Dear John,

Average income in Atlantic Canada has typically trailed behind the rest of Canada.

Did you know that from 1997 to 2010, Atlantic Canada was closing the economic gap with the rest of the country?

But since 2011, the region has been falling behind again. Why?

From 1997 to 2010, there were significant Employment Insurance reforms and reduced government spending, which left more room for private sector growth.

But since 2010, government spending in the Maritime provinces has been on the rise again, and the Employment Insurance reforms of the previous period have, in some cases, been weakened.

As a result, unemployment is increasing faster in Atlantic Canada than elsewhere in the country, and average incomes are falling behind again.

See specifically how far the average income has fallen by checking out the latest Fraser Institute study here.

Sincerely,

Niels Veldhuis
President
The Fraser Institute