Canadian Industrial Relations Association conference at Université Laval in Québec.

The federal government is advancing these new Alliances to strengthen the labour side of major new investment and industrial policies. Somewhat reminiscent of the previous tripartite era of sector councils from the 1990s, unions are once again being invited to participate.

Ottawa has announced six Workforce Alliances, which largely mirror the government’s industry, energy and transportation infrastructure initiatives. On a parallel track, a historic $6 billion funding stream to support Red Seal skilled trades training has also been launched.

Unions have ample experience with supply-side training programs. Too many have focused solely on meeting the labour supply needs of employers, with limited benefits for workers and no opportunity to build union power. Could this iteration of workforce policy be an opportunity for the labour movement to do better? Does it create an opening to influence industrial policy, labour standards and worker rights?

At a special panel during the 2026 conference of the Canadian Industrial Relations Association (CIRA) at Université Laval in June, union experts and labour studies academics came together to review the Workforce Alliances and their associated training initiatives, and examine the opportunities for genuine trade union engagement.

The presentations to the CIRA conference are collected in this compendium. The goal is to start a bigger discussion among trade unionists and progressive researchers about a labour strategy that links workforce policy with labour standards and conditionalities across the industries and sectors receiving federal funding, including a larger role for unions in shaping industrial policy.

Several common themes emerge from the contributions collected here. First, workforce policy cannot be reduced to labour supply measures aimed solely at meeting employers’ skills needs. Second, sectoral institutions and public investments must be linked to stronger labour standards, worker retention and equitable employment outcomes. Finally, the Workforce Alliances raise broader questions about industrial governance and whether unions can use these new institutions to exercise meaningful influence over economic strategy and democratic decision-making.

Fred Wilson’s introduction traces the evolution of workforce policies from the old sector councils, to industry-led labour market information programs and now back to partial joint governance in the Workforce Alliances. In each case, the primary purpose has been to provide “labour market information,” or LMI, and training programs to meet employer needs. Yet, in this latest version of workforce policy, to meet the government’s promise of “not just jobs, but careers” will require going well beyond the LMI model. Labour’s goals in the new workforce policies must address sector and industry-based standards and industrial policies that create and sustain high-quality, value-added jobs.

Ken Delaney, the managing director of the Canadian Skilled Trades Employment Coalition (CSTEC), Canada’s longest-standing “sector council” model, speaks to the limits of the former sector councils that were confined by government agendas. CSTEC’s work highlights the promise of workforce programs to address worker transition, equity and inclusion, especially if workers are allowed to maintain EI benefits in training. The organization’s programs also demonstrate how the career-building potential of Red Seal training can be adapted to meet the needs of skilled workers in manufacturing and other sectors. Delaney encourages unions to seize the opportunity in the Workforce Alliances to integrate industrial policy with labour market policy.

Professor Evelyn Dionne’s study of the construction sector in Quebec warns that sector programs to increase labour force supply and speed up construction can lead to “a downward spiral marked by declining skill levels, lower-quality housing, inefficient green buildings and high turnover.” Dionne calls for project labour agreements (PLAs) to be incorporated into housing and construction projects in order to establish common and high-quality terms and conditions governing all workers and contractors. “By embedding training, equity and labour standards into procurement processes,” she writes, “PLAs can help ensure that accelerated construction does not come at the expense of quality or working conditions.”

After pressure from within the Liberal caucus, reinforced by advocacy from social policy and feminist advocates, the federal government agreed to establish a Workforce Alliance for the care economy. Laurell Ritchie, a member of the Care Economy Initiative, emphasizes that in the care economy, worker retention is as important as recruitment. Like industrial sectors, meeting workforce goals in the care economy will require sector-based programs and standards, and strong government leadership. The inclusion of the care economy among the Workforce Alliances is itself recognition that industry and workforce policy can be influenced by advocacy from unions and women’s organizations.

Unifor Research Director Angelo DiCaro’s contribution on the interrelationship between industrial policy and workforce policy underscores the need for the state to act as a “conductor” of a complex orchestra involving multiple public and private players. A weak state role leaves the government as a passive enabler of the private sector, resulting in “industrial improvisation” rather than industrial strategy. For the Workforce Alliances to make a real difference, they must go beyond workforce development—filling vacancies, and sponsoring training—to become well-rounded tables for “peak-level social dialogue” with “a whole-of-supply-chain approach” to labour standards and industrial growth.

As DiCaro aptly puts it, the Workforce Alliances could be “a vital cog in the wheel of industrial growth and rising workplace standards.” Alternatively, they could become an “unambitious and burdensome exercise, simply facilitating training fund transfers, and entirely delinked from future-facing industrial strategy.”

Prime Minister Carney has described this as a “hinge moment” for Canada, as Canadians collectively face up to the unprecedented threat posed by Donald Trump and aggression from Washington. It is also a hinge moment for labour. The potential reorientation of Canada’s economy away from deep dependence on U.S. export markets, with a greater role for active industrial policy and public investment, carries both opportunities and risks for unions and the workers they represent.

The Workforce Alliances are an opportunity for unions to shape this historic economic moment, leveraging workers’ position at the point of production to demand both material progress and democratic power as this pivot unfolds. Canada’s unions must demonstrate that they have the organizational capacity and political leverage to bring a working-class agenda to the Workforce Alliances, and help to shape this new era of industrial policy in favour of workers.

Please see the full paper here.

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Health Care is an Economic Engine, not Just a Cost Item

Jim Stanford — Mon, 10 Aug 2026 18:56:42 +0000

Canada’s public health care system, which provides essential health services without regard to ability to pay, is one of our most cherished social achievements. Indeed, public opinion polls consistently show that medicare is the single feature Canadians most associate with our national identity. Support for universal public health care is thus an important element of Canadians’ response to the challenges to our economy and sovereignty posed by U.S. President Donald Trump.

However, the medicare system is under threat from inadequate funding, long wait times for some services, and ongoing pressure from investors to privatize services. In Alberta, new laws allow parallel private provision of key health care services (including diagnostic tests and some surgeries). Other provinces (such as Ontario) are also pushing privatization. Always underlying privatization efforts is the claim that Canada simply cannot ‘afford’ the big costs of the public health care system.

At the recent summit meeting of Canadian premiers held in Charlottetown, P.E.I. in July, premiers discussed the challenges of financing health care and called on the federal government to hold a national summit on future health funding. At the summit, Centre for Future Work Director Jim Stanford made a presentation to the premiers on the economic benefits of public health care. He stressed that health care ranks as one of the most important industries in Canada: it creates jobs, generates incomes, supports widespread economic spillovers, and is one of Canada’s leading sources of innovation and new technology. These benefits have to be considered alongside the costs of providing essential health services.

Here is the presentation which Stanford gave to the premiers. It drew on findings from a recent report Stanford prepared for the Canadian Federation of Nurses’ Unions, titled The Economic Benefits of Canada’s Public Health Care System. The report quantified the important ways in which public health care supports employment, incomes, economic growth, and government revenues. Seen this way, health care should be redefined as an investment—not just a cost item on provincial budgets.

Key findings from the report include:

Health care is one of Canada’s largest and most dynamic industries.
It employs 1.9 million waged or salaried employees, and hundreds of thousands more self-employed practitioners, specialists, and contractors.
Health care production accounts for about 8% of Canada’s total value-added (GDP), and over 10% of total employment.
Health care workers earn $120 billion per year in wages and salaries.
The health care system purchases $51 billion worth of supplies and inputs from a complex and far-reaching supply chain (composed mostly of private businesses).
Health care accounts for over $7 billion in annual research spending, the second highest of any Canadian industry.
Because health care is not highly integrated in international trade, it is relatively protected from global disruptions and shocks (like the effects of U.S. trade policies).
Universal access to quality health care unlocks many other economic benefits including: more flexible labour markets (workers are able to change jobs without fear of losing health coverage), enhanced longevity and well-being (supporting more labour force participation and higher productivity), and improved ‘social capital’ (safe and inclusive communities where interactions can occur more securely and efficiently).

In sum, health care cannot be understood solely as a ‘cost.’ It is also a powerful economic engine: a source of growth, jobs, incomes, tax revenues, and well-being. Understanding and appreciating the economic benefits of the universal public health care system can reinforce public and fiscal support for its maintenance and improvement.

Please see the full report here.

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Iran War, Soaring Prices Drive Record Oil Profits

Jim Stanford — Thu, 06 Aug 2026 20:20:42 +0000

U.S. President Donald Trump’s misguided war against Iran has caused another shock in global oil prices – the 14^th such shock in the last half-century. World oil prices rose 50% or more after the war started, and have stayed high despite Trump’s repeated promises to stop the war and reopen the Strait of Hormuz. These price increases are is driving massive increases in profits for petroleum companies around the world – including Canada.

Canada produces three times more oil than it consumes. And while Canada imports small amounts of oil to the eastern provinces, almost none of that is sourced from the Persian Gulf. Hence there is no significant impact of the war on our domestic supply volumes or costs.

Nevertheless, because of a policy choice to tie domestic oil and petroleum product prices to global benchmarks (allowing oil producers to charge Canadians world prices for their own oil, on pain of diverting supply to more lucrative foreign markets), Canadian petroleum prices have soared in tandem.

The combination of sky-high prices with stable production costs is producing a profit windfall for Canadian petroleum companies. This is confirmed by the recent release of financial reports by publicly-traded Canadian oil companies for the second quarter of 2026.

The table below summarizes after-tax earnings and other metrics for the four largest publicly-traded Canadian producers. Their combined revenues (net of royalty payments) grew almost 50% in the April-June period, compared to the year-earlier period, thanks to the effect of Trump’s war on world prices.

After-tax profits rose more dramatically, since production costs remained largely unchanged. After-tax profits at the big four more than doubled: rising 144% compared to the second quarter of 2025, reaching a combined total of $13.3 billion. That’s almost $150 million per day in after-tax profit over the three-month period.

These four companies represent only a portion of the Canadian petroleum sector. Financial results for many companies (including wholly-owned subsidiaries of foreign oil companies) are never publicly reported. However, Statistics Canada publishes helpful financial data on an industry-wide basis. That data for the second quarter of 2026 will be released later in August.

Extrapolated to apply to the broad Canadian petroleum sector (upstream and downstream), the big four’s results suggest that second-quarter industry-wide profits could reach $30 billion (up from $12.6 billion in the second quarter of 2025). Canadian oil profits for the full year could reach $100 billion. That would set a new all-time record, smashing the peak $68 billion after-tax profit the industry recorded in 2022 (when oil prices were similarly shocked following the Russian invasion of Ukraine).

What are the oil companies doing with this record profit flow? There is no robust pattern of reinvestment in new Canadian projects. In fact, excluding acquisitions of other companies and properties (which does not represent an increase in real investment), capital spending by the big four companies actually declined slightly in the second quarter (compared to the year earlier period).

Instead, their main priority is to pay out so-called “excess cash” to company owners, in the form of increased dividend payments and share buy-back programs. Companies buy back their shares as a way of boosting share prices (this benefits company executives, too, through share-based compensation systems). The four majors spent over $6 billion on share purchases and dividend payments in the second quarter, up by almost $2 billion from like period 2026.

Hopes that booming oil profits will lead to new investment and jobs in the petroleum sector are being dashed by the priority these firms are placing on cash payouts, rather than reinvestments.

But the combination of record profits and rapid share buybacks has been great for company owners. Share prices at the big four majors have increased by an average of 45% since the start of the year. Most of those gains are captured by the wealthiest minority of the population. Other Canadians experience only higher costs and declining real incomes.

Research on the distribution of global oil profits during the 2022 price spike confirms that each oil shock further redistributes income upward. Global oil profits almost doubled that year, to nearly $1 trillion (U.S.). In the U.S., 50% of those gains were received by the richest 1% of the population; the bottom 50% of the population got almost none. A less extreme, but similar, pattern prevails in Canada.

In the meantime, oil-fueled inflation remains a threat to living standards and economic performance for most Canadians – those who do not own significant equity holdings in oil companies. Inflation has increased again in Canada since the Iran war started (just as it did in 2022 after the oil shock accompanying the invasion of Ukraine).

Spillover price increases for other goods and services (whose costs of production also increase due to high petroleum prices) will amplify inflationary pressures. And if the Bank of Canada responds with higher interest rates (as it will if above-target inflation persists), Canadians will be punished further with higher interest costs, on top of sky-high gasoline prices and faster broader inflation.

The current oil price shock, just the latest in an ongoing pattern of global price volatility, confirms that fossil fuel prices are the greatest threat to affordability and living standards for Canadian workers and consumers. Please follow the Centre for Future Work’s False Profits project for more details on the impact of oil prices on prices, real wages, and inequality in Canada.

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New Research Shows National Child Care Plan Already Driving Economic Benefits In Ontario

Jim Stanford — Tue, 28 Jul 2026 04:33:57 +0000

The Centre for Future Work has co-published new research quantifying the economic and fiscal benefits being generated in Ontario from the new Canada Wide Early Learning and Child Care program.

The expansion of affordable child care services in Ontario resulting from that new program has delivered a substantial economic boost to the province. That boost would have been even stronger, if the provincial government had not lagged behind other provinces in implementing the new national program.

The report finds that Ontario’s GDP in 2024 was $13.6 Billion higher than it would have been without the expansion of child care since 2019.

That growth in GDP generated approximately $2.25 Billion in extra provincial revenue in 2024 alone. This amount slightly exceeded the provincial funding to child care that year, indicating the program effectively pays for itself through increased economic activity.

Job Creation: Over 17,000 new jobs have been created in Ontario’s child care sector since 2019, with total sector compensation expected to exceed $3 Billion in 2026.

Empowering Women in the Workforce: Core-age (25-54) female labour force participation in Ontario increased by two full percentage points between 2019 and 2026—outpacing the national trend. This shift, combined with more women moving from part-time to full-time work, added 81,500 full-time-equivalent workers to the provincial economy.

Improved Job Quality: Average weekly earnings for child care workers rose by 39% since 2019, while average weekly hours increased from 26 to 31.

“Affordable, quality child care services are a vital precondition for economic progress,” says Jim Stanford, author of the report and Director of the Centre for Future Work.

“The data confirm that even Ontario’s partial and inconsistent rollout of the national program has been an economic boon. However, the province is leaving billions of dollars in potential growth on the table by failing to meet its targets for new spaces and lower fees”.

The report comes as the Ford and Carney governments continue to negotiate a new child care agreement.

Despite economic gains, the report highlights significant concerns regarding the Ontario government’s commitment to the Canada-Wide Early Learning and Child Care program. Ontario’s current child care agreement is set to expire in March 2027, and Ontario remains 25% behind its target for creating new spaces for children under six. Furthermore, while the national goal is $10aDay, daily CWELCC fees in Ontario currently average $19 with a cap of $22. The report also criticizes the province’s heavy reliance on for-profit providers—accounting for 44% of full-day spaces—which research associates with lower quality of care and higher staff turnover.

The report was co-published with the Ontario Coalition for Better Child Care and the Association of Early Childhood Educators Ontario.

The report concludes with urgent recommendations for the Ontario government, including securing long-term funding through 2031, eliminating “child care deserts,” and fulfilling the $10aDay affordability promise.

“If Ontario fails to fully commit to a universal system, these historic economic gains will be squandered,” added Stanford.

Please see the full report here, and a one-page summary of its key findings.

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Senate Testimony on the Canadian Economic Outlook

Jim Stanford — Tue, 16 Jun 2026 18:21:12 +0000

Centre for Future Work Economist and Director Jim Stanford was recently invited to testify before the Senate of Canada’s National Finance committee, regarding the economic and fiscal outlook for the country. The testimony was part of the committee’s hearings regarding certain aspects of budget implementation (including measures announced in the recent Spring Economics and Fiscal Update).

Below are Stanford’s opening remarks. He touched on several issues, including the need to diversify the product composition of Canada’s exports in the wake of Donald Trump’s tariffs, issues related to the proposed new Sovereign Wealth Fund announced by Prime Minister Carney, and the macroeconomic and distributional impacts of the latest spike in global oil prices (resulting from the U.S. attacks on Iran). Questions to Stanford from committee members included the sovereign wealth fund, the risks of privatizing airports and other public assets, and the challenges facing the auto industry. A Hansard record of the full hearing is available here.

Opening Remarks Senate Standing Committee on National Finance Bill C-30 Hearings, May 27, 2026

By Jim Stanford, Economist and Director Centre for Future Work

Thank you very much, Senators, for the opportunity to meet and share my views on Canada’s economic and fiscal situation as you discuss issues related to the federal budget.

The Centre for Future Work is a labour economics research institute, founded in Canada in 2020. We conduct research on the full range of economic issues facing working people: including the future of jobs, wages and income distribution, skills and training, sector and industry policies, globalization, the role of government, public services, and more. The Centre also develops timely and practical policy proposals to help make the world of work better for working people and their families. The Centre is independent and non-partisan.

Today I will present short comments on three economic issues of relevance to implementation of measures announced in the spring fiscal update, and related processes:

Diversifying Trade, Composition as Well as Destination: Donald Trump’s tariff policies and other trade attacks have posed a historic threat to Canada’s export industries. Most vulnerable are the higher-tech value-added industries that have been deliberately targeted by his Section 232 sectoral tariffs: including auto, steel, aluminum, and forestry. Further sectoral tariffs are possible given other investigations he has launched, including on aerospace, industrial machinery, semiconductors, and pharmaceuticals. Diversifying the end destination of our exports is a logical response to this challenge, and the federal government has pursued several opportunities in this regard. But there is another, equally important priority that must also be kept in mind as we traverse this challenge: diversifying the composition of our exports. In other words, what we sell is just as important as where we sell it. Canada has had some initial success in growing exports to other markets. By the fourth quarter of 2025, only two-thirds of our merchandise exports were to the U.S., down from three-quarters only a few years ago. That progress is fragile, however, dependent on cyclically high prices for gold, oil, and some other resource projects. At the same time, Canada’s dependence on exports of unprocessed or barely processed resource products – or ‘staples’, as they are often known in Canadian economic history – has been growing. Basic resources accounted for half of Canada’s merchandise exports last year, up from one-fifth at the turn of the century. Revering to a pure resource supplier – a ‘hewer of wood, drawer of water’ in the classic phrase – will not protect Canada’s economic sovereignty. We must preserve the capability to produce a full range of goods and services, including higher-technology value-added products. This goal should be front and centre in Canada’s emerging industrial policy strategy for responding to the threat from the U.S.

Sovereign Wealth and the Public Interest: Concurrent with the spring fiscal update, Prime Minister Carney recently announced his government’s intention to create a new sovereign wealth fund, that would invest in various projects with the intent of stimulating desired new economic activity, strengthening the structure of Canada’s economy, and accumulating public wealth over time. This is an interesting proposal with both opportunities and risks. Successful examples of sovereign wealth funds exist around the world. In general, the goal is not solely to accumulate and invest budgetary surpluses; most sovereign funds have a mandate to wield public capital in the interests of economic diversification or the qualitative development of the domestic economy. On that score, the fact that Canada’s fund is likely to be initially endowed with borrowed funds (rather than accumulated budget surpluses, which do not exist right now at the federal level) is not the critical issue. However, it will be important to correctly specify the mandate and governance structure of the new fund. In my judgment, the goal should be to foster investment and growth in strategic value-added industries that add to the breadth of capabilities of the Canadian economy, and help to address the composition challenge I mentioned above. I am worried by Mr. Carney’s reference to ‘asset recycling’ in his initial discussion of the idea, through which the government would potentially sell of existing public assets (reportedly including airports and ports) in order to subsidize other projects. This is a dangerous model that risks undermining the public interest in continued ownership of those vital assets. The goal is not to ‘recycle’ public wealth, but to build it over time (and enhance our economic capacities in so doing), and the new sovereign fund should be structured and managed with those public interests as its top priority.

The Latest Oil Price Shock: An already uncertain macroeconomic environment has been further disrupted by Donald Trump’s attack on Iran, the resulting closure of the Strait of Hormuz, and a global shock in oil prices. This will have negative effects on Canada, even though we are a major net exporter of oil and import virtually no oil from the Persian Gulf. Our Centre recently published a report estimating the impact of this oil shock on consumer costs and future inflation, based in part on the documented experience of the last oil shock (in 2022, after the Russian invasion of Ukraine). We considered three broad scenarios: one in which the Strait reopens immediately, one in which it remains closed for three more months, and one in which it remains closed for six more months. In any of these cases, supply disruptions and high prices will last for months after the Strait reopens, due to delays in loading and transporting shipments from the Persian Gulf, damage to export infrastructure from the war, and lasting shifts in expectations and risk premiums built into world prices. Even with immediate reopening, Canadian consumers would pay an additional $50 billion in direct and indirect costs over a 12-month period starting with the outbreak of the war at the end of February. The inflation rate would rise above 4 percent. If the Strait remains closed for longer, those costs escalate, and inflation could rise to 6 percent or higher. In turn, that will lead to higher interest rates and slower growth – on top of the existing weakness in Canada’s economy from the trade war. This disruption is the last thing Canada needs right now, and in my view it highlights important policy considerations. Having core energy prices in Canada set on the basis of volatile fluctuations in global futures markets, with no connection to Canadian production, supply, and demand conditions, exposes us to unnecessary risks. We should have a conversation in Canada about other ways to manage petroleum prices (noting that we already regulate electricity prices and gas distribution charges, which have remained stable despite the global oil chaos), and other ways to manage inflation (rather than relying solely on across-the-board interest rate hikes to suppress inflation of any kind, no matter its cause). I would also support fiscal measures to redistribute some of the record revenues that are now flowing to the petroleum industry as a result of this latest price shock – and which partly reflect excess costs paid by Canadian consumers. An excess profit tax, modeled on the one applied to Canadian banks and insurance companies during the pandemic, could recapture some of that revenue windfall, and use it to finance rebates to Canadian consumers and investments in renewable energy infrastructure (which are ultimately the best way to disengage from the volatility of world oil fluctuations). Bill C-30 includes measures to reduce federal excise taxes on gasoline and diesel in response to this price shock; asking the petroleum industry to contribute to the cost of that relief seems both fair and efficient. The full report which I reference, titled ‘A Sequel We Don’t Want: What the 2026 Oil Price Shock Will Cost Canadians,’ is available at www.centreforfuturework.ca.

Thank you again for your attention, and I look forward to any questions or discussion.

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A Sequel We Don’t Want: What the 2026 Oil Price Shock Will Cost Canadians.

Jim Stanford — Mon, 18 May 2026 06:59:33 +0000

The war in the Persian Gulf has caused the biggest disruption in oil supply in world history, and is driving up costs and inflation around the world – including in Canada.

New research from the Centre for Future Work, published through the False Profits project, shows how damaging this latest oil shock will be for affordability and inflation in Canada. It also proposes policies to protect consumers and workers.

The numbers are grim: The report predicts $50 billion in additional consumer costs over a 12-month period, and inflation jumping to 4.2%, even if the conflict ended and the Strait of Hormuz reopens tomorrow.

If the Strait remains closed for longer, the impacts on consumers will be much worse. Three months of additional closure would double the hit to Canadian consumers (to $100 billion), and push Canadian inflation to 6.9%.

The study also estimates the windfall revenue gains flowing to Canada’s petroleum industry from the war. Upstream oil revenue will soar by $65 billion over 12 months, even if the Strait reopens immediately. Under a longer closure, the industry’s revenue would increase by up to $155 billion, reaching almost $400 billion in total over the 12-month period.

The report advocates measures to stabilize oil prices within Canada (since Canada produces almost three times as much oil as it consumes, and production costs at home are unaffected by the Persian Gulf conflict), redistribute record petroleum profits back to consumers, and accelerate the transition to renewable energy sources.

Please see the full report, A Sequel We Don’t Want: What the 2026 Oil Price Shock Will Cost Canadians.

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