Unemployment Rate Increases

This article is about Canada’s unemployment rate going up, mainly because of Eastern Canada. Even though Western Canada, mainly Alberta has had unemployment go down, Eastern Canada has had unemployment go up. The article states that a reason for the unemployment rate going up is more people entered the job market. But the unemployment rate going up isn't going to cause a huge different in the big picture according to economists. Just a few months earlier, 100,000 jobs were created and that lead people to worry borrowing rates were going to increase because the Bank of Canada wanted to make sure inflation doesn't go up. But because the unemployment rate went back up, it is a possibility that interest rates will go down even more. The reasons for this increase in unemployment are the Alberta boom slowed down but the main reason is many manufacturing jobs are disappearing. One main cause of manufacturing jobs disappearing is the Canadian dollar because companies don't want to pay the cost of the high Canadian dollar. Also, wages went up slightly but it won’t have a big affect on the economy.

Their in frictional unemployment in Canada because a lot more people entered the job market. The cause of this might have to do with seasonal employment because many youths only work in the summer and more construction, tourism, recreation and agriculture jobs are available during the summer months. Inflation has also affected the manufacturing sector because inflation partly causes the Canadian dollar to go up. Because of the Canadian dollar going up, companies are reluctant to do business in Canada because of the high Canadian dollar. The main cause for concern about inflation going up were the 100,000 jobs that were created. These 100,000 new jobs would causes wages to go up, which is a key factor in cost-push inflation. Their have been concerns that the bank of Canada would increase the borrowing costs, so they could control the inflation rate but this never happened.

In my opinion, inflation rates will not raise significantly in the next decade. I think wages will not go up significantly because the Canadian dollar is still high but I expect the dollar to lower in the next few years, which may allow wages to slightly increase. I also expect the unemployment rate to stay about the same if not slightly lower in the next decade. Once the Canadian dollar goes back down, jobs in the manufacturing sector should pick up again and to counter balance that, I think Alberta's oil boom will slow down or become stagnant very soon. I think the next decade will have little change in regards to inflation and unemployment rates.

http://www.cbc.ca/cp/business/060804/b080428.html

Increase in Unemployment Rate

This article is about Canada’s unemployment rate going up, mainly because of Eastern Canada. Even though Western Canada, mainly Alberta has had unemployment go down, Eastern Canada has had unemployment go up. The article states that a reason for the unemployment rate going up is more people entered the job market. But the unemployment rate going up isn't going to cause a huge different in the big picture according to economists. Just a few months earlier, 100,000 jobs were created and that lead people to worry borrowing rates were going to increase because the Bank of Canada wanted to make sure inflation doesn't go up. But because the unemployment rate went back up, it is a possibility that interest rates will go down even more. The reasons for this increase in unemployment are the Alberta boom slowed down but the main reason is many manufacturing jobs are disappearing. One main cause of manufacturing jobs disappearing is the Canadian dollar because companies don't want to pay the cost of the high Canadian dollar. Also, wages went up slightly but it won’t have a big affect on the economy.

Their in frictional unemployment in Canada because a lot more people entered the job market. The cause of this might have to do with seasonal employment because many youths only work in the summer and more construction, tourism, recreation and agriculture jobs are available during the summer months. Inflation has also affected the manufacturing sector because inflation partly causes the Canadian dollar to go up. Because of the Canadian dollar going up, companies are reluctant to do business in Canada because of the high Canadian dollar. The main cause for concern about inflation going up were the 100,000 jobs that were created. These 100,000 new jobs would causes wages to go up, which is a key factor in cost-push inflation. Their have been concerns that the bank of Canada would increase the borrowing costs, so they could control the inflation rate but this never happened.

In my opinion, inflation rates will not raise significantly in the next decade. I think wages will not go up significantly because the Canadian dollar is still high but I expect the dollar to lower in the next few years, which may allow wages to slightly increase. I also expect the unemployment rate to stay about the same if not slightly lower in the next decade. Once the Canadian dollar goes back down, jobs in the manufacturing sector should pick up again and to counter balance that, I think Alberta's oil boom will slow down or become stagnant very soon. I think the next decade will have little change in regards to inflation and unemployment rates.

http://www.cbc.ca/cp/business/060804/b080428.html