Canada still faces unemployment crisis

The recovery of Canada’s economy takes on the “two-economy” aspect of the pre-recession years. The resource-rich regions are now flourishing while Central Canada struggles.

The Bank of Nova Scotia shows the three provinces that are rich in oil, gas and other resources. These three provinces include Alberta, Saskatchewan, Newfoundland and Labrador which they predict will lead Canada in economic growth next year.

Recently the Bank of Canada forecast that there is a growth of 2.4% in 2011 but Governor Mark Carney warned that the Canada won’t fully benefit due to poor production. According to Toronto-Dominion economist Diana Petramala the swing in the services sector might be short –lived  due to the the consumers spending curb which leaves them in debt plus the tougher mortgage rules that damps demands in housing.

Unemployment rate

As of 2010, one of the problems Canada is facing is the unemployment rate that is stuck between 9%-9.5% and is expected not to be budging in a long time. Jobs are predicted to slip to about 8.5% as there is a job shift from manufacturing to lower-wage service jobs, which are being brought about by the growing mismatch of skills as well as problems with skills atrophy and a long duration of unemployment in the country.

In a statistics made, there are about 431,000 jobs added in May last year, but of the number, 20,000 are census jobs. And in a BLS site, it is stated that the unemployment rate in Canada dropped from 9.9% to 9.7%, and the underemployment rate dropped out to about 16.6% due to the fact that the number of unemployment fell because there are about 322,000 people who dropped out of the labor force in the country. It is a very ugly scenario indeed.

There are still about 1.5 million people that are unemployed and the prospect of employment are not doing so good especially for the younger workers as well as those who are on the public sector, as sited by the president of the Canadian Labor Congress.

On the other hand, the Canadian unemployment statistic is at 7.6% and not in the 9% as reported above. This was last reported in December 2010 and it’s is averaging about 8.53% that took a record high of 13.10% in 1982 and reached a record low of 5.90% in 2007.

Canada still outshines USA in job creation

However, due to a surprise surge in the manufacturing job in Canada, the Canadians again outperformed the USA based on the creation of jobs as the country was able to create more jobs than expected in December last year. Although the high-paying full time jobs still have not recovered, the country was able to recoup all the jobs lost during the recession.