Economy at Work

Inflation in Canada may be calming compared to the record highs in 2022 and 2023, but people are still struggling with the cost of living. While overall inflation increased by 2.1% on a year-over-year basis in September 2025, housing and grocery prices are rising at a significantly higher rate, the national averages being 4% for groceries and 4.8% for rent.

With every announcement from the new Liberal government, especially Budget 2025, it might be tempting to look back on the Justin Trudeau years with rose-coloured glasses. However, when we look at the progressive policies implemented by his government, it’s important that we remember that policy measures that advance workers’ rights or make society more equal don’t stem from government goodwill alone. Wins like anti-scab legislation, pharma and dental care are the results of hard-fought battles led by unions and their allies. As workers, we can never take for granted that governments will look out for our best interests.

On November 4, the new Liberal government tabled its first budget in the House of Commons. The nearly 500-page document lays out Mark Carney’s plan to supposedly “build Canada strong” in a time of profound political and economic transformation. Yet a closer look shows a short-sighted, inadequate and destructive plan that misses the mark in every area where it counts.

Ever since workers and their unions won legal recognition in Canada, governments have looked for ways to limit our right to strike. For decades, federal and provincial governments relied on back-to-work legislation to break strikes, but in recent months the federal government has embraced an even less democratic approach: Section 107 of the Canada Labour Code.

It has been over six months since Donald Trump imposed 25% tariffs on Canadian goods exported to the United States, except those covered by the Canada-US-Mexico Agreement on trade. The tariff war seems to be at the centre of attention for politicians and the media. Everyone is trying to figure out what this major story means for them, for the economy, and the future of Canada’s relationship with the United States.

Since the mid-1990s, policy at all levels of government across Canada has been shaped by the guiding principle of reducing government debt. This is why, especially around election time, you’ll often hear politicians talk about “balancing the budget” or “fiscal responsibility.”The 2025 federal election was no exception.

In January 2024, the federal government introduced a significant set of changes to the allocation and administration of international student visas and related immigration programs in Canada. These changes reduced the number of international students coming to Canada by about 40%, with large reductions to other temporary work visa streams as well, and were justified by claims that the reduction would ease pressures on housing, health care and other services.

If you’re struggling to keep up with the latest in US tariff announcements, you’re not alone! The Budget Lab at Yale University has put out a chart showing the dramatic shifts in US tariff policy since Donald Trump’s inauguration on January 20, 2025. They point out that these dramatic shifts have increased economic policy uncertainty for businesses operating in the United States.

A recent report by the Parkland Institute in Alberta shows that most for-profit surgical facilities have significantly higher costs for the same procedures as public hospitals, and these costs have been growing faster than the average rate of inflation.

Recent academic research by Canadian economists finds that higher levels of income inequality after 1996 have led to shorter life expectancies across Canadian provinces, with the effect being more pronounced for men. While this relationship has been established in the United States and other countries for many years, this is the first paper to find this effect in Canada.

Get the latest updates on economic growth, jobs, wages, inflation and interest rates, all in one place.

In the face of US President Donald Trump’s on-again, off-again tariff threats, Canadian premiers and federal politicians are calling for a reduction of internal trade barriers. Many claim Canada’s gross domestic product (GDP) could grow by hundreds of billions of dollars simply by removing regulatory barriers.

Recent progress made on tax fairness is at risk of being rolled back. During the leadership race, new Liberal Party leader Mark Carney announced he would not go ahead with changes to the capital gains tax announced in the 2024 federal budget. This decision will reduce government revenue at a critical time and make the tax system less fair for workers.

Get the latest updates on economic growth, jobs, wages, inflation and interest rates, all in one place. Economic growth Real gross domestic product (GDP)

When seasonal industries like tourism or fisheries form the economic backbone of a region, there often aren’t many jobs available for workers in the off

With the recent election of Donald Trump in the United States, we’re likely to hear a lot about one of his favourite economic policies — import tariffs. At the end of November, Trump announced that he planned to implement a 25% tariff on all imports from Canada, something that would significantly impact the Canadian economy.

Faced with ongoing employer pressure for concessions and two-tier contracts, CUPE’s National Executive Board is working to ensure our locals are equipped to stand firm and resist the rise of precarious employment, with an updated bargaining policy.

Strikes are a powerful tool that workers rely on to make their voices heard. This is especially true during tough economic times. When economic pressures like inflation push workers to their breaking point, labour action often follows. We saw this clearly in the 1970s, when rising inflation led to a spike in strikes and lockouts.

As expected, data shows that recent rate hikes have had a negative impact on Canada’s labour market.

Governments regularly borrow money to fund infrastructure and services. When these investments lead to economic growth, improve quality of life or prevent higher costs in the future, borrowing can make good fiscal sense.