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Winnipeg Free Press - PRINT EDITION

U.S. ECONOMY: Employment dives, Bush uses 'r' word Loss of 71,000 jobs in one month 'devastating:' Flaherty

By: Staff Writer

Posted: 12/6/2008 1:00 AM | Comments: 0 (including replies)

OTTAWA -- Finance Minister Jim Flaherty on Friday called Canada's loss of nearly 71,000 jobs last month -- 66,000 in Ontario alone -- a "devastating occurrence."

The minister said the Conservative government -- which has been under fire for its handling of the economic downturn -- already has programs to help displaced workers and he promised new measures on Jan. 27, when he is scheduled to bring down a budget.

"Between now and then, we will work and consult with business leaders, labour representatives, the opposition and our international partners to take the necessary, prudent action to protect the Canadian economy," he said.

Liberal finance critic Scott Brison called the response "pathetic," urging the prime minister to recall Parliament, which was shut down on Thursday until Jan. 26.

"Seventy thousand Canadian workers lost their jobs and every one is wondering why Stephen Harper shot down Parliament instead of providing a real plan to Canadians," Brison said.

While many economists had anticipated that Canada's relatively robust labour market would start showing signs of malaise, the consensus expectation was for a 20,000 contraction last month, and even the most pessimistic had projected no more than 50,000.

Canadian Auto Workers economist Jim Stanford was also critical of the parliamentary time out, called by Harper to avoid defeat of his minority government.

Stanford predicted November's job losses will look like small change compared with what will happen if Ottawa lets the auto industry unravel for the next seven weeks.

"We needed a powerful, immediate stimulus program from the federal government two months ago," he said.

-- The Canadian Press

Republished from the Winnipeg Free Press print edition December 6, 2008 B7

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