Credit growth soars Rs 2lah crore in Sept, but liquidity hit in last fortnight

MUMBAI: There is all-round growth in lending with bank credit rising by Rs 2.05 lakh crore in September 2018. This is nearly 70% of the Rs 2.95-lakh-crore credit growth during the first half of FY19. However, even as banks see galloping credit growth, liquidity in the system is not keeping pace, resulting in banks remaining cash-deficit in the money markets for the last fortnight.
The Reserve Bank of India (RBI) on Wednesday released the sectoral deployment of bank credit, which shows that there was a sharp pickup in economic activity in September. Bank credit as of September this year was Rs 80.25 lakh crore, up over Rs 2 lakh crore from Rs 78.19 lakh crore in the previous month. In September 2017, it was Rs 72.13 lakh crore.

Although the banking system had moved to a liquidity surplus of almost Rs 50,000 crore in early October following some easing by the RBI, the situation reversed in the last fortnight with the deficit crossing the Rs 1-lakh-crore mark last week. Part of the reason for the credit surge is an increase in loans to non-banking finance companies (NBFCs), which shifted their borrowings to banks after liquidity dried up in the debt market.

Growth

However, even if the Rs 50,300-crore of additional loans to NBFCs in September were taken out of the credit growth in that month, the rise in advances is still substantial. Of the remaining Rs 1.5-lakh-crore growth, Rs 10,000 crore went to large corporates, Rs 27,500 crore went to retail, another Rs 16,000 crore went to infrastructure, including construction, and around Rs 9,000 crore to chemicals.

“The sharp growth in credit across sectors shows that something is cooking in the economy,” said SBI chief economist Soumya Kanti Ghosh. The sectoral data for the month of September indicate that all are showing a growth in credit. Most of the credit offtake happened in the NBFC and large corporate business segments. Credit to major sub-sectors such as ‘infrastructure’, ‘textiles’, ‘chemical & chemical products’ and ‘all engineering’ accelerated.

On a year-on-year basis, credit growth at 14.4% has been at a four-year high. Deposit growth has, however, not kept pace, growing at only 8.9%, which is slower than 9.2% last year. “There is a liquidity crisis. System liquidity being in deficit mode along with relentless FII outflow is imparting an upward bias in government bond yields. This bias is worrisome and the central bank should take cognisance of this when the global environment remains uncertain,” said Ghosh.

Besides FII outflows, what is precipitating liquidity shortfall is the sharp foreign exchange market intervention. Together, these may have drained up to $13 billion, which is roughly Rs 96,200 crore from the system.

One of the triggers for the surge in bank lending appears to be the problems faced by the finance companies in the wake of the IL&FS default. With mutual fund support to finance companies drying up, their lending capacity has shrunk and banks are stepping in to fill the void.

Given the situation, the Confederation of Indian Industry made a representation to the RBI on Wednesday, seeking bank investment in securitised assets of finance companies, refinance support by National Housing Bank and liquidity infusion by the RBI.

‘Need location, identity of those sending provocative messages’

NEW DELHI: The government on Wednesday told WhatsApp that it needs the location and identity of those misusing the messaging platform to spread fake news, even as it does not want decryption of the messages.

IT Minister Ravi Shankar Prasad, who met WhatsApp VP Chris Daniels, also asserted that the “institutional integrity” of the platform be maintained ahead of elections.

“On the issue of traceability, I emphasised that when we talk of traceability, we don’t talk of decrypting messages … We insist rather on location and identification of the sender of WhatsApp messages when such messages lead to provocation of violence, heinous offences, and other serious crimes,” Prasad said.

The minister added that he has been assured by the WhatsApp leadership team that they “will look into the matter” and revert.

The Facebook-owned company has been under pressure for months now to put in place a mechanism to curb fake messages on its platform following multiple incidents of mob lynching across the country.

The government has already slapped two notices on WhatsApp, with the second one warning that it will treat the messaging platform as an abettor of rumour propagation if adequate checks are not put in place.

Prasad had met Daniels in August this year too, and apart from the traceability request, he had asked WhatsApp to set up a local corporate entity and appoint a grievance officer to address complaints.

“They have assured us that they have appointed a grievance officer for India. I have suggested that we will appreciate if the grievance officer is also located in India,” Prasad said.

Canada’s GDP edged up a modest 0.1 per cent in August

The energy and financial sectors helped boost Canadian economic growth in August despite weakness in manufacturing due to auto assembly plant shutdowns.

Statistics Canada said Wednesday real gross domestic product edged up 0.1 per cent in August, the seventh consecutive month to see an increase.

Economists had expected no change for the month, according to Thomson Reuters Eikon.

Growth in oil and gas extraction and the finance and insurance sector helped to more than offset declines in 12 of the 20 industrial sectors tracked.

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READ MORE: RBC CEO says Canada’s energy sector could deliver billions in new revenue if it gets support

Overall, Statistics Canada says services-producing industries edged up 0.1 per cent, while goods-producing industries were essentially unchanged.

CIBC chief economist Avery Shenfeld called the August figures “a mixed bag” with the strength in the oil and gas sector offset by weakness in manufacturing.

“Canada’s economy had neither tricks nor treats for market observers on this Halloween release, with August’s GDP growth not scary enough to create fears of a slump, but not strong enough for the Bank of Canada to spook investors with a December rate hike,” Shenfeld wrote in a note to clients.

Helping drive the growth was the mining, quarrying and oil and gas extraction sector which rose 0.9 per cent.

The increase was boosted by a 1.9 per cent gain by the oil and gas extraction subsector including a 3.2 per cent increase in non-conventional oil as crude bitumen and total crude production in Alberta reached record levels.

Watch below: Some videos from Global News’ coverage of the oil industry in Canada.

Also climbing higher was the finance and insurance sector which rose 1.0 per cent in August, the largest monthly gain since May 2017.

On the flip side, the manufacturing sector contracted 0.6 per cent in August due in part to shutdowns at some auto assembly plans in the month.

The construction sector also pulled back by 0.4 per cent in the month, while transportation and warehousing slipped down 0.5 per cent.

The GDP report followed the Bank of Canada’s decision last week to raise its key interest rate target by a quarter of a percentage point to 1.75 per cent and signalled rates are headed higher.

READ MORE: Bank of Canada raises interest rate to 1.75% — signals more hikes imminent

Central bank governor Stephen Poloz has said the current rate is still too stimulative for the improved economy and warned it will rise to what the bank considers its neutral range of between 2.5 and 3.5 per cent.

India jumps 23 spots, now ranks 77 in Ease of Doing Business

NEW DELHI: India has jumped 23 places to 77th rank in the global Ease of Doing Business rankings thanks to feedback from stakeholders that it is now significantly simpler to get construction permits and ship goods across the country’s borders.

The report released by the World Bank makes India one of the biggest gainers in the list that covers 190 countries. Among the BRICS nations, only China, which was last year ranked 78th has logged smarter gains, rising to 46th place. Finally, India has also emerged as the easiest place to do business in South Asia.

2018-10-31

Read: Full report released by World Bank

Including the improvement made last year, India has moved up 53 places in two years and 65 since the Narendra Modi government came to power. The latest rankings will come as a relief for the BJP government that has been battling criticism on the economic front amidst a weak currency and a widening current account deficit, which is the difference between exports and imports, foreign investment flows and remittances. While the rankings are an important ingredient in deciding investments, investors look at multiple factors while deciding on their final destination to set up a factory.

India

India’s 5 big achievements

In the latest rankings, India has improved its ranking on six of the 10 parameters through intensive consultations with municipal bodies in Mumbai and Delhi, where the World Bank conducts its study, along with departments at the Centre and the states.

Indicator wise rank improvement over last year

Investor wealth surges Rs 1.92L cr as stocks recover

NEW DELHI: Investor wealth soared Rs 1.92 lakh crore Wednesday following a sharp rebound in the broader market where the BSE benchmark index rallied 550.92 points.

The 30-share Sensex zoomed 551 points or 1.63 per cent to close at 34,442. In intra-day, the index had fallen by 304 points to 33,587.

Markets rebound as Sensex ends 551 points up; Nifty above 10,350

On the BSE index, HDFC, IndusInd Bank, Infosys, Yes Bank, Sun Pharma and Axis Bank were among the major gainers with their stocks rising as much as 5.51 per cent. Except for Nifty Metal, all the sub-indices ended in green on the NSE platform, gaining as much as 4.07 per cent.

Investor sentiment turned positive after the finance ministry issued a statement to dampen concerns over a spat between the government and the RBI.

Led by the improved sentiment, the market capitalisation (m-cap) of BSE-listed companies surged Rs 1,92,961.33 crore to Rs 1,38,45,109.37 crore.

“After a volatile start, market sharply rebounded led by clarity over the independence of RBI by the government. Rupee pared some losses while strong global cues and stock specific actions supported the market to remain positive,” said Vinod Nair, head of research, Geojit Financial Services Ltd.

From the 30-share basket, 21 stocks ended with gains, led by HDFC, Induslnd Bank, Infosys and Axis Bank.

In the broader market, the S&P BSE midcap index gained 1.56 per cent and the smallcap index rose 1.38 per cent.

At the BSE, 1,613 stocks advanced, while 941 declined and 144 remained unchanged.

Sector-wise, banking, IT, pharma and realty indices drove the market momentum.

Core sector growth slows down to 4-month low in Sept

NEW DELHI: Growth of eight infrastructure sectors slowed down to 4.3 per cent in September, the lowest in the last four months, as production of crude oil and natural gas declined.

Previously, the lowest growth rate was in May 2018 when the core sectors expanded at 4.1 per cent.

Eight infrastructure sectors of coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity had grown by 4.7 per cent in September 2017.

The output of crude oil and natural gas dipped by 4.2 per cent and 1.8 per cent respectively in the month under review, according to the data released by the commerce and industry ministry on Wednesday.

Fertiliser, cement and electricity output grew by 2.5 per cent, 11.8 per cent, and 8.2 per cent, respectively.

However, the growth of coal, refinery products, and steel sectors declined to 6.4 per cent, 2.5 per cent and 3.2 per cent respectively in September.

During April-September 2018, the core sector growth was 5.5 per cent as against 3.2 per cent in the year-ago period.

These eight segments comprise 40.27 per cent of the weight of items included in the Index of Industrial Production (IIP).

Jet Airways gets notices for payment delay, default

NEW DELHI: Cash-strapped Jet Airways on Wednesday said it has received “notices for payment delays/defaults” from few aircraft lessors. The airline said this in a filing to BSE, adding the lessors “are mindful of the challenges currently faced by the Indian aviation industry and they have been supportive of the company’s efforts.” It did not specify the notice was for default and delay for lease of how many aircraft. The company’s shares closed 5.7% lower on BSE Wednesday at Rs 222.30.

The airline is facing heat from other quarters also who are waiting for payment of dues. The GVK lounge at Mumbai Airport for premium flyers has put a notice saying “please note that complimentary access at the GVK Lounge is currently not available for Jet Airways customers only. You may however access the lounge on a paid basis.”

A Jet Airways spokesman said “access to the GVK Lounge at the Chhatrapati Shivaji Maharaj International Airport, Mumbai Terminal 2 is temporarily unavailable. The airline sincerely regrets the inconvenience to its loyal guests and seeks their understanding in the interim, even as it works to reinstate the complimentary access soon.”

In addition, the union of Jet’s Indian pilots — National Aviators’ Guild (NAG) — is holding an open house in Delhi on Wednesday to discuss the issue of salary payment.

On October 19, Jet had told its pilots, aircraft maintenance engineers and senior management that 25% of their September salary will be paid by October 25). No date was been given for clearing the remaining 75% of September and 100% of October pay.

“In continuation of my last mail on the matter, we would like to inform you that the first tranche (25%) of September 2018 salary will be remitted in the forthcoming week on October 25, 2018. While there is a delay in the payment of the September 2018 payroll, please be reassured that the company remains committed to honour its obligation and is making every possible effort to release the remaining amount at the earliest. We remain grateful for your continued support and understanding and look forward to sharing further developments in this regard soon,” Jet’s chief people officer Rahul Taneja told employees in a mail on Friday.

Jet’s employee remuneration cost was Rs 2,995 crore in the fiscal 2017-18. The airline is trying to raise funds and is learnt to be in talks with major groups like Tata Group and US carrier Delta for stake sale.

Tata Sons, TCS violated rules in sacking Cyrus Mistry: RTI reply

MUMBAI: The abrupt sacking of Cyrus Mistry as the chairman and director, respectively, of Tata Sons and its crown jewel TCS violated provisions of the Companies Act, RBI rules and more importantly, Tatas’ own articles of association, RoC, Mumbai said in an RTI reply.

The right to information (RTI) reply, given by Uday Khomane, the assistant registrar of companies (RoC), Mumbai on October 3, is in response to a RTI request filed by the investment arms of the Shapoorji Pallonji Group on August 31.

The reply said the way Mistry was removed from the chairmanship of Tats Sons and also as the director of Tata Consultancy Services (TCS), violated the relevant legal provisions under the Companies Act, 2013; the Reserve Bank rules governing NBFCs; and more importantly the rule 118 of the articles of association (AoA) of Tata Sons, the parent of the diversified Tata group, which is registered as an NBFC with the monetary authority.

A Tata Sons spokesperson refused to offer detailed comments on the questions sent by PTI, saying, “We do not wish to comment on the matter as the matter is sub-judice.”

PTI has seen a copy of the RTI reply which is based on the assessment of the documents furnished by the Tatas in the aftermath of the boardroom coup on October 24, 2016 dismissing Mistry as the group chairman.

The report offers an internal view of the RoC, which interestingly is totally opposite of the view taken by the National Company Law Tribunal (NCLT), Mumbai earlier this year while dismissing the petition filed by Mistry challenging his dismissal from the group.

In a boardroom coup, Mistry was sacked as the chairman of Tata Sons on October 24, 2016, two months short of four years in the corner room of the Bombay House, the global headquarters of the 150-old conglomerate that nets over 65 per cent of its income from outside the country.

Mistry, whose family is the single largest non-Tata shareholder with 18.4 per cent stake in Tata Sons, was nudged to take over the reins of the $103-billion group as the second non-Tata chairman, after Nowroji Saklatwala (1934-38), in December 2012, after group patriarch Ratan Tata retired.

Mistry was removed as TCS director with 93.11 per cent votes at the EGM held on December 13, 2016, as per its company secretaries Parikh & Associates which cited section 169(2) of the Companies Act 2013 read with section 115 and 100 (2)(a) for his removal.

But TCS did not send out the complete representation of Mistry to all shareholders, which violates section 169 (4)(b) of the Companies Act, noted the RoC reply.

The RTI reply is based on the queries posed by SP Kumar, western regional director, RoC, Mumbai which has found that Tata Sons violated rule 118 of its articles of its AoA, when it removed Mistry.

The report, exclusively available with PTI, states that “article 118 of the AoA of Tata Sons prescribes that its chairman can be removed in the same process as specified for his appointment i.e. by the selection committee consisting of four persons and based on such recommendation of the removal committee only the board is empowered to remove its chairman”.

It goes on to add that Tata Sons “being an NBFC duly registered with RBI, any management change requires prior approval of the RBI”, which was also not complied with.

The reply also cited several irregularities pertaining to the December 13, 2016 EGM convened by TCS to remove Mistry as a director from its board.

TCS had adopted a letter written by the company secretary and chief operating officer of Tata Sons on November 9, 2016 as a special resolution notice to sack Mistry.

The reply noted that this letter from Tata Sons was sent to TCS without any proof of a board resolution authorising the issuance of such a letter. The report also states that “it appears prima facie that there was no proper ‘special notice’ received” by TCS.

The RoC also said that the TCS’ company secretary thereafter “on his own” forwarded the purported special notice from Tata Sons dated November 9, 2016 to Mistry.

“The letter dated November 11, 2016 written by the VP & CS of TCS is against the provisions of section 169(3) of the Companies Act of 2013 as the power to send such a letter is vested with the board of the company,” noted the RoC report.

The RoC further noted that “since there was no TCS board meeting between November 9 and 11, 2016, and in the absence of any board resolution authorising the actions of the TCS’ company secretary, such a letter and the resulting actions would be void ab-initio”.

Additionally, TCS had also failed to send out the complete shareholder representation of Mistry to all shareholders, “in violation of section 169(4)(b) of the Companies Act”, and hence “the consequential resolution of EGM dated December 13, 2016 for the removal of Mistry would also be void”.

The RoC, Mumbai in a letter dated January 25, 2017 had written to the regional director of the corporate affairs ministry highlighting these concerns.

“As the verification of the relevant documents further finds that the company has violated the provisions of the Companies Act, and rules there under, I am referring the matter to the regional director to verify the findings in terms of rule 11(2) of the Companies (registration offices and fees) rules of 2014,” the letter read.

In the reply, SP Kumar, RoC Mumbai, in a letter dated February 17, 2017, stated, “RoC having come to the conclusion that transactions are void [Annexure C point (1) to (4)] has to express in unequivocal words whether the e-form is to be rejected or e-form or document as the case may be, as invalid in the electronic record in terms of rule 10(4) of Companies (Registration Offices and Fees) Rules, 2014.”

However, it is unclear what further action the ministry took on these observations, it noted.

Mistry and his elder brother Shapoor Mistry, through their investment companies, are the single largest non-Tata shareholder in Tata Sons with 18.4 per cent stake.

The group’s investment companies are currently waging a legal battle against Tata Sons in the National Company Law Appellate Tribunal alleging oppression of the minority shareholders and mismanagement at Tata Sons. The tribunal began hearing the case Wednesday in New Delhi.

Markets rebound as Sensex ends 551 points up

NEW DELHI: Markets surged on Wednesday with the benchmark BSE Sensex finishing over 550 points up after the government said that the autonomy of Reserve Bank of India (RBI) “is an essential and accepted governance requirement”. Sensex soared 551 points to end at 34,442, while the broader NSE Nifty closed 188 points up at 10,387. Both the BSE and NSE gained more than 1.5 per cent each.

On the BSE index, HDFC, IndusInd Bank, Infosys, Yes Bank, Sun Pharma and Axis Bank were among the major gainers with their stocks rising as much as 5.51 per cent. Except for Nifty Metal, all the sub-indices ended in green on the NSE platform, gaining as much as 4.07 per cent.

The finance ministry, in a statement, said, “Both the government and the central bank, in their functioning, have to be guided by public interest and the requirements of the Indian economy. For the purpose, extensive consultations on several issues take place between the government and the RBI from time to time. This is equally true of all other regulators.”

“The markets have come through with what would be referred to in technical parlance as a follow through day, in a classic fashion,” said Sunil Sharma, chief investment officer, Sanctum Wealth Management.

“Fundamentally, the market shrugged off worries about tensions between the Reserve Bank of India (RBI) and government that led to a selloff in the morning,” he pointed out.

Investor sentiment had turned weak in early session on reports that the government may invoke certain provisions to issue directions to the Reserve Bank.

Sensex had turned choppy after opening higher, and was trading 164 points, or 0.48 per cent, lower at 33,727. The NSE Nifty had also saw a similar movement, trading 63 points, or 0.61 per cent, down at 10,134.
(With inputs from agencies)

Hot jobs: Public vs. private sector — which pays more?

Whether you’re figuring out your first career path or looking to change directions, a new series from Global News, Hot Jobs, focuses on career strategy for a new era in work.

When Alicia Vandeweghe graduated from Ryerson University with a master’s degree in communication and culture in 2008, the deep recession discouraged her from continuing on in school.

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Her student loans were an inescapable financial weight and she couldn’t stomach the thought of taking on even more loans to go to teacher’s college when job prospects seemed so poor.

READ MORE: Hot jobs: These are the best-paying jobs you can get without a university degree

“There was an urgency for me to start working,” Vandeweghe says. She gave herself a six-month deadline to find a job and, almost immediately, zeroed in on public sector employment.

A decade later, Vandeweghe ticks off her reasons: decent pay, job security, good benefits and a pension. She also thought she would be more likely to find meaning in public sector work, a feeling she was helping people.

“I wanted the room for growth. I didn’t want to be changing employers every year or two. I wanted that stability. I also wanted to really enjoy what I did.”

She started at Ryerson University on a four-month contract that extended into permanent work. She’s been there a decade, and she isn’t planning to leave. She’s found it fulfilling to help students navigate grad school and found opportunities to be creative, helping out with photography, writing, and helping manage a graphics team.

“I’ll likely retire from here.”

WATCH: How to solve brainteasers when applying for a tech job

Many people aren’t quite so secure in their jobs. It’s estimated that one in five Canadians work precarious jobs, meaning they work part-time or on contracts with little stability. For those people who are angling for more money and a stable job  — where should they look?

For Vandeweghe, clocking out daily at 5 p.m. to get home to her two children is a huge perk. But public sector jobs aren’t always the obvious choice for other people looking for similarly good jobs. You can look at statistics and stereotypes, compare wages, but at the end of the day, Hassan Yussuff, president of the Canadian Labour Congress, says it’s going to depend on what a good job means to you.

Hassan Yussuff, Canadian Labour Congress president, at Third Floor York in Ottawa March 7, 2016. Photo by Blair Gable

Blair Gable/Handout

Is it just about the zeros on your paycheque? Do you want more paid sick days? What about a pension? Do you care if the computer you’re clacking away on is running software five years outdated? Or if the layers of bureaucracy mean your projects stall for months awaiting approval?

“Most people say a good job is a good salary,” Yussuff says, but, he notes, there is a “broader acceptance” now that people get sick and grow old, so they’re looking for the added security of a benefits package and a pension to retire on — not just a dollar figure.

READ MORE: Minorities earn more working in public sector: report

Still, if boosting the figure on your paycheque is the primary goal, an analysis from the Fraser Institute makes it clear: pick public sector work.

It doesn’t mean you have to work directly for the government. While nearly two-thirds of Canadians work in the private sector, roughly 20 per cent work in the public realm, meaning they’re employed by governments of all levels as well as government agencies, crown corporations, and government-funded institutions like hospitals, schools and universities.

WATCH: ‘Odd Jobs’: From tasting chocolate to rebuilding dinosaurs — a look at some of Canada’s most unique jobs

They make an average of 10.6 per cent more than their private counterparts, per the 2016 Fraser Institute report, which analyzes 2015 data from Statistics Canada’s monthly labour force survey and includes both unionized and non-unionized jobs. That premium dropped to 7.2 per cent when the Fraser Institute only compared unionized employees.

“The gap is pretty consistent and it’s reasonably high,” says Steve Lafleur, a senior policy analyst with the Institute.

WATCH: Here’s what it take to earn a middle-class income in several cities across Canada

How much more you’re estimated to make varies depending on your job. Contractors and supervisors working in trades and transportation experienced the smallest pay bump working in the public sector (3.7 per cent), while those employed in protective services jobs earned the most (39.5 per cent). Teachers and professors fell in the middle, earning an estimated 15.5 per cent more than their private peers.

Angella MacEwen, senior economist at the Canadian Union of Public Employees, urged people not to get too caught up in the 10.6 per cent average wage differential. Some low-paying private jobs, she says, just don’t have a public counterpart. The salary earned by food service workers or retail workers or other similar jobs “kind of pulls down the [private sector] average.”

Salary aside, there are still plenty of other factors to weigh. Indeed, many of the benefits that drew Vandeweghe to working at a university go well beyond her paycheque. Per the Fraser Institute’s numbers, public sector workers enjoy many other non-wage benefits:

  • They’re more likely to have a pension: 89.3 per cent vs. 23.8 per cent in private sector.
  • For those who have a pension, it’s more likely to be a defined benefit pension: 93.7 per cent vs. 45 per cent in the private sector.
  • They’re less likely to lose their job: a 0.5 per cent likelihood compared with 3.7 per cent in the private sector.
  • They’re also likely to retire 2.3 years earlier than their private counterparts.

Those benefits tend to be the work of unions, MacEwen says.

“It’s hard to tease out, but we do know that when the public sector contracts out to non-union shops they don’t have the same kind of benefits or pay.”

READ MORE: Engineer? Teacher? Sorry, that doesn’t guarantee job security anymore

In general, Lafleur says, there should be some sort of trade-off between public and private work. In other words, you should be accepting slightly lower pay but more benefits and stability in the public realm while the reverse is true in the private sector.

“But there really isn’t one,” he says. “Across the board, public sector employees seem to be doing better than their private sector cohorts.”

Public sector employees tend to do better than their private sector counterparts, says Steve Lafleur, a senior policy analyst with the Fraser Institute.

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Whether that keeps up, remains to be seen. Governments set public sector wage levels and don’t seem to be doing much to “control the costs” like the private sector does, Lafleur says. Finding ways to be sustainable long-term might force them to lower public wages, he says, given how indebted some provinces are.

“We have some real serious challenges and at some point they have to be reckoned with. We can’t simply decide to not pay our bills forever.”

Helping people in both public and private sectors advance their careers is Meghan Reid’s job. Reid is a registered psychologist and the owner of Canada Career Counselling. She advises people trying to figure out what career they’re ideally suited for. Part of that, she says, is helping some people figure out whether they want to be publicly or privately employed and helping others who are trying to make the shift from one to the other.

WATCH: The best-paying jobs you can get without a university degree

While the 2016 Fraser Institute report indicates the average public employee makes nearly 11 per cent more than those in the private sector, Reid says for some jobs the private sector tends to pay up to a quarter more. Whether someone wants those jobs usually depends on their personality and preferred lifestyle. The public sector tends to reel in those looking for stability, she says, while the private sector tends to attract the risk takers.

“If people really want to make a big impact, have influence, get things done… they’ll often want to move into the private sector,” Reid says. Private employers attract “high-achieving, type-A people,” while the public is more likely to attract “balanced, stable, more risk-averse people,” she said.

READ MORE: Report says Canada needs more billion-dollar companies to compete in the digital economy

Common complaints from those looking to leave the public sector often revolve around outdated technology and cumbersome bureaucracy, she says.

“Independence and autonomy and being able to get things done is a big push,” Reid says. “People who come from public are often like, ‘Oh my gosh, things are so slow moving, I need to get through 20 layers of approval before I can actually do anything so stuff doesn’t get done and it drives me nuts.’”

WATCH: Here are jobs that can be done remotely and pay more than $50,000 per year.

It’s important to recognize that what people want often changes as they get older, MacEwen says. In some cases, when people are able to, they’ll start in the private sector, where “it’s really demanding and hectic and hard to have a work-life balance,” and then transition to public when they’re ready to have a family.That balance is key for Vandeweghe.

Jobs with evenings and weekends? “That was a no-go,” she says. “Not being able to see my kids? No job is worth that to me.”

Still, Vandeweghe didn’t start with full-time work. Even in the public sector, she started on a contract that was extended before ultimately turning into a permanent role. That’s becoming more and more common, MacEwen says, in addition to increasing use of temp agencies in the public realm.

“So [some] people that are working in the federal public service, their employer is actually a temp agency and they’re there for six months and then they’re moved to a different spot.”

It’s becoming more and more common for the public sector to rely on contract work and the use of temp agencies, says Angella MacEwen, senior economist at the Canadian Union of Public Employees.

Handout

People seem to accept that in the private sector, MacEwen says, but public perception still seems to be that government work is more stable.

“This is something we’re trying to wrap our heads around globally: how to make jobs more secure and how to move past this kind of gig economy.”

It would help, Yussuff says, if governments got on board and stepped up employment standards regulations to address the reality of precarious work.

“Precarity is now the underpinning of this new economy,” he says. “Employers believe they don’t necessarily have to put people on their payroll, they don’t have to treat them the same.”