WEBVTT 1 00:00:04.200 --> 00:00:19.559 Thank you for listening to Pictures Media Radio. Welcome to Policy and Rights, 2 00:00:21.160 --> 00:01:03.359 the show about the government, policy and human rights. All right, welcome 3 00:01:03.359 --> 00:01:06.319 back to Policy and Right here in Depictions Media Radio, I'm your host, 4 00:01:06.400 --> 00:01:11.599 Michael Cloggs. Let's start off in right here at home in British Columbia, 5 00:01:11.640 --> 00:01:18.799 increased family Benefit payments are arriving in bank accounts this summer and will help families 6 00:01:19.280 --> 00:01:27.680 with rising expenses due to inflation. With global inflation and high interest rates driving 7 00:01:27.920 --> 00:01:34.040 up dealing costs, we know families are being hit hard right now. The 8 00:01:34.079 --> 00:01:44.599 premiere David Eve, we're increasing support to low and middle income families British Columbia 9 00:01:45.040 --> 00:01:53.359 throughout an expanded BC Family Benefit. Getting a little extra money to families for 10 00:01:53.519 --> 00:02:00.079 the basics is one of the ways we are helping people who are feeling the 11 00:02:00.200 --> 00:02:08.039 squeeze right now. The benefit is expected to actually help about thirty sorry three 12 00:02:08.159 --> 00:02:20.159 hundred and forty thousand families and which is about sixty six thousand more than last 13 00:02:20.240 --> 00:02:24.960 year. Will receive the benefit through monthly deposits in their bank accounts or mail 14 00:02:25.120 --> 00:02:32.879 checks starting in mid July. The twenty five percent increase through the bonus means 15 00:02:34.400 --> 00:02:39.159 families of four could potentially receive as much as three thousand, five hundred and 16 00:02:39.159 --> 00:02:46.479 sixty three dollars annually, while a single parent with one child could receive as 17 00:02:46.560 --> 00:02:53.759 much as two thousand, six hundred eighty eight dollars. So oh, let's 18 00:02:53.879 --> 00:03:02.240 move forward. A BBC update on a government that launched an attack in the 19 00:03:02.319 --> 00:03:12.800 Russian Republic It Attacks on the police and churches and the synagogue in the Russian 20 00:03:12.840 --> 00:03:22.120 Republic of Dakistan have left nineteen police officers and several civilians dead. A social 21 00:03:22.280 --> 00:03:35.400 media footage captured a government firing on the street, while and while a clip 22 00:03:35.439 --> 00:03:44.479 from Durban, home to a ancient Jewish community, showed buildings on fire. 23 00:03:45.039 --> 00:03:57.240 Sunday. The attacks coincided with the Orthodox festival of pentecost A long a long 24 00:03:57.280 --> 00:04:04.000 serving priest is said to be among the dead. The police detained the head 25 00:04:04.680 --> 00:04:15.919 of one district near Malakala following the reports that his two Jewish sons were among 26 00:04:15.960 --> 00:04:27.040 the attackers, and said six gunmen had been killed. Dagistan, one of 27 00:04:27.079 --> 00:04:36.439 the Russians porce provinces, is predominantly Muslim and has in the past been the 28 00:04:36.480 --> 00:04:46.120 scene of Islamic attacks. The Krimlin has dismissed the possibility of the other wave 29 00:04:46.360 --> 00:04:59.040 of violence, and Dagastan head Sergei Malalov implied Ukraine had been involved in the 30 00:04:59.120 --> 00:05:08.000 attack. So moving forward, we're gonna hear from the United Nations and we're 31 00:05:08.040 --> 00:05:15.560 also gonna hear from the the leadership of NATO as he gives a speech from 32 00:05:16.519 --> 00:05:26.959 from Canada about security in Canada. The Secretary General is going to give it 33 00:05:26.959 --> 00:05:34.920 has given a press conference on cybersecurity and the importance of ensuring that the message 34 00:05:34.959 --> 00:05:42.639 is delivered via social media and on the Internet are accurate and truthful. That 35 00:05:43.199 --> 00:05:54.519 misinformation h is harmful to to not only those who are listening to the information, 36 00:05:55.160 --> 00:06:00.079 but to those who may be distant from the information because it has such 37 00:06:00.199 --> 00:06:14.519 effects on the messages they are delivered. And when we hear from NATO, 38 00:06:14.639 --> 00:06:20.920 there are courts going to be commending the efforts of what the Canada has been 39 00:06:20.959 --> 00:06:28.160 doing in Ukraine in training troops so that they can defend their country. So 40 00:06:28.360 --> 00:06:34.839 once we push forward and we're going to hear from the United Nations, Good 41 00:06:34.839 --> 00:06:42.399 afternoon, distinguished members of the media. The spread of a truth and lies 42 00:06:42.439 --> 00:06:50.920 online is causing grave harm to our world. Misinformation these information and aid speech 43 00:06:51.800 --> 00:07:00.160 are fueling prejudice and violence, exacerbating divisions and conflicts them and I minorities, 44 00:07:00.959 --> 00:07:08.720 and compromising the integrity of elections. Today, I'm pleased to present a starting 45 00:07:08.800 --> 00:07:16.560 point for solutions the United Nations Global Principles for Information Integrity. These five principles 46 00:07:17.319 --> 00:07:26.759 Social trust and resilience, independent, free and plooralistic media, elsy incentives, 47 00:07:27.399 --> 00:07:34.120 transparency and research, and public empowerment are based on an overriding vision of a 48 00:07:34.160 --> 00:07:41.959 more humane information system. They call for an information environment that champions human rights 49 00:07:41.959 --> 00:07:46.800 and the sustainable future, and they provide a solid foundation for sustainable, inclusive 50 00:07:46.839 --> 00:07:55.439 development, climate action, democracy and peace. So the members of the media, 51 00:07:56.160 --> 00:08:00.639 threats to information integrity are not new, but they are probably inferating and 52 00:08:00.800 --> 00:08:09.279 expanding with n precedented speed on digital platforms and supercharge by AI technologies. Science, 53 00:08:09.639 --> 00:08:13.720 facts, human rights, public health, climate action are under attack, 54 00:08:16.000 --> 00:08:22.120 and when information integrity is targeted, so is democracy, which depends on a 55 00:08:22.199 --> 00:08:30.279 shared fact based perception of reality. False narratives, distortions and lies breed cynicism, 56 00:08:30.519 --> 00:08:37.559 disbelief and disengagement. They undermines social coision, putting the sustainable development goals 57 00:08:37.639 --> 00:08:46.120 further out of reach or pack algorithms push people into information bubbles and reinforce prejudices, 58 00:08:46.159 --> 00:08:54.240 including racism, misorgery, and discrimination of all kinds. Women, refugees, 59 00:08:54.399 --> 00:09:00.759 vigrants, and minorities are common targets. Activists, advocates, researchers, 60 00:09:00.799 --> 00:09:07.159 scientists, and leaders are arrassed and humiliated, and the damage goes far beyond 61 00:09:07.200 --> 00:09:11.000 the digital realm, affecting billions of people who are not connected to the Internet. 62 00:09:13.200 --> 00:09:18.759 Lives are at stake when lives are spread about vaccines and other medical issues. 63 00:09:18.840 --> 00:09:24.639 The United nations own operations and missions are compromised as our staff deal with 64 00:09:24.679 --> 00:09:33.159 the tsunami, falsehoods and absurd conspiracy theories so distinguish members of the media and 65 00:09:33.240 --> 00:09:39.120 their friends. The United Nation's Global Principles for Information Integrity are the results of 66 00:09:39.200 --> 00:09:46.399 broad consultations with member states, with use leaders, academia, civil society, 67 00:09:46.919 --> 00:09:54.720 the private sector, including tech companies and the media. Those consultations showed that 68 00:09:54.879 --> 00:10:00.639 much of the world shares our deep concern and is searching for solutions, and 69 00:10:00.679 --> 00:10:05.639 the Global Principles lay out a clear plan forward, firmly rooted in human rights, 70 00:10:05.279 --> 00:10:11.600 including the rights to freedom of expression and opinion, and I urge governments, 71 00:10:11.799 --> 00:10:16.559 the tech sector and other stakeholders to listen to your people and your customers 72 00:10:16.600 --> 00:10:24.840 and to respond. Some stakeholders carry out carry an outsized responsibility, and for 73 00:10:24.919 --> 00:10:30.320 them, I have a clear message with demand action. First to the big 74 00:10:30.360 --> 00:10:37.559 tech companies, take responsibility. Acknowledge the damage your products are inflicting on people 75 00:10:37.600 --> 00:10:41.759 and communities, and you have the power to mitigate harm to people and societies 76 00:10:41.960 --> 00:10:46.879 around the world. You have the power to change business models that profit from 77 00:10:46.960 --> 00:10:56.440 these information and hate. Second to advertisers and the PR industry, stop monetizing 78 00:10:56.639 --> 00:11:01.679 harmful content, strengths and information in tegrity, protect your brand, boost your 79 00:11:01.720 --> 00:11:09.320 bottom line. The climate crisis is a cause of particular concern. Coordinated these 80 00:11:09.360 --> 00:11:16.279 information campaigns are seeking to undermine climate action. Creatives, don't use your talents 81 00:11:16.320 --> 00:11:22.879 to greenwash pur agencies, look for clients. Warn't misleading people and destroying our 82 00:11:22.919 --> 00:11:30.960 planets sert. My message to mendy outlets is raise and reinforce editorial standards. 83 00:11:31.879 --> 00:11:37.840 Do your part to safeguard our future by providing quality journalism based on facts and 84 00:11:37.000 --> 00:11:43.399 reality. Find advertisers are part of the solution, not the problem. And 85 00:11:43.440 --> 00:11:48.399 finally, I say to governments, commit to creating and maintaining a free, 86 00:11:48.559 --> 00:11:54.679 viable, independent, and plural medial landscape. Guarantee strong protections for journalists. 87 00:11:56.559 --> 00:12:03.039 Ensure regulations old human rights, and refrain from drastic measures, including blanket internet 88 00:12:03.240 --> 00:12:09.919 shutdowns. Respect the right to freedom of opinion and expression and need Let me 89 00:12:11.360 --> 00:12:16.720 be very clear, everyone should be able to express themselves freely without fear of 90 00:12:16.759 --> 00:12:24.080 attack. Everyone should be able to access a range of views and information sources. 91 00:12:24.000 --> 00:12:28.279 No one should be at the mercy of an algorithm they don't control, 92 00:12:28.000 --> 00:12:33.879 which was not designed to safeguard their interests, and which tracks their behavior to 93 00:12:33.919 --> 00:12:39.399 collect personal data and keep them hooped. So the members of the media, 94 00:12:39.840 --> 00:12:45.480 these principles aim to empower people to demand their rights. They support parents anxious 95 00:12:45.480 --> 00:12:50.559 for their children, young people whose future relies on information, integrity, civil 96 00:12:50.600 --> 00:12:58.000 society, and academia. We are pushing for change and public interest media striving 97 00:12:58.039 --> 00:13:03.879 to convey, reliable and create information. Un here's your calls for guidance and 98 00:13:03.960 --> 00:13:09.679 support. So don't lose heart, raise your voices, demand accountability, demand 99 00:13:09.759 --> 00:13:16.039 choice, demand control. You are the majority and this is a fight we 100 00:13:16.120 --> 00:13:20.559 can win together. Same. Thank you very much for Okay, So we 101 00:13:20.639 --> 00:13:28.200 heard from the Secretary General on cybersecurity and securing that messages are helpful to the 102 00:13:28.279 --> 00:13:41.039 people overall. We heard the Secretary General mentioned about bottom lines and simply broadcasting 103 00:13:41.120 --> 00:13:46.000 just to increase your bottom line. I want to want to make a comment 104 00:13:46.000 --> 00:13:54.039 about that and that we the public need to ensure that there is more information 105 00:13:54.159 --> 00:14:03.240 being sent out by sources that are independent of corporations, that we hear from, 106 00:14:03.240 --> 00:14:09.559 more independent media outlets and those who are not taking money from the big 107 00:14:09.600 --> 00:14:18.159 corporations like the Sun Oil's, the pfighters that are out there that they are 108 00:14:18.759 --> 00:14:26.120 broadcasting information because they want people to know and not just trying to sell more 109 00:14:26.240 --> 00:14:33.919 product. So let's move ahead to the next segment. This question to Valeria 110 00:14:35.000 --> 00:14:41.759 Rebecca. Thank you, Secretary General alm bealso of the United Nations Correspondent Association 111 00:14:41.960 --> 00:14:48.000 for this press conference. Valeria Rebecca from Anson News Buyers. So my question 112 00:14:48.159 --> 00:14:56.320 is how do you think you will get countries on board and those principle being 113 00:14:56.360 --> 00:15:05.799 implemented and looking specifically toward zones. I'll offer you to see an implementation of 114 00:15:05.039 --> 00:15:11.600 these principles not only to ensure safety for the press, but also for the 115 00:15:11.639 --> 00:15:16.720 public to have access to reliable and timely information and if I may on Lebanona, 116 00:15:18.639 --> 00:15:24.240 is there any developments, any good developments, And in terms of did 117 00:15:24.279 --> 00:15:28.000 you have contacts with the parties in trying to de escalate the situation? Thank 118 00:15:28.039 --> 00:15:35.120 you so much answering the second, since my stakeout on Friday, nothing relevant 119 00:15:35.159 --> 00:15:46.720 has happened that I no. Now we have a clear message to governments, 120 00:15:46.720 --> 00:15:56.679 and that message is based fundamentally on the respect of human rights. And obviously 121 00:15:56.759 --> 00:16:03.679 governments have the capacity to regulate, and those regulations must be organized in a 122 00:16:03.799 --> 00:16:11.519 way that human rights are respected, that freedom of expression is respected, that 123 00:16:11.639 --> 00:16:15.919 freedom of media is respected, that journalists are protected, and at the same 124 00:16:17.000 --> 00:16:30.519 time that those platforms that have the capacity to spread information put the integrity of 125 00:16:30.600 --> 00:16:41.320 information first and not a business model that makes more money when hate speech or 126 00:16:41.360 --> 00:16:47.320 misinformation is spread. All the research that was done proves that with most of 127 00:16:47.360 --> 00:16:55.519 the present business models, false things, especially if they are scandalous, appeals 128 00:16:55.600 --> 00:17:02.240 to intolerance and to hate speech tend to have a much stronger engagement, and 129 00:17:02.279 --> 00:17:07.039 that algorithms are based on that. So what we ask is the platforms to 130 00:17:07.079 --> 00:17:14.839 assume responsibilities in this regards and we ask governments to be attentive to these and 131 00:17:14.920 --> 00:17:21.200 to have the regulations that respect the principles that I mentioned, but at the 132 00:17:21.240 --> 00:17:26.880 same time that create the conditions for the business models to be based on a 133 00:17:26.960 --> 00:17:34.400 do no harm perspective. Edie, you I much miss the Secretary General. 134 00:17:36.680 --> 00:17:45.279 First of follow up on the principles, you said that big tech companies and 135 00:17:45.480 --> 00:17:56.079 especially advertising and PR people really have control over this in a major way. 136 00:17:57.039 --> 00:18:04.759 What is the U and going to do to try and ensure that big tech 137 00:18:06.119 --> 00:18:15.240 and advertising and PR companies actually take these principles to heart and do what you 138 00:18:15.559 --> 00:18:23.039 said, which is to stop disinformation, hate speech, etc. And secondly, 139 00:18:23.480 --> 00:18:34.319 on Gaza there's been an escalation of fighting. And also what is your 140 00:18:34.440 --> 00:18:47.160 reaction to Israeli Prime Ministered Benjamin Natanyahu's statement this morning that Israel will not agree 141 00:18:47.480 --> 00:18:57.759 to any deal that calls for a permanency's fire. Thank you, first of 142 00:18:57.759 --> 00:19:04.880 all, in addition to the first question, all those companies have people working 143 00:19:04.920 --> 00:19:12.279 there, their parents, their citizens. They are interested in do no harm, 144 00:19:12.400 --> 00:19:18.160 and this appeal we have seen in many areas all the stuff of companies 145 00:19:18.400 --> 00:19:22.960 has been a very important factor in making sure that companies do the right thing. 146 00:19:23.200 --> 00:19:26.279 On the other hand, whenever our objective is to mobilize public opinion, 147 00:19:27.079 --> 00:19:32.400 for public opinion to put pressure, put pressure on companies and put pressure on 148 00:19:32.440 --> 00:19:37.920 governments in this regard. But I have to say that the problem is that 149 00:19:37.039 --> 00:19:45.880 those companies even lose control with the present systems in place, because when you 150 00:19:45.960 --> 00:19:52.720 have an algorithm, the algorithm works automatically and you don't even control what the 151 00:19:52.759 --> 00:19:59.680 algorithm will produce. So people need to be much more rigorous in the algorithms 152 00:19:59.720 --> 00:20:04.559 that developed, and most of the advertising companies, I must say, I 153 00:20:04.720 --> 00:20:12.279 doubt that they have control of their own products in many of the social media 154 00:20:12.319 --> 00:20:18.920 platforms. So I think it's in the interests of the advertising industry to know 155 00:20:18.119 --> 00:20:26.359 exactly how their products are being used, how do they appear, how is 156 00:20:26.440 --> 00:20:33.319 that selected within the way algorithms work and within the way the tech companies work. 157 00:20:33.480 --> 00:20:41.279 So in my opinion, it's fundamental to mobilize everybody, including those that 158 00:20:41.480 --> 00:20:48.640 operate in these industries, to accept the principle of do no harm and to 159 00:20:48.720 --> 00:20:53.240 adapt their business models to the right thing to do. The second question, 160 00:20:53.359 --> 00:21:00.839 Our position has been the same since the beginning. We strongly advocate for an 161 00:21:00.880 --> 00:21:07.400 immediate humanitarian CEA is fire and for any immediate release and then conditional release of 162 00:21:07.480 --> 00:21:11.240 all hostages as the basis to create the conditions for one day, the two 163 00:21:11.279 --> 00:21:18.880 say solution to be possible. Thank you that that means that it's a different 164 00:21:18.920 --> 00:21:26.160 position than the one that you have expressed sexual general strauduct with Chines and your 165 00:21:26.160 --> 00:21:30.400 television. I promise you. I only have one question. It's about information 166 00:21:30.440 --> 00:21:34.240 integrity. Let me give you an example. If I search Athrise, if 167 00:21:34.279 --> 00:21:41.920 I search on Google now, if I search on Google now, the second 168 00:21:41.480 --> 00:21:48.960 the second result is a sponsored advertisement called on war neutuality compromised. So in 169 00:21:49.000 --> 00:21:56.319 this information integrity, how can you ensure that governments they don't they don't because 170 00:21:56.319 --> 00:22:02.119 of maybe their national interests to push for misinformation or disinformation. Do you have 171 00:22:02.200 --> 00:22:08.400 confidence that member states would do that? I think that member states have a 172 00:22:08.519 --> 00:22:19.119 vested interests in not promoting misinformation because sooner or later the truth is discovered. 173 00:22:19.799 --> 00:22:26.680 I'll give you one example of misinformation about myself. I've heard the same source 174 00:22:27.160 --> 00:22:33.200 many times saying that I never attacked AMAS, that I never condemned AMAS, 175 00:22:33.319 --> 00:22:37.519 that I am a supporter of AMAS. I asked for a statistic to be 176 00:22:37.640 --> 00:22:45.240 made by our colleagues. I have condemned AMAS one under than two times fifty 177 00:22:45.279 --> 00:22:52.720 one of them informal speeches, the others in different social platforms. So I 178 00:22:52.759 --> 00:23:03.039 mean the truth in the end always wins. Team and Joe Abderrami Siam from 179 00:23:03.039 --> 00:23:08.640 the Arabic daily Al kotzel Rabi, Mister Secretary General, the Palestinian people are 180 00:23:08.680 --> 00:23:14.720 being obliterated. The killing machine did not stop. For the last nine months, 181 00:23:15.160 --> 00:23:19.799 over one hundred thirty thousand Palaestinian either killed maimed, and there's over twenty 182 00:23:19.799 --> 00:23:33.000 thousand Palestinian children had been became orphans. Israel is defying every international agency for 183 00:23:33.240 --> 00:23:40.839 Security Council resolution, two General Assembly Resolutions i CEJ three times, the Provisional 184 00:23:41.000 --> 00:23:45.599 majority. Where take you please? A question? What else can the international 185 00:23:45.559 --> 00:23:52.960 community do to protect the Palestinian Would they just keep watching while thousands and thousand 186 00:23:52.039 --> 00:24:00.119 Polsine being killed both in Gaza and the West Bank. Thank you well. 187 00:24:00.160 --> 00:24:07.440 First of all, the international community must put all pressure in order for international 188 00:24:07.519 --> 00:24:14.240 law to be respected, for international Meditaian law to be respected. The number 189 00:24:14.240 --> 00:24:19.599 of Palacinian killed in Gaza is unprecedented in any conflict that I have witnessed since 190 00:24:19.640 --> 00:24:25.240 I am Secretary General, which means that the protection of civilians has not been 191 00:24:26.400 --> 00:24:30.720 a key instrument in the conduction of this operations. And on the other hand, 192 00:24:32.440 --> 00:24:37.440 I mean international law applies, and there are courts that deal with international 193 00:24:37.559 --> 00:24:44.920 law, and the decisions of those courts must be respected in all circumstances. 194 00:24:45.359 --> 00:24:48.240 Joe and I will need to let the ESCHI goo Joseph Klein, Canada, 195 00:24:48.279 --> 00:24:55.599 Free Press. I want to return to your topic today and the global principles 196 00:24:55.799 --> 00:25:02.720 for information integrity. You've talked often and CLU today about the danger of misinformation 197 00:25:03.359 --> 00:25:10.359 and hate speech on social media and appropriately so, but I would like specifically 198 00:25:10.920 --> 00:25:18.200 to know how you would apply your message to the tech industry and advertisers to 199 00:25:18.079 --> 00:25:25.599 the growing concern that teenagers and children on social media are being sexually solicited, 200 00:25:26.480 --> 00:25:34.599 harassed, bullied, body shamed and addicted. That's something that hasn't received as 201 00:25:34.680 --> 00:25:40.920 much attention as far as I can tell in your remarks, but I'm sure 202 00:25:41.000 --> 00:25:42.960 you are very concerned about it, So could you comment on Thank you. 203 00:25:45.079 --> 00:25:48.960 We mentioned it in my remarks and it is central in the document that we 204 00:25:48.960 --> 00:25:56.319 have published. Indeed, the question of children is probably the most worrying question 205 00:25:56.640 --> 00:26:00.319 for me in relation to what we are witnessing in using information and this information 206 00:26:00.680 --> 00:26:11.759 and in addiction, because one of the problems is addiction to some series of 207 00:26:11.799 --> 00:26:18.359 activities related to social media, to platforms, and to other aspects. I 208 00:26:18.720 --> 00:26:29.079 strongly encourage, strongly encourage the companies involved to adopt very rigorous mechanisms based on 209 00:26:29.119 --> 00:26:33.279 the do No Arm principle in relation to children, and I strongly encourage governments 210 00:26:33.599 --> 00:26:38.119 to be particularly effective in regulation in this regard. Thank you. We have 211 00:26:38.160 --> 00:26:41.920 to let the Secretary General go, but Milissa will state answer. Thanks. 212 00:26:41.960 --> 00:26:49.000 We're going to hear from Jen Strathenberg as he gives a speech in Ottawa. 213 00:26:49.559 --> 00:27:04.799 He is speaking to the NATO Association of Canada after accepting the Lewis Saint Laurent 214 00:27:06.000 --> 00:27:15.759 Award for outstanding service and peace insecurity. And let's hear what his remarks are 215 00:27:15.160 --> 00:27:22.680 to Canada as we in Canada are actually struggling to keep up with the NATO 216 00:27:22.799 --> 00:27:30.640 standards, and how he made a promise to ensure that Canada will continue to 217 00:27:30.680 --> 00:27:36.720 be a strong member of NATO. Good afternoon, it's great to see you 218 00:27:36.759 --> 00:27:40.480 all, and David, thank you so much for your kind words, your 219 00:27:40.559 --> 00:27:47.240 public service in politics as a minister's minister, has really made a difference, 220 00:27:47.359 --> 00:27:49.559 not only for Canal but also for NATO. So it's great to see you 221 00:27:49.599 --> 00:27:56.079 and I'm great to meet all of you many times. Also to the NATO 222 00:27:56.119 --> 00:28:00.880 Association of Canada and the Canadian and NATO Parlimento Association for inviting me to be 223 00:28:02.000 --> 00:28:06.480 here today. It is good to be back in Canada. I feel at 224 00:28:06.480 --> 00:28:11.319 home in this country. And last time I was here, I went to 225 00:28:11.400 --> 00:28:18.720 Cambridge Bay with Prime Minister to door and the Defense and the Foreign Minister and 226 00:28:19.079 --> 00:28:27.680 we visited neural that this early warning radar and it was actually extremely useful for 227 00:28:27.720 --> 00:28:33.839 me to see this myself and also extremely interesting. And I'm great to be 228 00:28:34.039 --> 00:28:41.160 in the High North of Canada. The vs today may be a bit less, 229 00:28:41.400 --> 00:28:45.920 as I say, exciting in a way that it's not a high North, 230 00:28:47.359 --> 00:28:52.880 but at least the climate is actually much and it was a very different 231 00:28:52.880 --> 00:28:56.960 actually in a way that it's extremely warm hair now that was not the case 232 00:28:56.000 --> 00:29:00.559 opened the High North. But anyway, thank you so much. It's great 233 00:29:00.599 --> 00:29:07.920 to see you all, and I appreciate this opportunity to say some few words. 234 00:29:07.960 --> 00:29:14.839 But let me start by express my gratitude and to tell you that it 235 00:29:14.960 --> 00:29:21.920 is really a great honor to receive the Louis Sanlauran Award, named after prime 236 00:29:21.920 --> 00:29:30.160 minister who oversaw Canada joining NATO back in nineteen forty nine. And Santura was 237 00:29:30.240 --> 00:29:37.640 one of the earliest proponents of NATO as a transatlantic alliance. He understood that 238 00:29:37.720 --> 00:29:44.799 the only way to stand up to aggression was for free nations to stand together. 239 00:29:45.680 --> 00:29:51.240 He was right then and he is right now. For today, we 240 00:29:51.440 --> 00:29:59.599 face the most challenging, complex and dangerous security environment for generations. In three 241 00:29:59.640 --> 00:30:04.880 weeks, leaders the NATO Hudson State of Heads of State and Government will meet 242 00:30:06.119 --> 00:30:11.920 in Washington for the NATO Summit. There we will celebrate the seventy fifth anniversary 243 00:30:11.039 --> 00:30:18.640 of our alliance. But this summit will not only be about celebrations, but 244 00:30:18.759 --> 00:30:25.240 it will also be an opportunity to make important precisions for the future. There 245 00:30:25.240 --> 00:30:30.680 are three main issues on our agenda. First, the terrans and the fence. 246 00:30:32.640 --> 00:30:37.839 We live in a more dangerous world with a greater global competition, a 247 00:30:37.880 --> 00:30:42.960 new war in the Middle East and a full fledged war in Europe. Canada 248 00:30:44.039 --> 00:30:48.119 contributes to NATO's the terrans and events in many different ways. We are very 249 00:30:48.200 --> 00:30:55.039 grateful for those contributions. Not least on Europe's east and flank, where Canadian 250 00:30:55.079 --> 00:31:00.279 troops lead NATO's National Battle Group in Latvia. And I have had the privilege 251 00:31:00.319 --> 00:31:07.039 of meeting the Canadian soldiers in Latvia several times, and every time I met 252 00:31:07.039 --> 00:31:11.160 them, I've been impressed by the commitment, by the skill, by the 253 00:31:11.279 --> 00:31:18.240 professionalism, and I would like to express my gratitude to them, but also 254 00:31:18.279 --> 00:31:26.880 to Canada for everything you do to strengthen NATO's military persons on our eastern flank 255 00:31:27.000 --> 00:31:32.279 and pay tribute to all those who serve and have served in that bat group. 256 00:31:33.440 --> 00:31:42.279 In twenty fourteen, Russia illegally annexed the Crimea and at that time all 257 00:31:42.400 --> 00:31:51.359 NATO allies at the NATO Submitting Wales in the United Kingdom decided that we should 258 00:31:51.359 --> 00:31:56.559 spend two percent of GDP on defense. At that time, only three allies 259 00:31:56.680 --> 00:32:05.680 out of all NATO members met the guideline met the target of spending two percent 260 00:32:05.720 --> 00:32:09.599 of GDP on defence. That was the United States, The Kingdom and Greece. 261 00:32:12.480 --> 00:32:16.440 This year, in twenty twenty four, twenty three allies will spend at 262 00:32:16.519 --> 00:32:23.880 least two percent of GDP on defence. Canada is also increasing its defence spending 263 00:32:24.359 --> 00:32:34.200 and will add billions over the coming years, including by purchasing high end new 264 00:32:34.319 --> 00:32:40.880 capabilities, modernizing neurald and by investing in fifth generation F thirty five aircraft. 265 00:32:42.400 --> 00:32:47.039 This is important for our collective security. This will have to further strengthen NATE 266 00:32:47.119 --> 00:32:52.880 to us a defensive military alliance. At the same time, I continue to 267 00:32:52.920 --> 00:32:59.440 expect that all allies should meet the guideline of spending two percent. I know 268 00:32:59.559 --> 00:33:07.279 that the is not always easy because I've been a politician, parliamentarium and a 269 00:33:07.279 --> 00:33:13.319 Prime minister for many years, and I know that it's always easier to spend 270 00:33:13.319 --> 00:33:19.839 money on health, education, infrastructure and many other important tasks than to invest 271 00:33:19.920 --> 00:33:24.200 more in defense. And that's also the reason why when the Cold War ended, 272 00:33:25.480 --> 00:33:34.160 European allies Canada reduced the fence spending because tensions went down. But when 273 00:33:34.200 --> 00:33:38.240 we reduce the fence spending when tensions are going down, we have also to 274 00:33:38.319 --> 00:33:45.079 be must also be able to increase spending investments and security when tensions are increasing 275 00:33:45.240 --> 00:33:50.319 and are high as they are today. So therefore the reality is that now 276 00:33:50.359 --> 00:33:57.400 we need to prioritize defence investments in our security because we need that to respond 277 00:33:57.400 --> 00:34:05.079 to more dangerous and challenging environment. And as I said, the reality is 278 00:34:05.119 --> 00:34:08.960 that that's what NATO allies are doing. Twenty three allies on two percent or 279 00:34:09.000 --> 00:34:15.039 more, and more and more allies are approaching two percent out of those who 280 00:34:15.079 --> 00:34:22.840 are not yet at that target. The second topic for the summit, and 281 00:34:22.880 --> 00:34:28.760 the most urgent one, will be Ukraine. Since Russia's full scale invasion, 282 00:34:29.320 --> 00:34:36.360 NATO allies have provided unpresented levels of support to Ukraine. Again, Canada is 283 00:34:36.400 --> 00:34:42.920 really among those allies who are provided significant and substantial support to Ukraine, and 284 00:34:42.960 --> 00:34:46.760 not only since the full scale invasion in twenty twenty two. But I was 285 00:34:46.840 --> 00:34:52.760 in Ukraine back in twenty fifteen, and I remember I visited a training site 286 00:34:53.199 --> 00:35:01.199 in the western part of Ukraine where actually Canadian soldiers officers inning the Ukrainians already 287 00:35:01.280 --> 00:35:07.800 back then. So not only have Canada provided es central support after the full 288 00:35:07.840 --> 00:35:12.760 scale invasion in February twenty two, but you are among those allies who have 289 00:35:12.800 --> 00:35:16.400 been there for the longest time and helped them also prior to the full scale 290 00:35:16.400 --> 00:35:23.000 invasion, and the support the training you provided before the invasion proved extremely important 291 00:35:23.039 --> 00:35:30.199 when Russia launched a full scale invasion A couple of years ago. Since the 292 00:35:30.239 --> 00:35:36.360 invasion, Canada has provided billions of dollars in a to Ukraine, including air 293 00:35:36.480 --> 00:35:43.280 defense systems, battle tanks, and F sixteen pilot training, on top of 294 00:35:43.719 --> 00:35:50.800 a lot of ammunition, another military equipment and support which has made a difference 295 00:35:50.920 --> 00:35:57.880 on the battlefield for Ukraine. This has been indispensable for Ukrainians to fight back 296 00:35:58.039 --> 00:36:02.639 and to survive as a sovereign nation. But this winter and spring we saw 297 00:36:02.760 --> 00:36:09.679 serious lays and gaps in delivering support, with consequences on the front line. 298 00:36:10.519 --> 00:36:15.920 We cannot let this happen again, and that is why I expect ally leaders 299 00:36:16.239 --> 00:36:22.400 to agree for NATO to lead the coordination and provision of security systems and training 300 00:36:22.639 --> 00:36:30.480 for Ukraine. I also I also have proposed a long term financial pledge with 301 00:36:30.639 --> 00:36:37.079 fresh funding every year for Ukraine. The more credible our long term support, 302 00:36:37.559 --> 00:36:43.199 the quick in Moscow will realize it cannot wait us out, the sooner this 303 00:36:43.360 --> 00:36:49.119 war will end. It may seem like a paradox, but the path to 304 00:36:49.280 --> 00:36:54.199 peace is more weapons to Ukraine to convince person and Putin that he cannot win 305 00:36:54.320 --> 00:37:12.199 on the battlefield. We must ensure that putins aggression doesn't pay off today or 306 00:37:12.239 --> 00:37:15.199 in the future. That is why we at the NATO summit in Washington next 307 00:37:15.199 --> 00:37:22.320 month, will continue to bring Ukraine ever closer to NATO membership so that when 308 00:37:22.360 --> 00:37:35.039 the time is right, Ukraine can join without any delay. The third major 309 00:37:35.119 --> 00:37:42.760 topic at the NATO summit is our global partnerships, especially in the Indo Pacific, 310 00:37:43.400 --> 00:37:45.880 and of course Canada, being both an Atlantic and a Pacific nation, 311 00:37:46.159 --> 00:37:52.639 you are aware of both the challenges in Europe but also the Indo Pacific. 312 00:37:54.519 --> 00:38:00.679 The war in Ukraine demonstrates that our security is not regional. Our security is 313 00:38:00.760 --> 00:38:06.199 global, not least because of the support we know Russia is getting from China 314 00:38:06.280 --> 00:38:13.719 and others. Beijing is sharing high end technologies like semiconductors and other dually use 315 00:38:13.800 --> 00:38:22.440 items. Last year, Russia imported ninety percent of its microelectronics from China used 316 00:38:22.599 --> 00:38:29.119 to produce missiles, tanks, and aircraft. China is also working to provide 317 00:38:29.199 --> 00:38:36.960 Russia with improved satellite capability and imagery. All of this enables Moscow to inflict 318 00:38:37.119 --> 00:38:44.599 more death and destruction on Ukraine, bolster Russia's defense industrial base, and evade 319 00:38:44.719 --> 00:38:50.679 the impact of sanctions and exports controls. Publicly, President she has tried to 320 00:38:50.719 --> 00:38:55.480 create the impression that he is taking a back seat in the conflict in Ukraine 321 00:38:57.199 --> 00:39:01.559 toward sanctions and to keep trade flowing. But the reality is that China is 322 00:39:01.639 --> 00:39:07.440 fueling the largest armed conflict in Europe since World War Two, and at the 323 00:39:07.480 --> 00:39:14.599 same time it wants to maintain good relations with the West. Well, Beijing 324 00:39:15.199 --> 00:39:20.960 cannot have it both ways at some point, and unless China changes course, 325 00:39:21.599 --> 00:39:29.360 allies need to impose a cost. Russia is receiving support from others. Two 326 00:39:30.199 --> 00:39:36.880 North Korea has delivered over one million rounds of artillery shells, and Iran has 327 00:39:36.880 --> 00:39:43.320 delivered thousands of deadly Shahaed drones. We are deeply concerned that in exchange, 328 00:39:43.440 --> 00:39:50.119 Pungyang and Tehran could receive Russian technology and supplies to help them advance their missile 329 00:39:50.159 --> 00:39:57.480 and nuclear programs. The growing alignment between Russia and its authoritarian friends in Asia 330 00:39:58.079 --> 00:40:01.960 makes it even more important that we work closely with our friends in the Indo 331 00:40:02.039 --> 00:40:07.119 Pacific. I have therefore invited the leaders, the heads of state and government 332 00:40:07.880 --> 00:40:15.360 of Australia, Japan, New Zealand and the Republic of Korea to the summit 333 00:40:15.480 --> 00:40:21.039 in Washington next month. Together, we can uphold the international rules based order 334 00:40:21.480 --> 00:40:28.679 and protect our shared values. So, ladies and gentlemen, for seventy five 335 00:40:28.760 --> 00:40:35.920 years, NATO Allies has kept us safe, just as Prime Minister Stora knew 336 00:40:36.559 --> 00:40:43.000 it would it that it saw us through the Cold War and their breakup of 337 00:40:43.039 --> 00:40:47.119 the Soviet Union, and the ethnic wars in the Balkans, and help us 338 00:40:47.159 --> 00:40:52.480 fight Harrison in the after month of the nine eleven attacks and the rise of 339 00:40:52.559 --> 00:41:00.159 ISIS, and NATO keeps us safe today as we prepare for a more dangerous 340 00:41:00.199 --> 00:41:06.320 world. Thanks to the collective strength of NATO, we can stand up to 341 00:41:06.519 --> 00:41:12.920 authoritarian powers like Russia and China and make sure that freedom and democracy prevail in 342 00:41:13.039 --> 00:41:17.760 Ukraine. And it's to NATO that we will continue to protect our values, 343 00:41:19.280 --> 00:41:27.079 our nations and our one billion people. Thank you so much. Okay, 344 00:41:27.079 --> 00:41:31.800 we're gonna hear from Tiff Machlin about the Bank Canada and a little bit about 345 00:41:32.000 --> 00:41:40.079 how he goes about completing his chest, adjusting the interest rates and what it 346 00:41:40.159 --> 00:41:47.039 is that he looks at as well, from not just simply what the banks 347 00:41:47.039 --> 00:41:53.480 are doing, but to labor markets, to different markets across Canada, how 348 00:41:53.519 --> 00:42:00.559 they are going to be affected by the change in fluctuations in interest versus the 349 00:42:00.679 --> 00:42:08.360 pricing in how it'll will will affect the people of Canada. Okay, well, 350 00:42:08.440 --> 00:42:13.519 look good afternoon. It is a great pleasure to be here today, 351 00:42:13.679 --> 00:42:23.440 is of course Saint Jean Baptiste Bon fed at douak manitobia in Bon Saint Jean 352 00:42:23.519 --> 00:42:36.760 atut aatus. When I started as Governor of the Bank of Canada on June 353 00:42:36.840 --> 00:42:40.159 third, twenty twenty, the economy was in crisis. It was early in 354 00:42:40.159 --> 00:42:46.599 the pandemic, and Canada's unemployment rate was fourteen percent, the highest on record. 355 00:42:47.159 --> 00:42:52.199 Inflation was well below the two percent target. It was actually slightly negative. 356 00:42:52.320 --> 00:42:58.639 The immediate priority was to avoid deflation and get the economy back on its 357 00:42:58.639 --> 00:43:04.719 feet. But since twenty twenty twenty, since twenty twenty two, we are 358 00:43:05.079 --> 00:43:09.480 fighting a new battle high inflation. When the economy reopened, the combination of 359 00:43:09.480 --> 00:43:15.159 gum up global supply chains, a strong surgeon demand, and Russia's unprovoked invasion 360 00:43:15.239 --> 00:43:22.760 of Ukraine sent inflation sharply higher. It peaked at just over eight percent in 361 00:43:22.880 --> 00:43:27.840 June twenty twenty two. For more than two years now, our focus has 362 00:43:27.880 --> 00:43:34.480 been getting inflation back down. We've come a long way. Monetary policy has 363 00:43:34.519 --> 00:43:38.360 worked and it's continuing to work. Since January, inflation has been below three 364 00:43:38.400 --> 00:43:46.079 percent and our measures of underlying inflation have eased steadily. This has increased our 365 00:43:46.119 --> 00:43:52.039 confidence that inflation will continue to move closer to the two percent target this year, 366 00:43:52.800 --> 00:43:55.440 and as Jeannette underlined a couple of times earlier, this month, we 367 00:43:55.480 --> 00:44:00.800 lowered our policy interest rate for the first time in four years. Low, 368 00:44:00.840 --> 00:44:07.280 stable and predictable inflation allows Canadians to spend and invest with confidence. It lowers 369 00:44:07.360 --> 00:44:14.679 uncertainty and encourages long term investment, and it contributes to sustained job creation and 370 00:44:14.760 --> 00:44:19.280 greater productivity. This in turn leads to improvements in our standard of living. 371 00:44:20.400 --> 00:44:25.760 That's why price stability is our number one priority. A key ingredient for price 372 00:44:25.760 --> 00:44:30.679 stability is a healthy labor market, one in which Canadians have the jobs they 373 00:44:30.719 --> 00:44:36.719 want, employers have the workers they need, and wages are growing in line 374 00:44:36.840 --> 00:44:43.079 real wages are growing in line with productivity. Economists call this maximum sustainable employment, 375 00:44:43.360 --> 00:44:47.960 the highest level of employment the economy can sustain without triggering inflationary pressures. 376 00:44:51.199 --> 00:44:53.199 The health of the Canadian labor market is what I'm going to talk about today. 377 00:44:54.159 --> 00:44:59.960 In the twenty twenty one renewal of our monetary policy framework, the Federal 378 00:45:00.079 --> 00:45:06.639 government and the Bank of Canada agreed price stability is our primary objective. We 379 00:45:06.679 --> 00:45:13.159 also agreed monetary policy should continue to support maximum sustainable employment. Since then, 380 00:45:13.519 --> 00:45:17.400 we've done extensive work to bolster our analysis labor markets. We publish new a 381 00:45:17.440 --> 00:45:22.480 new dashboard of labor market indicators, and we've updated those benchmarks each year. 382 00:45:24.599 --> 00:45:30.480 So where are we now and what's ahead? With higher interest rates, spending 383 00:45:30.559 --> 00:45:35.880 is cooled and businesses have scaled back their hiring plans. Strong immigration has also 384 00:45:36.000 --> 00:45:40.599 helped the supply of workers catch up with demand, bringing the labor market into 385 00:45:40.719 --> 00:45:46.559 better balance. But it's now getting harder to find a new job, and 386 00:45:46.639 --> 00:45:52.480 that's particularly affecting younger workers and newcomers to Canada. And it suggests the economy 387 00:45:52.599 --> 00:46:00.440 now has room to grow without building new inflationary pressures. If we look at 388 00:46:00.440 --> 00:46:04.679 the labor market over the longer term, what we see is that Canada's growing, 389 00:46:04.880 --> 00:46:09.000 inclusive and well educated labor force has been a key advantage for our economy. 390 00:46:09.360 --> 00:46:15.039 It's been our primary source of growth for the past twenty five years, 391 00:46:15.079 --> 00:46:21.119 and sustaining this advantage is critical to achieving strong non inflationary growth going forward. 392 00:46:22.480 --> 00:46:24.960 Well that's my speech in a nutshell. So if that's all you need, 393 00:46:25.480 --> 00:46:30.480 you can start checking your smartphone. But if you're willing to stick with me 394 00:46:30.559 --> 00:46:32.800 for another fifteen minutes or cell, I'm going to take a closer look at 395 00:46:32.800 --> 00:46:39.239 Canadian Canada's labor market, both in the short run and the longer term. 396 00:46:39.519 --> 00:46:53.559 Call that Fermi Canada do million de person old vule de travairi gas o vaccine 397 00:46:53.800 --> 00:47:04.679 il mess exception, marchi travais saved say tree rapid man can economy a complete 398 00:47:04.880 --> 00:47:12.840 complete man ruvi the marchais a vis pass to the reprice alas show the damanda 399 00:47:12.960 --> 00:47:22.079 robandi pascala reprene les activity ve monke d de confine man leasond reprice ave du 400 00:47:22.159 --> 00:47:28.960 mal a trouve personnel to the homage is on you cat lgol person an the 401 00:47:29.079 --> 00:47:37.239 mill vender se cre contrave patue, the pulses for sometis tutu coup I think 402 00:47:37.360 --> 00:47:43.559 a million, the past back und the penny re demander so dive the prison 403 00:47:43.639 --> 00:47:49.480 plugraph the sALS some mes a greenpe a le fla at the percy with person 404 00:47:50.000 --> 00:47:59.840 as plufari leconomy at Clerma, show the maps, the mill vender la ban 405 00:48:00.079 --> 00:48:09.440 abuku aug Monte sonto director pro fel bassel the mont i repression sole primers frene 406 00:48:09.760 --> 00:48:15.920 de pance, this employer on comma say a signally moi de penri the personnel 407 00:48:16.679 --> 00:48:22.400 lut the post back count edition you prosh the samoan historic ellen flacion a bass 408 00:48:24.760 --> 00:48:30.400 a messieur clet post backcount bass to the chamage seemes aug Monte, you needed 409 00:48:30.440 --> 00:48:36.360 a sis ver good person les more passe sa just ou de SIUs to to 410 00:48:36.559 --> 00:48:45.960 the avanti count le marche de travai pros to nivoudo durabe maximalba to the chamagee 411 00:48:46.280 --> 00:48:53.039 the cat del person arm me crest emperor a sukil just av the debut to 412 00:48:53.159 --> 00:49:00.679 Poundmi. In November twenty twenty two, when we were raising our poll interest 413 00:49:00.760 --> 00:49:05.039 rate rapidly, I gave a speech about how we expected the labor market to 414 00:49:05.159 --> 00:49:09.679 adjust to higher interest rates and slower growth. I said that while the adjustment 415 00:49:09.719 --> 00:49:15.400 wouldn't be without some pain, it need not involve a sharp rise in the 416 00:49:15.519 --> 00:49:20.280 unemployment rate. With vacancies so high, much of the adjustment could come from 417 00:49:20.360 --> 00:49:27.119 businesses taking down job postings rather than laying off workers. This was based on 418 00:49:27.199 --> 00:49:31.960 what economists call the beverage curve, which shows that typically inverse relationship between job 419 00:49:32.119 --> 00:49:37.719 vacancies and the unemployment rate. The evolution of beverage curve, as you can 420 00:49:37.800 --> 00:49:42.039 see in this chart, is a bit complicated, but it provides some insight 421 00:49:42.159 --> 00:49:46.599 into why the overall labor market has adjusted relatively smoothly to slower growth. So 422 00:49:46.760 --> 00:49:51.920 let me walk you through it. Before the pandemic, the economy was near 423 00:49:52.000 --> 00:49:57.320 full employment. Vacancies as a percentage of the labor force and the unemployment rate 424 00:49:57.400 --> 00:50:01.039 were both fairly low. That's the blue diamonds near the middle of the black 425 00:50:01.159 --> 00:50:07.519 curve. The pandemic severely disrupted the labor market. The unemployment rate rose rapidly 426 00:50:07.599 --> 00:50:13.119 to just about fourteen percent in May twenty twenty. That's the purple dot on 427 00:50:13.199 --> 00:50:19.840 the far right. With this disruption in the labor market, the entire beverage 428 00:50:19.880 --> 00:50:23.079 curve shifted up into the right. We moved from the black curve to the 429 00:50:23.239 --> 00:50:30.199 orange curve. As the economy gradually reopened, job vacancies rose slightly and the 430 00:50:30.320 --> 00:50:35.639 unemployment rate came down quickly. This is reflected in movement from right to left 431 00:50:35.719 --> 00:50:42.880 along the orange beverage curve that's the orange triangles. As the economy reopened fully, 432 00:50:42.920 --> 00:50:46.079 the beverage curve shifted back down with less disruption. We began to see 433 00:50:46.159 --> 00:50:52.559 better matching between job seekers and job vacancies, and we moved from the orange 434 00:50:52.639 --> 00:50:57.679 curve back down to the black curve. The unemployment rate fell to a fifty 435 00:50:57.760 --> 00:51:00.400 year low of four point eight percent. That's the dot at the top left 436 00:51:01.159 --> 00:51:07.039 on the black beverage curve. And as they said, we moved from the 437 00:51:07.159 --> 00:51:13.400 orange back to the old black curve. As we raised interest rates in the 438 00:51:13.480 --> 00:51:17.920 economy, cool businesses started to scale back job postings, and higher immigration helped 439 00:51:17.960 --> 00:51:24.800 fill job vacancies. The combined effect saw vacancies decline considerably, moving down the 440 00:51:24.960 --> 00:51:30.519 steep part of the beverage curve. That's the green dots on the black curve. 441 00:51:30.360 --> 00:51:35.320 We're now approaching the same part of the curve that we were in before 442 00:51:35.480 --> 00:51:40.000 the pandemic. The red dot is our most recent data point May twenty twenty 443 00:51:40.039 --> 00:51:45.480 four. Okay, so what does all this dynamic mean. Well, when 444 00:51:45.480 --> 00:51:49.519 the unemployment rate is very low and job vacancies are very high, as they 445 00:51:49.559 --> 00:51:53.239 were when the economy was overheated. The curve is steep, so when you 446 00:51:53.360 --> 00:52:00.559 see the green dots moving down without moving much to the right, that means 447 00:52:00.679 --> 00:52:06.639 vacancies can come down a lot with only a relatively small increase in unemployment. 448 00:52:07.320 --> 00:52:13.800 This is a soft landing scenario. It's always been a narrow path and we 449 00:52:13.960 --> 00:52:17.840 have yet to fully stick the landing. Looking forward, the unemployment rate could 450 00:52:17.960 --> 00:52:23.400 rise further, particularly as the beverage curve is getting flatter, but we continue 451 00:52:23.440 --> 00:52:27.599 to think that we don't need a large rise in the unemployment rate to get 452 00:52:27.599 --> 00:52:30.719 inflation back to the two percent target. Inflation is not yet two percent, 453 00:52:31.480 --> 00:52:36.760 but it is a lot closer, and with further and sustained easing and underlying 454 00:52:36.800 --> 00:52:42.400 inflation in recent months, we are more confident that inflation will continue to move 455 00:52:42.519 --> 00:52:49.239 closer to the target. So now turning to wage dynamics. When the labor 456 00:52:49.320 --> 00:52:52.360 market was tight and inflation was high, wage growth increased, and depending on 457 00:52:52.440 --> 00:52:55.960 the measure you look at, wage growth peaked between four and a half and 458 00:52:57.039 --> 00:53:01.480 six percent. This was roughly twice the pre pandemic average of two to three 459 00:53:01.519 --> 00:53:07.360 percent. With inflation now much lower and the labor market coming into better balance, 460 00:53:08.280 --> 00:53:13.159 we are starting to see evidence the wage growth is moderating. The latest 461 00:53:13.239 --> 00:53:17.199 numbers on a six month basis suggest wage growth has eased to about four percent. 462 00:53:19.159 --> 00:53:22.960 This is clearly down from the peak, but still above the pre pandemic 463 00:53:22.039 --> 00:53:28.320 average. Now, the fact that wages are moderating more slowly and inflation is 464 00:53:28.440 --> 00:53:32.440 not sorry. The fact that wages are moderating more slowly than inflation is not 465 00:53:32.719 --> 00:53:38.360 itself surprising. Wages tend to lag adjustment in employment. Going forward, we 466 00:53:38.559 --> 00:53:45.199 will be looking for wage growth to moderate further. In assessing the implications of 467 00:53:45.239 --> 00:53:50.760 wage growth for labor costs and inflation, it is important to separate out wage 468 00:53:50.800 --> 00:53:55.320 gains that reflect productivity improvements. Wage gains that are backed by productivity gains do 469 00:53:55.480 --> 00:54:02.199 not increase labor costs or inflationary pressures. In recent years, the number of 470 00:54:02.360 --> 00:54:07.239 higher paying jobs in the economy has grown more than the number of lower paying 471 00:54:07.360 --> 00:54:12.719 jobs, and what that means is that overall wage growth has been higher. 472 00:54:13.519 --> 00:54:16.679 To the extent that this reflects workers gaining valuable news skills or finding jobs that 473 00:54:16.760 --> 00:54:22.239 better match their skills, it shouldn't add to you to labor costs and inflation. 474 00:54:22.199 --> 00:54:27.760 So when we're assessing the inflationary implications of wage growth. We place more 475 00:54:27.880 --> 00:54:34.639 weight on wage measures that try to control for occupational shifts or labor cost measures, 476 00:54:35.440 --> 00:54:39.000 and these are running a little lower than other wage measures, particularly if 477 00:54:39.039 --> 00:54:45.559 you use the more timely six months rates of change. So that's the broad 478 00:54:46.039 --> 00:54:52.360 adjustment in the labor market. It's been relatively it's been a relatively smooth cooling, 479 00:54:53.000 --> 00:54:58.960 but the aggregate masks some important differences. Some workers are feeling to slow 480 00:54:59.000 --> 00:55:04.079 down more than other. Employers may not be laying off workers in large numbers, 481 00:55:05.159 --> 00:55:08.599 but less hiring over the last year means it's harder to find that first 482 00:55:08.920 --> 00:55:14.760 job. That hurts new graduates and younger workers, as well as newcomers to 483 00:55:14.840 --> 00:55:19.119 Canada. So let me take a moment to dig into some detail here. 484 00:55:20.760 --> 00:55:24.360 The unemployment rate for newcomers is rising much faster than the overall unemployment rate. 485 00:55:24.599 --> 00:55:30.000 Newcomers are taking longer to find a job. Look that's hard on them. 486 00:55:30.440 --> 00:55:35.960 It's making it more difficult to integrate into the Canadian economy. It also suggests 487 00:55:36.000 --> 00:55:39.199 that the government has some room to slow the growth of non permanent residents without 488 00:55:39.280 --> 00:55:47.320 tightening the labor market too much and causing significant labor shortages. If you look 489 00:55:47.360 --> 00:55:53.280 at younger workers, youth employment has also been softening again. The evidence suggests 490 00:55:53.280 --> 00:55:59.440 that people establishing their jobs are not experiencing much of an increase in unemployment, 491 00:56:00.199 --> 00:56:04.719 but with fewer new job vacancies, it's taking longer for young people entering the 492 00:56:04.800 --> 00:56:08.639 labor market to find a job, so their unemployment rate has risen. It's 493 00:56:08.719 --> 00:56:16.320 now about two percentage points above its pre pandemic average. Now it's worth stressing 494 00:56:16.440 --> 00:56:23.639 that labor market adjustments are never evenly distributed and monetary policy can't target specific parts 495 00:56:23.679 --> 00:56:29.119 of the labor market. But as we set monetary policy, the bank needs 496 00:56:29.199 --> 00:56:34.960 to look beyond the aggregate to understand what this cooling in the labor market means 497 00:56:35.039 --> 00:56:39.760 for different people. The overall unemployment rate is close to its pre pandemic level, 498 00:56:39.800 --> 00:56:45.360 and it's still relatively low, but the slowdown in hiring has led to 499 00:56:45.480 --> 00:56:51.280 increases in the unemployment for younger workers and newcomers to Canada. These workers are 500 00:56:51.320 --> 00:56:54.480 feeling the effects of slower growth more than others, and we need to recognize 501 00:56:54.519 --> 00:57:00.840 this. This matters for monetary policy because it indicates there is some slack in 502 00:57:00.920 --> 00:57:07.320 the labor market that suggests the economy has room to grow and add more jobs 503 00:57:07.639 --> 00:57:14.079 without creating new inflationary pressures. It also matters for household financial stress. People 504 00:57:14.119 --> 00:57:17.360 who find it hard to get a job often find it harder to keep up 505 00:57:17.599 --> 00:57:22.960 with their credit card and other debt payments. Many indicators of financial stress declined 506 00:57:23.000 --> 00:57:28.440 during the pandemic, but they're now back to around where they were before the 507 00:57:28.519 --> 00:57:32.599 pandemic, and late payments for credit cards and auto loans are actually above pre 508 00:57:32.760 --> 00:57:38.800 pandemic levels. We see this stress particularly among renters, and these are often 509 00:57:39.559 --> 00:57:47.400 these younger workers and newcomers to Canada. So let me now shift gears. 510 00:57:47.480 --> 00:57:51.840 That was a short run I'm going to pivot to looking at the labor market 511 00:57:51.880 --> 00:57:59.000 from a longer run perspective. For years, Canada's biggest economic advantage has been 512 00:57:59.159 --> 00:58:02.719 its labor force, and that includes people with jobs and people who are looking 513 00:58:02.840 --> 00:58:07.159 for jobs. Growth and employment in Canada has been much stronger than in the 514 00:58:07.280 --> 00:58:13.719 United Kingdom, the Euer Area, and even the United States and has been. 515 00:58:13.920 --> 00:58:17.760 This was true before the pandemic, and it was true through the pandemic 516 00:58:17.840 --> 00:58:27.760 recovery. Our labor force advantage reflects three key strengths. High labor market participation, 517 00:58:28.559 --> 00:58:31.119 strong immigration, and a good education system. So let me take each 518 00:58:31.159 --> 00:58:37.119 of these in turn. First, Canada's labor force participation is stronger than in 519 00:58:37.239 --> 00:58:42.480 these other countries. Our participate participation rate for women is at the top of 520 00:58:42.519 --> 00:58:45.960 the G seven, and that's been helped by affordable childcare and flexible work arrangements. 521 00:58:47.360 --> 00:58:52.440 Second, Canada tracts some of the world's best and brightest students and workers, 522 00:58:52.280 --> 00:58:57.639 and we actually integrate them relatively quickly into the Canadian economy compared to many 523 00:58:57.719 --> 00:59:02.440 other countries. On Our education system does a good job overall of developing the 524 00:59:02.519 --> 00:59:07.920 workers the economy needs and businesses want to hire. Our post secondary attainment level 525 00:59:08.000 --> 00:59:13.480 in Canada is the highest among advanced economies, although we do trail the United 526 00:59:13.480 --> 00:59:22.360 States in the attainment of advanced degrees. Our Achilles heel is productivity. We 527 00:59:22.519 --> 00:59:27.119 have been very good at growing our economy by adding workers. We've been much 528 00:59:27.199 --> 00:59:31.239 less successful at increasing output per worker, and this is catching up to us. 529 00:59:32.360 --> 00:59:37.440 While we manage to make up for our productivity under performance from twenty to 530 00:59:37.480 --> 00:59:40.880 twenty nineteen with strong labor force growth. Since the pandemic, GDP growth in 531 00:59:40.960 --> 00:59:46.199 Canada has been weaker than in the United States. As my colleague, Senior 532 00:59:46.239 --> 00:59:52.519 Deputy Governor Carolyn Rodgers highlighted in March week, productivity growth in Canada is a 533 00:59:52.719 --> 00:59:59.840 long standing issue and it's reaching emergency levels. As good as we've been a 534 01:00:00.079 --> 01:00:05.800 growing our economy by adding workers, we need more than one engine moving forward. 535 01:00:06.840 --> 01:00:09.400 As any great hockey coach would tell you, we need to play to 536 01:00:09.480 --> 01:00:14.719 our strengths, and that's growing our labor force. While we tackle our weaknesses 537 01:00:15.679 --> 01:00:22.519 investment and productivity. We should not take our labor market strengths those advantages. 538 01:00:22.599 --> 01:00:24.960 We should not take them for granted. We need to maintain and build on 539 01:00:25.079 --> 01:00:31.239 them. That means continuing to improve the accessibility of childcare. It means considered 540 01:00:31.239 --> 01:00:37.159 efforts to improve labor force participation of groups that have traditionally been left out, 541 01:00:37.719 --> 01:00:42.559 and here I'm thinking especially of Canada's Indigenous peoples, a growing pool of young 542 01:00:42.679 --> 01:00:49.800 talent who have been excluded from economic opportunities for too long. It means aligning 543 01:00:49.840 --> 01:00:53.639 immigration to long standing labor shortages in key areas like skilled trades. It means 544 01:00:53.800 --> 01:01:01.719 properly recognizing credentials and qualifications and experience of imigrants. And it means sustaining and 545 01:01:01.920 --> 01:01:07.320 enhancing our education system and ensuring it is developing students for the jobs of the 546 01:01:07.400 --> 01:01:15.039 future. Tackling our productivity problem will be harder, but it is vital. 547 01:01:15.679 --> 01:01:21.199 Productivity growth ensures our businesses are competitive in international markets, It pays for higher 548 01:01:21.239 --> 01:01:25.679 wages, and it underpins rising standards of living. And with an aging population 549 01:01:25.880 --> 01:01:30.400 and limits to how many immigrants we can absorb each year, improving our productivity 550 01:01:30.440 --> 01:01:37.800 growth will become more important to sustained trend growth in Canada. Now, on 551 01:01:37.920 --> 01:01:42.480 the surface, the cause of low productivity growth in Canada is clear enough. 552 01:01:43.360 --> 01:01:49.440 On averages. On average, businesses in Canada invest much less per worker than 553 01:01:49.480 --> 01:01:53.039 they do in the United States, and with less investment in mach machinery and 554 01:01:53.079 --> 01:02:00.559 equipment, particularly information and communication technology, workers in Canada have less and less 555 01:02:00.719 --> 01:02:07.519 and older machines and computers to work with, and weaker investment in intellectual property 556 01:02:07.599 --> 01:02:13.119 means they have fewer innovations to help them work smarter, faster and more efficiently. 557 01:02:14.679 --> 01:02:19.920 So it's not surprising they're less productive. But the deeper question is why 558 01:02:20.079 --> 01:02:23.880 have we had systematically less investment in Canada than in the United States, Or 559 01:02:23.960 --> 01:02:30.920 to put the question in the positive, how do we make Canada more investable. 560 01:02:30.920 --> 01:02:36.880 Finding answer these questions is going to be critical to if we want to 561 01:02:36.960 --> 01:02:45.239 increase non inflationary growth and raise the standard of living of Canadians. It's time 562 01:02:45.320 --> 01:02:52.119 for me to conclude price stability is our primary mandate and a healthy labor market 563 01:02:52.360 --> 01:02:58.719 and price stability go hand in hand. If employment is well below its maximum 564 01:02:58.760 --> 01:03:02.559 sustainable level, the economy is missing jobs and incomes, and this puts downward 565 01:03:02.639 --> 01:03:08.039 pressure on inflation, pushing it below or two percent target. That's what happened 566 01:03:08.039 --> 01:03:14.559 early in the pandemic. When the economy is operating above maximum sustainable employment, 567 01:03:14.760 --> 01:03:17.800 businesses aren't able to find the workers they need to keep up with demand. 568 01:03:19.360 --> 01:03:23.519 That puts upward pressure on prices and pushes inflation above our target. That's where 569 01:03:23.559 --> 01:03:30.599 we were in twenty twenty two. Jelis le flacient a boucou pre de de 570 01:03:30.719 --> 01:03:42.199 pos epuscil economy at the capacity capacity in liz On Laquatre sound duel graduate to 571 01:03:42.360 --> 01:03:51.480 le flacient only pa Alcoho tute Fla Mayon, Papas Savoir a On Papos Savoir 572 01:03:52.000 --> 01:04:02.079 sid of stac Mayon, Saint Etreslavois and the Lise marchial de travaill so different 573 01:04:02.320 --> 01:04:13.159 angle a tree decision, the politics monetarer a lotewn la sante marchi travail la 574 01:04:13.280 --> 01:04:21.519 fte expansion no inflationists to the economy. Canadian c con arrive tre economy ver 575 01:04:23.599 --> 01:04:30.519 a grandissaint remind bogarde se tavantage info continuing I am vesteel down a trois grand 576 01:04:30.639 --> 01:04:40.880 false. Marchi de travai inclusive judicious in system did you cacion robust a accessible 577 01:04:43.440 --> 01:04:50.440 problem? The productivity to continuan the missi so set false. Today, inflation 578 01:04:50.599 --> 01:04:55.480 is much closer to the two percent target, and with some slack in the 579 01:04:55.519 --> 01:04:59.760 economy, there is room for the Canadian economy to grow and add more jobs. 580 01:05:00.400 --> 01:05:03.920 Even as inflation continues to move closer to the target, We're not yet 581 01:05:04.000 --> 01:05:08.119 back to two percent, and we can't rule out that there will be some 582 01:05:08.239 --> 01:05:12.719 new bumps along the way, but increasingly we look to be on our way. 583 01:05:14.000 --> 01:05:17.800 Assessing the health of the labor market from various angles is an important input 584 01:05:18.039 --> 01:05:25.159 into our monetary policy decisions beyond the near term. A healthy labor market is 585 01:05:25.280 --> 01:05:30.719 critical to strong non inflationary growth in Canada. We've been successful at expanding our 586 01:05:30.760 --> 01:05:34.639 economy by growing our labor force. To sustain this advantage, we need to 587 01:05:34.760 --> 01:05:41.280 keep investing in an inclusive labor market, smart immigration, and a strong and 588 01:05:41.400 --> 01:05:47.719 accessible education system. Let's not take these for granted as we tackle our productivity 589 01:05:47.800 --> 01:06:15.840 problem. Thank you. Okay, final thoughts security. There was a president 590 01:06:15.920 --> 01:06:21.679 I believe there was a president in the past that said, if you want 591 01:06:21.760 --> 01:06:28.679 security, that there are prisons across the country to help keep you secure. 592 01:06:30.639 --> 01:06:36.960 Okay. The bottom line message to that is that the more we increase security, 593 01:06:39.639 --> 01:06:47.000 the more freedoms we are actually going to lose. We have to find 594 01:06:47.280 --> 01:07:00.480 ways to police ourselves before something comes along and forms of regulation. The more 595 01:07:00.519 --> 01:07:03.559 that we have government involved in our daily lives, the less freedoms we actually 596 01:07:03.639 --> 01:07:11.960 do have. The more laws that are created, the less wiggle room we 597 01:07:12.159 --> 01:07:24.519 have to be ourselves. I'm not putting this out there as a revolt against 598 01:07:25.039 --> 01:07:30.119 government, but I'm asking for people to do is to start voting for smaller 599 01:07:30.239 --> 01:07:39.159 government to limit the roles that government actually has in our lives. And the 600 01:07:39.280 --> 01:07:44.800 way to do that not only by voting, but also by settlling disputes with 601 01:07:45.199 --> 01:07:51.239 those that are around us among ourselves without violence, by talking things out and 602 01:07:51.400 --> 01:08:00.000 setlling things by coming to agreements and standing by those agreements with our own neighbors. 603 01:08:01.519 --> 01:08:08.280 Some of what we're asking our government to actually do can be done by 604 01:08:09.000 --> 01:08:15.000 ourselves. Some of what we're asking our governments to do on a much greater 605 01:08:15.199 --> 01:08:21.600 scale, global scale, actually starts with us doing it with our neighbors around 606 01:08:21.720 --> 01:08:30.680 us. By coming to agreements among ourselves, we can actually project that in 607 01:08:30.880 --> 01:08:44.760 ways so that we see fewer armed conflicts settling global agreements. We hear terminology 608 01:08:45.880 --> 01:08:55.880 being used the illegal evasion of Ukraine by the Russian Federation and Vladimir Putin. 609 01:08:58.920 --> 01:09:09.039 But when we look at the rhetoric that around this, why are we not 610 01:09:09.199 --> 01:09:18.560 hearing how illegal the invasion of Gaza is. No one wrote down on a 611 01:09:19.199 --> 01:09:27.239 piece of paper saying here, here's express written permission for Israel to attack Gaza. 612 01:09:30.479 --> 01:09:36.439 At the same time, no one gave express written permission for the Hamas 613 01:09:36.800 --> 01:09:51.119 to go take hostages and invade the Israeli territories. Why is it so important 614 01:09:51.159 --> 01:09:59.640 that we point out how illegal the invasion was. With Vladimir Putin, we 615 01:09:59.800 --> 01:10:04.600 have to be careful with what we see in rhetoric and how it is things 616 01:10:04.720 --> 01:10:13.800 are projected, how we place sanction, we watch our government place sanctions against 617 01:10:13.920 --> 01:10:19.640 other governments, our agreements to these things. We have to make sure that 618 01:10:19.800 --> 01:10:27.279 our government is acting in fair and equal ways. And one of the ways 619 01:10:27.479 --> 01:10:34.239 to ensure that our government is won by shrinking how our government can can affect 620 01:10:34.359 --> 01:10:40.439 our lives. By putting more government officials in charge of the Internet, what 621 01:10:40.640 --> 01:10:45.039 we are essentially doing is we are handing over the keys of control of the 622 01:10:45.159 --> 01:10:53.560 information that we are allowed to see to the corporations who are already governing the 623 01:10:53.800 --> 01:11:02.720 Internet, by those corporations that are creating the algorithms to begin with, the 624 01:11:02.800 --> 01:11:09.399 Secretary of General of the United Nations says that we should should start to see 625 01:11:09.560 --> 01:11:15.520 these algorithms be freer so that the majority, more of the majority of people 626 01:11:15.640 --> 01:11:25.000 can be heard. But by placing more and more government regulations to the Internet, 627 01:11:25.399 --> 01:11:30.079 we will actually see more and more corporate messages appear, because they are 628 01:11:30.119 --> 01:11:38.359 the corporations who created the message the algorithms. To begin with. We need 629 01:11:38.479 --> 01:11:45.640 to be careful about how we see security and what we're asking for insecurity. 630 01:11:49.279 --> 01:11:56.720 And that's the bottom line is if we want to maintain our freedom, we 631 01:11:56.920 --> 01:12:02.439 have to be careful of the regulations and the laws that we're asking from our 632 01:12:02.520 --> 01:12:11.479 government. Thank you for listening to Bolt and writes her own Depictions Media Radio, 633 01:12:11.520 --> 01:12:49.479 I've been your host, Michael Cloggs. This show has been produced by 634 01:12:49.640 --> 01:12:57.359 Depictions Media. Please contact us at depictions dot media for more information