Ontario targets labour costs in bid to cut deficit • Average weekly earnings up 2 per cent from last year: StatsCan • Canada’s stalled jobs market roars back in March • Total payroll, HR admin costs underestimated by 40 per cent • EI recipients up in January: StatsCan
Ontario targets labour costs in bid to cut deficit
TORONTO (Reuters) — Ontario’s minority Liberal government put corporate tax cuts on hold and pledged a renewed effort to rein in public sector labour costs in an austerity budget designed to eliminate the deficit in six years and convince rating agencies the province is fiscally sound. The province, which accounts for about 40 per cent of the country’s economy, will run a budget deficit of $15.3 billion in 2011-12 under the budget plan unveiled by Finance Minister Dwight Duncan, down $700 million from November’s forecast and below the record $19.3 billion deficit three years ago. The shortfall is seen edging down to $15.2 billion in the coming fiscal year and disappearing by 2017-18. But this requires that the Liberal government, which lost its majority in a hard-fought 2011 election, holds rising health-care costs to just 2.1 per cent annually. This means they must convince powerful public sector unions to accept a wage freeze when contracts with teachers, doctors and other public service workers expire this year. Duncan has faced off against the unions before with only middling success — stymied in part by sympathetic arbitrators. But he pledged this time to rewrite legislation if that is what it takes to control compensation costs that account for over one-half of Ontario’s program spending.
Average weekly earnings up 2 per cent from last year: StatsCan
OTTAWA — Average weekly earnings of non-farm payroll employees were $888.89, up 0.6 per cent from the previous month. On a year-over-year basis, earnings rose two per cent, according to Statistics Canada. The increase in earnings during the 12 months to January reflects a number of factors, such as wage growth and changes in the composition of employment by industry, occupation and level of job experience. Average hours worked per week can also contribute to changes in earnings. In January, the year-over-year growth in weekly earnings was dampened by a decline in hours worked. January was the third consecutive month of year-over-year declines in hours worked. Non-farm payroll employees worked 32.9 hours per week on average in January, down from 33 hours one year earlier. Compared with December 2011, average weekly hours were up 0.1 hours from 32.8 hours, said Statistics Canada. Year-over-year growth in average weekly earnings outpaced the national average of two per cent in five of Canada’s largest industrial sectors: retail trade, construction, wholesale trade, public administration and manufacturing. In retail trade, average weekly earnings were $523.72, up 5.6 per cent in the 12 months to January. Among the largest retail industries, clothing stores, electronic and appliances stores, gasoline stations and sporting goods, hobby and musical instrument stores had the highest growth.
Canada’s stalled jobs market roars back in March
OTTAWA (Reuters) — Canada’s stagnant job market bounced back in March with a stunning 82,300 net new jobs, the biggest jump since September 2008, in a possible turning point for the economy that could put pressure on the central bank to raise interest rates. The job gains, reported by Statistics Canada on Thursday, were spread fairly evenly across several sectors and were mainly in the private sector and in full-time positions. Analysts surveyed by Reuters had forecast, on average, a gain of just 10,000 jobs in the month. The jobless rate in the month dipped to a six-month low of 7.2 per cent from 7.4 per cent, compared with expectations for a rise to 7.5 per cent. Canadian jobs data tends to be volatile month-to-month and policy makers usually like to see the data over several months before declaring a trend. Most of the hiring in March took place in service industries which added 57,500 to payrolls, led by health care and social assistance and information, culture and recreation. The goods-producing sector added 24,900 jobs, helped by manufacturing and construction.
Total payroll, HR admin costs underestimated by 40 per cent
TORONTO — Canadian businesses are underestimating their total payroll and HR administration costs by more than 40 per cent, according to a PricewaterhouseCoopers (PwC) study done in collaboration with ADP Canada. In looking at the total cost of ownership of four core business functions — payroll, time and attendance management, HR data administration, and health and benefits administration — only 37 per cent of the costs to perform business processing are accounted for by business owners, with the balance hidden within their organization, found the study. There are costs that are top of mind, such as system installation and direct labour cost. However, there are also hidden costs such as indirect labour and system maintenance, said Exposing the Hidden Costs of Payroll and HR Administration Accordingly. Many organizations make decisions about technology and sourcing that work best for an individual function, not taking into account the potential synergies and savings that could be achieved with an enterprise-wide solution, said the study. To gain a full picture of costs associated with business processing, organizations should consider the following: system installation and upgrade costs, processing costs (direct and indirect labour, overhead, outsourcing) and system maintenance fees. Using a service provider to manage the payroll function costs 30 per cent less than performing those functions in-house, according to the survey of 125 employers. Those that move to a service provider for multiple functions see even better savings — up to 43 per cent less than in-house.
EI recipients up in January: StatsCan
OTTAWA — The number of people receiving regular EI benefits increased by 12,400, or 2.3 per cent, to 561,100 in January, according to Statistics Canada. The increase returned the number of beneficiaries to about the same level as June 2011.
TORONTO (Reuters) — Ontario’s minority Liberal government put corporate tax cuts on hold and pledged a renewed effort to rein in public sector labour costs in an austerity budget designed to eliminate the deficit in six years and convince rating agencies the province is fiscally sound. The province, which accounts for about 40 per cent of the country’s economy, will run a budget deficit of $15.3 billion in 2011-12 under the budget plan unveiled by Finance Minister Dwight Duncan, down $700 million from November’s forecast and below the record $19.3 billion deficit three years ago. The shortfall is seen edging down to $15.2 billion in the coming fiscal year and disappearing by 2017-18. But this requires that the Liberal government, which lost its majority in a hard-fought 2011 election, holds rising health-care costs to just 2.1 per cent annually. This means they must convince powerful public sector unions to accept a wage freeze when contracts with teachers, doctors and other public service workers expire this year. Duncan has faced off against the unions before with only middling success — stymied in part by sympathetic arbitrators. But he pledged this time to rewrite legislation if that is what it takes to control compensation costs that account for over one-half of Ontario’s program spending.
Average weekly earnings up 2 per cent from last year: StatsCan
OTTAWA — Average weekly earnings of non-farm payroll employees were $888.89, up 0.6 per cent from the previous month. On a year-over-year basis, earnings rose two per cent, according to Statistics Canada. The increase in earnings during the 12 months to January reflects a number of factors, such as wage growth and changes in the composition of employment by industry, occupation and level of job experience. Average hours worked per week can also contribute to changes in earnings. In January, the year-over-year growth in weekly earnings was dampened by a decline in hours worked. January was the third consecutive month of year-over-year declines in hours worked. Non-farm payroll employees worked 32.9 hours per week on average in January, down from 33 hours one year earlier. Compared with December 2011, average weekly hours were up 0.1 hours from 32.8 hours, said Statistics Canada. Year-over-year growth in average weekly earnings outpaced the national average of two per cent in five of Canada’s largest industrial sectors: retail trade, construction, wholesale trade, public administration and manufacturing. In retail trade, average weekly earnings were $523.72, up 5.6 per cent in the 12 months to January. Among the largest retail industries, clothing stores, electronic and appliances stores, gasoline stations and sporting goods, hobby and musical instrument stores had the highest growth.
Canada’s stalled jobs market roars back in March
OTTAWA (Reuters) — Canada’s stagnant job market bounced back in March with a stunning 82,300 net new jobs, the biggest jump since September 2008, in a possible turning point for the economy that could put pressure on the central bank to raise interest rates. The job gains, reported by Statistics Canada on Thursday, were spread fairly evenly across several sectors and were mainly in the private sector and in full-time positions. Analysts surveyed by Reuters had forecast, on average, a gain of just 10,000 jobs in the month. The jobless rate in the month dipped to a six-month low of 7.2 per cent from 7.4 per cent, compared with expectations for a rise to 7.5 per cent. Canadian jobs data tends to be volatile month-to-month and policy makers usually like to see the data over several months before declaring a trend. Most of the hiring in March took place in service industries which added 57,500 to payrolls, led by health care and social assistance and information, culture and recreation. The goods-producing sector added 24,900 jobs, helped by manufacturing and construction.
Total payroll, HR admin costs underestimated by 40 per cent
TORONTO — Canadian businesses are underestimating their total payroll and HR administration costs by more than 40 per cent, according to a PricewaterhouseCoopers (PwC) study done in collaboration with ADP Canada. In looking at the total cost of ownership of four core business functions — payroll, time and attendance management, HR data administration, and health and benefits administration — only 37 per cent of the costs to perform business processing are accounted for by business owners, with the balance hidden within their organization, found the study. There are costs that are top of mind, such as system installation and direct labour cost. However, there are also hidden costs such as indirect labour and system maintenance, said Exposing the Hidden Costs of Payroll and HR Administration Accordingly. Many organizations make decisions about technology and sourcing that work best for an individual function, not taking into account the potential synergies and savings that could be achieved with an enterprise-wide solution, said the study. To gain a full picture of costs associated with business processing, organizations should consider the following: system installation and upgrade costs, processing costs (direct and indirect labour, overhead, outsourcing) and system maintenance fees. Using a service provider to manage the payroll function costs 30 per cent less than performing those functions in-house, according to the survey of 125 employers. Those that move to a service provider for multiple functions see even better savings — up to 43 per cent less than in-house.
EI recipients up in January: StatsCan
OTTAWA — The number of people receiving regular EI benefits increased by 12,400, or 2.3 per cent, to 561,100 in January, according to Statistics Canada. The increase returned the number of beneficiaries to about the same level as June 2011.
