The Canadian Labour Congress is calling on the federal government to abandon spending cuts and invest in workers as Parliament returns and unemployment climbs to nearly half a million more people out of work since 2022.
CLC President Bea Bruske and Senior Economist DT Cochrane warned at a Wednesday morning press conference that Canada’s economy is moving in the wrong direction while working families pay the price.
“The Bank of Canada’s decision today to cut interest rates is a recognition of the pressure families are under, but the move alone won’t fix Canada’s economic challenges,” said Bruske. “Lower rates might provide some relief, but without serious public investment in housing, health care, jobs, and training, Canadians will be left treading water while the government pushes ahead with cuts.”
Unemployment hits vulnerable groups hardest
Youth unemployment is approaching 15 per cent, according to the CLC, while Black and Arab youth face unemployment rates around 25 per cent. The rising cost of living continues to strain families across the country.
“Too many people are working hard and still falling behind,” said Cochrane. “Rent, groceries — everything costs more. But instead of building support systems, the government is reaching for the same old austerity playbook that caused so much harm in the past.”
Union calls for public investment strategy
The labour organization outlined five key areas where it wants the federal government to focus investment, according to the CLC:
- Affordable housing investment
- Public services protection for health care, child care, transit and education
- Employment Insurance reforms so all contributors can access support
- Union jobs creation through public investment and stronger labour laws
- Youth opportunities with access to decent work, training or education
“Nation-building isn’t just concrete and steel. It’s also about a strong safety net, healthcare, housing, and skills training. The stuff that actually makes people’s lives better,” said Bruske.
Private sector pullback concerns economists
Cochrane pointed to recent data showing GDP shrinking and business investment dropping, according to the CLC.
“The private sector is pulling back. That’s exactly when the public sector should step up, not disappear,” he said. “If the government keeps cutting, it’s only going to make things worse.”
Government faces criticism over economic plan
The CLC criticized what it called a lack of clear economic direction from the federal government.
“We keep hearing buzzwords like ‘affordable housing’ and ‘growth,'” said Bruske. “But where’s the plan? Where are the jobs? Who is this economy actually for?”
With nearly 10,000 public service jobs facing cuts and reductions of up to 15 per cent planned across departments, the CLC says workers are being asked to shoulder the burden again, according to the organization.
“Workers didn’t cause this crisis,” said Bruske. “But we’re ready to be part of the solution. What we need from the Carney government is courage. Not cuts.”
