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mindmetoo
Joined: 02 Feb 2004
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 Posted: Sun Oct 07, 2007 9:33 pm Post subject: Canadian unemployment rate vs US unemployment rate |
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http://news.yahoo.com/s/afp/20071005/wl_canada_afp/canadajobs_071005130429
The Canadian UI rate dips to the lowest level in 33 years. 5.9%. Oddly, in America, a UI rate in the 6% range would be cause for great distress. I can never figure out why the Canadian rate is always so high compared to the USA, even in good times. The Newfies takin' us down? |
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Pluto
Joined: 19 Dec 2006
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| Posted: Sun Oct 07, 2007 10:17 pm Post subject: |
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| 3rd qtr US jobs and earnings data/reports coming later this week. Mot sure what is says but, aside from the financing sector, things look pretty optimistic. Oddly enough, even US Auto manufacturers are pretty upbeat. |
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riverboy
Joined: 03 Jun 2003
Location: Incheon
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| Posted: Sun Oct 07, 2007 11:06 pm Post subject: |
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| I can think of two reasons. One is our economy is natural resource based to a much larger degree than the U.S. seasonal workers always face unemployment. And, having a social security net allows for people to "relax" and enjoy the finer things in life. Also, because of Employment Insurance, many people register for pogey and work "Under the table" this means that the Unemployment rates are not as high as they are reported. AJust a good healthy black market work force going on in the East! |
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endo
Joined: 14 Mar 2004
Location: Seoul...my home
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| Posted: Sun Oct 07, 2007 11:31 pm Post subject: |
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Perhaps because socialist policies are a lot stronger in Canada that you see a greater unemplyment rate?
Also even during full employment, you will always have about 4% of the population who (a) is simply unwilling to work, or (b) doing other kinds of work in the side and isn't necessarily employed.
Therefore the tru unemployment rate in Canada from what I know is really only 2%. Which is not bad at all. |
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Adventurer
Joined: 28 Jan 2006
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| Posted: Mon Oct 08, 2007 4:26 pm Post subject: Re: Canadian unemployment rate vs US unemployment rate |
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| mindmetoo wrote: |
http://news.yahoo.com/s/afp/20071005/wl_canada_afp/canadajobs_071005130429
The Canadian UI rate dips to the lowest level in 33 years. 5.9%. Oddly, in America, a UI rate in the 6% range would be cause for great distress. I can never figure out why the Canadian rate is always so high compared to the USA, even in good times. The Newfies takin' us down? |
First of all, that is great news. Canada's Central Bank is more conservative than the American Federal Reserve. In certain areas the Canadian Government is more conservative when it comes to money and the economy.
The Canadian Government believes in higher taxes to ensure the government has enough money to have a surplus, but would reduce it somewhat for the business sector. It has done so recently, but only when it had a surplus. I think that is conservative. The economic views of the bank are quite conservative. They don't mind more unemployment in exchange for lower inflation. Some worry that if unemployment goes down too low then there will be inflation.
It is about an economic philosophy not necessarily what the Canada populace is asking for, and, yes, also Canada is a resource based economy. However, with such high growth unemployment had to come down. The momentum was just too strong. And as people said, the social net, makes it more palatable to have a slightly higher unemployment rate than what exists say in the U.S. I would just say Canada in some ways is more fiscally conservative despite some of the left-leaning policies. |
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