Article: http://www.digitaljournal.com/article/266703
Summary
The article I have chosen briefly shed some light to the rate of unemployment in Canada from this past January. About 129,000 mainly full time jobs were lost, which brought the unemployment rate from 6.6% in December to 7.2%. The manufacturing sector in Canada had suffered the greatest loss in employment, losing approximately 101,000 jobs. However, industries in health care and social assistance had seen their employment increase by 31,000 despite of the downfall in jobs experienced by other industries. In the three largest provinces in Canada, the effects of unemployment were seen. Ontario had lost 71,000 of the 129,000 jobs, British Columbia had lost 35,000, and Quebec had lost 26,000. Those that were mainly affected were youth from ages 15-24 and men from ages 25-54.
Connections
The connection from chapter 5 to this article would be unemployment and its variants. While Canada’s economy is heading into recession, many residents are discouraged to spend money and would rather save the money in banks and in investments. This lack of demand for product results in demand-deficient unemployment for workers in different industries. Looking at the job loss in the manufacturing sector, the demand for the goods and services provided must be decreasing. The current unemployment rate in Canada is also in the estimated range of the natural rate of unemployment of 6 and 9.
Reflection
Looking at the economic status of our major trading partner, the United States, it seems that the problem of unemployment in Canada will continue to rise unless the US economy starts picking up. Although newly-sworn president Barack Obama and his advisors have came up with an economic plan to put a halt to the current recession, from the last article I have made it seems that certain parts of it may not be as effective as it seems. Unless the Canadian government does something to help with the situation, the rate of unemployment will continue to increase for the next few months. As a student coming out of high school in the next few months, these job losses will hinder my ability to find a part time job as many of those unemployed will have to temporarily take part in any jobs available to keep up their income.
