Unemployment in Canada
Unemployment is a big factor affecting the Canadian economy. Even though Canada is in its ninth consecutive year of economic recovery since the recession of the early 1990's, the unemployment problem in Canada remains at a crisis level. The current unemployment factor has created a drastic negative impact on the growth of the Canadian economy. Although Canada's official unemployment rate is only around 7%-8%, joblessness is actually much worse than the statistics suggest. Declining labour force participation is one of many causes for concern in terms of Canada's unemployment problem. Another major factor affecting this problem is lost potential output. Lost potential output is displayed in many different ways such as downsizing, and replacement of workers by machines. Both of these occurrences lead to more people being forced into the unemployment sector which in return puts their skills to waste. There are also negative social effects associated with unemployment, and although social problems, they influence the growth of the economy as well. Canada's job market has been so weak through the 1990s that hundreds of thousands of Canadians have simply given up looking for work altogether. This fact is displayed by a startli
"For young people in Canada, it is no exaggeration to say that the jobs crisis of the 1990s rivals that of the 1930s: 30% unemployment, dead-end jobs, falling incomes" (Papers from the 5th CAW Constitutional Convention, 1997). There are also many social factors that are affected by unemployment. Unemployment results in insecurity felt by people who are currently part of the work force. This is because they see how easy it is to become unemployed in today's society. People are afraid that they might be next to join the unemployed population. Many of these people have worked at the same job for their whole working career and don't necessarily have today's standard of education which makes it difficult to find a new job at the same level as the one lost. This causes many people to give up rather than looking for a new job. Without a steady form of income, people affected by this certain social factor are unable to contribute to the development and strength of Canada's economy. Also, people who are laid of from their job may be required to take a severe pay cut in order to obtain employment somewhere else in the economy. When this happens, the money regularly contributed to the economy by these people reduces tremendously because their new wages require them to reduce spending in order to survive. Lost output could very well be the most important negative effect that unemployment has on the economy. Every person who is willing to, but not currently working represents lost potential output of the economy as well as input into the economy. This potential that is not being produced causes the GDP to be lower than its potential, reducing the strength of the Canadian economy. Downsizing is a very prominent issue in today's economy and it has the ability to affect the majority of the work force. Every day we read about companies merging, enabling them to reduce the number of people working within the two companies as well as downsizing to cut costs. When this happens these now unemployed workers become unable to contribute to the economy in two different ways. There skills are now at waste because they are not being used to strengthen the economy and they also become unable to put mone
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Approximate Word count = 1488
Approximate Pages = 6 (250 words per page double spaced)
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