Is the B.C. Liberal job creation claim ‘political spin’? – British Columbia

It’s become the centrepiece at almost every campaign stop Christy Clark makes during this 2017 election campaign: Clark’s claim that under the B.C. Liberals, the province leads the country in job creation.

Her whistle stop in Dawson Creek on April 18 was typical. “We are the only party…with a plan to create jobs.”

Clark boasted the Liberals had created 220,000 jobs in British Columbia “since we started the Jobs plan.”

That plan was announced back in September 2011 to protect and create more jobs in the province.

But does Clark’s claim stand up to a CBC fact check?

The answer from three top economists: While the 220,000 figure over six years seems accurate, Clark appears to be taking credit for a recent uptick in employment that was mostly out of her control.

They use words such as “lucky,” “serendipitous” and “cyclical” to describe the reasons behind the job rise.

‘B.C. got lucky’ says economist

“What happened is, B.C. got lucky,” says Iglika Ivanova, senior economist with the Vancouver office of the Canadian Centre for Policy Alternatives.

“We’re seeing growth but it has little to do with provincial policy.”

Economist Iglika Ivanova of the Canadian Centre for Policy Alternatives said recent job growth in B.C. can’t attributed to Christy Clark’s Jobs Plan. (Don Marce/CBC)

Ivanova said the premier’s statement is “misleading.”

“I think it is more political spin than anything else,” said Ivanova, “because the job creation we have seen has very little to do with the B.C. Jobs plan and has a lot to do with the real estate market and the low Canadian dollar.”

‘It’s serendipitous’ says credit union economist

The chief economist with the B.C.-based Central 1 Credit Union, agrees, although his language is more muted.

“I would say the (increase in jobs) is mainly due to market forces,” said Helmut Pastrick.

Pastrick said B.C.’s job creation has led the country with 3.5 per cent growth in the first three months of this year, following similar strong results in 2016.

Helmut Pastrick, chief economist at Central 1 Credit Union, said the province has benefited from low interest rates and a 75 cent dollar, which have helped create ‘serendipitious’ jobs. (Don Marce/CBC )

But when asked how much of that could be due to a provincial job creation program, Pastrick replied, “Well I would think very little…It really has to do with, for the most part, forces that are beyond the government’s control.”

Pastrick identified the same economic drivers as Ivanova. 

“Certainly, B.C. has benefited from low (Canadian) currency that has declined from parity down to 75 cents US. We’ve (also) benefited from low interest rates,” said Pastrick.

“The confluence of those two favourable developments have certainly helped the B.C. economy and employment growth.

To that extent, it’s serendipitous.”  

Pastrick said most of the jobs that have been created are in the service industry;…

Read the full article from the Source…

Leave a Reply

Your email address will not be published. Required fields are marked *