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Author Topic: Unemployment Rate Lowest in 30 Years
DrConway
rabble-rouser
Babbler # 490

posted 13 July 2005 02:03 PM      Profile for DrConway     Send New Private Message      Edit/Delete Post  Reply With Quote 
It's 6.7% now (StatsCan Report)

I was thinking about this this morning and the one thing I noticed was that these low unemployment rates by 1980s and 1990s standards have come in the midst of higher inflation rates since the mid-1990s. I suspect that the current slightly inflationary environment is driving higher consumer demand (buy now, don't buy later, it'll cost more!) and thereby driving business hiring.

In short, it's just the old-fashioned Keynesian prescription at work once more.


From: You shall not side with the great against the powerless. | Registered: May 2001  |  IP: Logged
Aristotleded24
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Babbler # 9327

posted 13 July 2005 02:42 PM      Profile for Aristotleded24   Author's Homepage     Send New Private Message      Edit/Delete Post  Reply With Quote 
In one of my courses at university, the prof said that economists determined an unemployment rate that was "natural," meaning that no matter how good things are, there will always be some people unable to find work. If the economy hits this "natural" low, then it's doing really well. I'm not sure where it was, (probably well below 5%) but I remember the prof saying that in recent years it has been adjusted upwards, so when economists celebrate how good the economy is based on that "natural" number, it's not becaus the economy is good, but because the benchmark has been moved and that earlier that figure would have been a problem.
From: Winnipeg | Registered: May 2005  |  IP: Logged
Fidel
rabble-rouser
Babbler # 5594

posted 13 July 2005 03:04 PM      Profile for Fidel     Send New Private Message      Edit/Delete Post  Reply With Quote 
I don't mean to sidetrack the main issue here, that the economy seems to be doing better now than during the Mulroney years, as well as the transition years from Mulroney's legacy, but Mel Hurtig says that the labour participation rate dropped from 67.2 percent when FTA came into effect down to 65.5 in the 1990's. Hurtig admits that 1.7 percent doesn't seem like a big number, but it represents the loss of some 272 000 jobs in the year 2000 alone. He also points to the deterioration in the quality of jobs through the 1990's. We're seeing more part-time jobs and fewer full time payroll jobs created.

Altogether, part-time, "self-employed" and temporary jobs included, the private sector in Canada produced a pathetic average annual increase of only 88, 300 new jobs during the 1990's, compared to an average of 153 200 in the 1980's.

A quote from Mel's book:

quote:
There is no question that Canada's poor employment performance has been the major event of the 1990's

So what is the average annual increase in Canadian jobs now in 2005 ?.

[ 13 July 2005: Message edited by: Fidel ]


From: Viva La Revolución | Registered: Apr 2004  |  IP: Logged
radiorahim
rabble-rouser
Babbler # 2777

posted 13 July 2005 09:36 PM      Profile for radiorahim     Send New Private Message      Edit/Delete Post  Reply With Quote 
Back in the 1960's it seems that the economic "gurus" looked at 3% as the so-called "natural" unemployment rate...then it got bumped to 5% and then later on in the 90's I seem to recall the gurus pronouncing 7% as "natural".

Then if the jobless numbers drop the central bankers start hiking interest rates in order to throw folks out of work. Gotta keep the workers in line...they might do something awful like ask for a wage increase.

Wage increases will destroy western civilization as we know it. Workers should know their place...only CEO's and their partners in crime are allowed to have their earnings go up.


From: a Micro$oft-free computer | Registered: Jun 2002  |  IP: Logged
Fidel
rabble-rouser
Babbler # 5594

posted 14 July 2005 12:55 PM      Profile for Fidel     Send New Private Message      Edit/Delete Post  Reply With Quote 
Now you're scaring hell out of me, Radio.
From: Viva La Revolución | Registered: Apr 2004  |  IP: Logged

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