Canadian economy: Don’t expect full employment for another four years

mentalfloss

Prickly Curmudgeon Smiter
Jun 28, 2010
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Canadian economy: Don’t expect full employment for another four years

Canada’s labour market isn’t expected to return to full employment for another four years, the Conference Board of Canada says.

After that, labour markets will be tight, curtailing long-term economic growth, the board said in its annual long-term forecast Wednesday.

Full employment is reached when Canada’s unemployment rate falls to 6 per cent, according to the Ottawa-based think tank’s definition.

The unemployment rate was 7.2 per cent in March, according to Statistics Canada.

Canada’s economy was near full employment before the recession of 2008-09. And Canada has recovered all the jobs it lost during the downturn.

But it will take another four years for unemployment to fall to 6 per cent as both households and governments rein in spending, leading to slower overall economic growth, the board said.

“Canada’s economy has rebounded nicely from the 2008-09 recession, especially when compared with the performance of many other advanced economies,” said national director Pedro Antunes. “But closing the remaining gap on potential output and full employment will be a long and protracted process as real GDP growth will be lacklustre over the next few years.”

The recession has also affected the labour market directly, delaying Baby boomers’ retirement plans by a year or two while they recoup their nest eggs, the report says. A greater portion of older women are working and immigration is robust, the report also noted.

After 2014, the labour market is expected to tighten up as a wave of retirements accelerates, putting pressure on employers to increase wages, the board said.

Starting in 2016, economic growth is expected to slow to an average of 2.1 per cent a year as an aging population spends less, the board said.

Economic growth rates from 2012 to 2016 are expected to average 2.7 per cent, the board said, with growth up 2.3 per cent this year and 2.8 per cent in 2013.

Canadian economy: Don't expect full employment for another four years
 

Liberalman

Senate Member
Mar 18, 2007
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Was Alberta and Saskatchewan included in the report?

Boom, Bust & Echo

If one were to look at the demographics, abortions and the women working longer to have children due to their quest to break the glass ceiling is the cause of this.

I am not saying this in a negative way. It is all about cause and effect, eventially the trend will go back to normal