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Canada’s Job Market Stumbles as February Brings Major Employment Losses

                                                       Workers operating machinery at a construction site in Edmonton.      Canada’s labour market took a sharp downturn in February, shedding 84,000 jobs and pushing the national unemployment rate up to 6.7%. The decline was far steeper than economists expected and marks one of the most significant monthly employment drops in recent years.  A Sudden and Significant Employment Decline Statistics Canada reported that the country lost 84,000 jobs in February , a surprising contraction that affected both goods‑producing and services‑producing industries. The unemployment rate rose to 6.7% , up 0.2 percentage points from January. Economists had anticipated modest job growth, making the downturn even more unexpected.  Who Was Hit the Hardest Youth aged...
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Canadian Manufacturers of COVID-19 Protective Equipment Sue Ottawa for $5 Billion in Damages

 

Canadian manufacturers who produce masks and other protective equipment to combat COVID-19 are pursuing legal action against the federal government, seeking more than $5 billion in damages. Their claim alleges that Ottawa misled them regarding the purchase and promotion of their products.

In a statement of claim filed in Federal Court, the companies and their industry association assert that the government made “negligent misrepresentations” that led them to invest in personal protective equipment innovations, manufacturing, and production. These misrepresentations spanned a three-year period starting in March 2020. The companies and the Canadian Association of PPE Manufacturers contend that the government provided misleading information about markets, direct assistance, flexible procurement, and long-term support.

The Canadian government had communicated through an initiative called Canada’s Plan to Mobilize Industry to fight COVID-19 that there would be new measures to directly support businesses in rapidly scaling up production or retooling their manufacturing lines. However, despite identifying masks and respirators as vital items for an airborne pandemic, the government did not contract with the Canadian companies, invoking a national security exception for procurement. Furthermore, in June 2021, the government allegedly promised a 10-year contract with the industry association and businesses to compensate for not purchasing protective equipment from domestic firms.

The companies claim that these misrepresentations resulted in approximately $88 million in investment losses and a further $5.4 billion in projected lost market opportunities over a ten-year period. They emphasize that this promise came from the highest levels of the Canadian government and was propagated across all relevant departments.

As the court case proceeds, the federal government will have an opportunity to respond to these unproven allegations. The manufacturers’ “special relationship” with the government, born out of a duty of care to small- and medium-sized businesses, underscores the significance of this legal battle.

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