OTTAWA—The parliamentary budget office says the Harper government’s $550 million small business job credit will only create 200 net new jobs next year and another 600 in 2016.
The latest report from the budget office says the credit will create a total of about 1,000 person years of work, at a cost of $555,000 for each person year.
The Canadian Federation of Independent Business, which welcomed the credit when it was announced last month, estimated it would create 25,000 person years of work.
The job credit effectively lowers EI premiums for small businesses.
The budget office report also says that EI premiums next year will be 13 cents above the break-even level.
In 2016, premiums will be 28 cents above the break-even level and then will start to go down, eliminating the surplus in the EI operating account.