Canada’s unemployment rate may not be a good indicator of job creation in Canada since the recession of 2007-09 according to a new study from Canada’s central bank, the Bank of Canada.
“Although the unemployment rate in Canada has evolved largely in line with overall labour market conditions since the recession, the article has shown that it may have modestly overstated the extent of recent improvement,” concludes the study titled Beyond the Unemployment Rate: Assessing Canadian and U.S. Labour Markets Since the Great Recession by Konrad Zmitrowicz and Mikael Khan.
The authors also voiced their concern over long-term unemployment: “A worrying feature of the Great Recession and its aftermath has been the large rise in long-term unemployment in both Canada and the United States…In Canada, that percentage roughly doubled, peaking at just over 20 per cent in June 2011, and has not shown much improvement since.”
The study conclusion suggests the situation in the United States is even worse.
More information:
Beyond the Unemployment Rate: Assessing Canadian and U.S. Labour Markets Since the Great Recession (pdf) – here
CBC News – Jobs recovery overstated, Bank of Canada study finds – here
CTV News – Canada’s post-slump jobs record not as impressive as believed, says BoC – here
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