Chinese imports didn’t cause job woes: report
The Vancouver Sun
By Paul Vieira
Cheap Chinese imports cannot be singled out as a “culprit” for employment woes in Canadian manufacturing in the last decade, says a report to be released today on the importance of trade to Canada’s economy.
Research from a Toronto think-tank said data indicate a “very mild” relationship between growth in Chinese imports in a specific sector to job losses during the 2002-2008 period.
A stronger Canadian currency—which rose after a prolonged period of weakness—was likely a bigger factor in determining employment levels in manufacturing, says the report from the Institute for Competitiveness and Prosperity.
“It is difficult to identify China as a ‘culprit’ in Canada’s slumping manufacturing employment,” said the report’s authors. “When it seems like every product we buy is Made in China ... it is only natural to blame [these] countries for the loss of our manufacturing jobs.”
But in reality, the study said, Chinese imports affect a small fraction of the economy.
The sectors doing the bulk of importing from China account for just 2.5 per cent of Canada’s Gross Domestic Product.
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