Tristan Hoeppner, a 19-year-old heavy equipment operator, loads blast rock into a truck at Hidden Trails, a Homex development in Kamloops, B.C. on June 6.Marissa Tiel/The Globe and Mail
Getting caught up on a week that got away? Here’s your weekly digest of the Globe’s most essential business and investing stories, with insights and analysis from the pros, stock tips, portfolio strategies and more.
Canada has a goal to build millions of new homes – 3.9 million, to be exact – by 2031. There’s just a large problem with that mission, as Matt Lundy notes in his latest feature: “As Canada tries to double construction overnight, it raises a simple question that threatens to dash any hopes of an imminent fix: Who is going to build all these homes?” The construction industry is experiencing labour shortages. In fact, an estimated 134,000 construction workers are set to retire between now and 2033. Housing experts also say that the problem is an extension of the economy’s productivity woes – making many wonder if the federal government’s ambitious plan might be dead on arrival.
In other news, Canada’s banking industry is experiencing a series of changes this week. Royal Bank of Canada announced a major leadership shakeup as it integrates its takeover of HSBC Bank Canada, Stefanie Marotta reports. It is also splitting up its largest business unit, making the personal and commercial divisions as stand-alone teams. Toronto-Dominion Bank, on the other hand, has hired two former regulators for its anti-money-laundering team amid a lengthy probe by U.S. regulators and law enforcement agencies. TD has tapped a new hire from the Financial Transactions and Reports Analysis Centre of Canada and a hire who formerly worked for the U.S. Department of Homeland Security. The latest move comes a week after TD’s chief compliance officer left the bank.
Recent immigrants are feeling the burn of Canada’s weak job market. The unemployment rate for immigrants who became permanent residents within the last five years was 12.6 per cent in June, according to Statistics Canada. In contrast, the unemployment rate for people born in Canada was 5.5 per cent last month. The gap in jobless rates between these groups is the largest it’s been since August, 2014. “It’s become extremely tough for those looking for work,” economists at Desjardins Securities said in a recent research note. Matt Lundy takes a closer look at the figures in this week’s Decoder.
Toronto’s commercial real estate market is facing another blowback in the era of high interest rates and rising office vacancies. Two major Canadian pension funds and Brookfield Asset Management are trying to sell one of their downtown Toronto office buildings for a second time after failing to get the price they wanted in 2022, Rachelle Younglai and James Bradshaw report. The 20-storey property at 2 Queen St. E. is half-owned by Canada Pension Plan Investment Board (CPPIB), the country’s largest pension fund. Alberta Investment Management Corp. (AIMCo) owns 25 per cent and Brookfield Asset Management owns the rest. The property is fully leased and includes tenants such as CI Investments, Bank of Montreal and Bechtel Canada. Its sale is likely to be closely watched as it will test buyer appetite amid a multiyear downturn in the country’s commercial real estate sector.
The LCBO strike enters Day 10 following a week of barbs between union leaders and the Ontario government. Ontario Premier Ford said that he believes a deal can be reached between the Liquor Control Board of Ontario and striking workers, but he will not revisit his government’s plan to expand pre-mixed drinks into corner stores. Ontario Finance Minister Peter Bethlenfalvy called the decision “irreversible.” The union representing striking workers is demanding assurances from the provincial government that its plan won’t result in job losses for its members. Meanwhile, the strike is creating confusion in the supply chain – as import agents seek clarity on the state of shipments and restaurants and bars struggle to keep products in stock.
The saga with Canada Revenue Agency’s handling of bare trusts rules continues. The Office of the Taxpayers’ Ombudsperson has launched a formal investigation into the CRA’s conduct after the agency scrapped the controversial filing requirements just a few days before the April 2 cut-off date, Erica Alini reports. The last-minute change caused anger and frustration among scores of Canadians and tax advisers who had already spent considerable time and money to comply with the complex new rules. Findings from the investigation and recommendations will be published in a public report and presented to the Minister of National Revenue.
