Quebec earns mediocre grade in prosperity, wealth creation

Integration of immigrants, payroll taxes, labour laws need improving
|hrreporter.com|Last Updated: 09/22/2010

Despite some positive results — particularly in terms of university graduation, taxation on business investment and spending on research and development — Quebec will have to exert much greater effort if it wishes to create more wealth and take the road to prosperity, especially with respect to the economic integration of immigrants, payroll taxes, labour laws and public debt.

That’s according to the first Report Card on Quebec Prosperity by the Quebec Employers Council which gave the province a “C" grade.

"These results cannot be attributed to a government or political party but rather to a society that, after achieving gains, advances and successes, has failed to institute the best possible conditions for prospering sustainably in a context of worldwide competition," said council president Yves-Thomas Dorval. "The issue here is all the most important when we take account of the quicker pace of demographic aging over the coming years."

The report card compares Quebec's performance with those of three other Canadian provinces (Ontario, Alberta and British Columbia) and member countries of the Organization for Economic Cooperation and Development. It is based on 20 indicators grouped in five "determinants of prosperity" that embody the council's priority areas — the quality and availability of labour (including education levels, job-related training, economic integration of immigrants), the cost of human capital, regulation, public finances and the business environment. The evaluation is based on empirical data from the study for each indicator and each determinant as well as an average overall grade.

Summary

#

Indicator

Rank among four provinces

Rank among provinces and OECD countries

Grade


Availability and quality of labour



C

1

Percentage of young adults
lacking a high school diploma
and not attending school

4/4

4/4

D

2

Percentage of the adult population lacking a high school diploma

4/4

12/33

B

3

Rate of undergraduate degrees

2/4

2/4

B+

4

Rate of post-secondary education among adults

3/4

4/34

A

5

Proportion of adults
who have taken job-related training

4/4

4/4

D

6

Participation rate of older workers

4/4

20/34

C

7

Economic integration of immigrants

4/4

4/4

D


Cost of labour



C

8

Employers' cost of payroll taxes

4/4

4/4

D

9

Minimum wage as a proportion
of the median wage

4/4

11/23

B


Regulation



D

10

Orientation of labour laws

4/4

4/4

D

11

Average number of documents produced per company

4/4

4/4

D


Public finances



C

12

Marginal effective tax rate on capital

2/4

10/23

B

13

Tax burden

4/4

25/34

C

14

Debt level

-

26/30

D


Business environment



C

15

Average age of public infrastructure

3/4

3/4

C

16

Entrepreneurial intensity

4/4

4/4

D

17

R&D spending

1/4

7/33

A

18

Patents on inventions

4/4

8/11

C

19

ICT investment

3/4

3/4

C

20

Multifactor productivity

-

13/20

C


Average



C

Add Comment

  • *
  • *
  • *
  • *