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.
posted by Sk_25 @ 7:42 PM
5 Comments:
I am surprised to hear that the Canadian unemployment rate is going up, mainly because of
Eastern Canada. I thought employment rates were going up, but that is not the case. I agree with the fact that inflation rates will not raise significantly in the next decade and the Canadian dollar is set to go down in the future. I believe that by the wages slightly increasing this will help tax payers a little, but there will still be problems. I also, agree with the fact that there will be little change in regards to inflation and unemployment in the next decade. All in all, the unemployment rate is higher because more people are entering the work forest but this is could also be a good thing.
In my opinion, the problem of high unemployment rate in Canada is likely to go away within the next decade due to the fact that the baby boomers are all heading towards retirement. This would open up a lot of job opportunities for Canadians. Also I agree with your opinion about the wages not likely going to increase anytime soon due to the fact that Canadian dollar is high. Also due to the increased unemployment rate in Canada, the economy is going to slow therefore inflation rates are probably going stay around the same level.
It is very surprising to hear that unemployment rates are going up in Canada when recently we have been seeing alot more HELP WANTED signs in front of store and more companies are trying to find workers. It is not anyone elses' fault only the people who are unemployed. If they wanted to be employed they would be able to find jobs in Canada very fast, considering how many companies re in desperate need of employers right now. They would probably be accepted to the first job they apply to, looking at their resume and experience. If only the people were not as lazy, the unemployment rate would be way lower that what it is right now.
Employment rates go up or down. Its just a natural thing everywhere. It should be worrying if it only goes down, but Canada shouldn't have that kind of problem. It's not surprising that Eastern Canada isn't doing as well as the West. The West has way more resources to base their economies from. Also, I agree that there will be more job opportunities once the baby boomers retire, but will there be enough people to fill them? The high Canadian dollar is having a negative effect on manufacturing as industries are struggling to cope with higher costs. When the economy slows, the central bank is less inclined to introduce any new interest rate hikes and thus inflation shouldn't change drastically.
Great article Slava! I also agree that inflation rates will not raise greatly in the next decade for the reason that all our parents, or baby boomers, will be retiring, which therefore opens up more job opportunities. Additionally, it seems as though inflation rates and unemployment rates are always a play of numbers .. if they don't go up the next month .. they went up the previous month.. vice versa. Lastly, I am truly surprised that the Canadian unemployment rate is going up! Recently I heard that Alberta is in desperate need of workers and that fast food chains were willing to pay the big bucks for some labour. However, I guess the rest of the nation (Canada) is dragging down the unemployment rate. Let's hope for the best my good old friend slava!
Post a Comment
<< Home