Mr. Speaker, as the member pointed out, employment in Quebec continues to be below its pre-recession peak. This is an unacceptable situation, which this government intends to correct.
The weak employment situation in the province reflects the loss of 135,000 jobs and the rise in the unemployment rate of more than four percentage points in the three and a half years prior to the election of this government.
In less than a year since this government was elected, over half that loss has been recovered. From October 1993 to September 1994, full-time employment has increased by 102,000 in Quebec and the unemployment rate has fallen a full percentage point, from 13.2 per cent to 12.2 per cent).
At this rate Quebec will reach its pre-recession peak in seven months. The recent strong employment growth in Quebec and across Canada has been helped by this government's freezing of the UI premiums below the required statutory rate in 1994; and the implementation of the $6 billion Federal Infrastructure Program to encourage capital expenditures.
Employment growth will be further helped by a rollback in the UI premium rate in 1995, as announced in the 1994 Budget.
The changes in the UI program announced in the last budget and the additional changes which will result from Minister Axworthy's social security reform will allow further reduction in UI premiums in the future. Because of lower payroll taxes, businesses in Quebec will find it easier to create jobs.
We have reasons to be optimistic that employment growth will continue. Employment growth in the past two quarters has been the strongest in more than five years.
Furthermore, growth in the economy is gaining momentum. In the second quarter, the real GDP grew 6.4 per cent (annual rate), up strongly from about four per cent in the previous two quarters and in 1993 as a whole.
All sectors of the economy are now contributing to and reinforcing the growth in employment. Surging exports led to a record real trade surplus in July. Strong growth in current and planned investments in non-residential construction indicates firms are beginning to expand their production capacity, which will require more employees.
Improving employment prospects have boosted consumer confidence and consumer spending.
However, for Quebec to share fully in the strong employment growth outlook for the Canadian economy as a whole, the political uncertainty about Quebec's future within Canada needs to be resolved.