http://www.vancouversun.com/business/Positive+national+numbers+expected+employment/2764170/story.html
Summary:
Last week, there were many positive studies found by Statistics Canada. It is finally apparent that the economy is recovering from the recession. It is shown that the GDP for Canada went up by 0.6%, which is more than the past three years. Furthermore, it was also a surprise that the increase in the GDP was mainly because of the manufacturing industry. In the past, the manufacturing industry weren't capable of producing satisfying numbers to contribute to the GDP. Another positive note was that the employment rate went up, while the unemployment rate went down. In the month of March, there were more than 25,000 Canadians who found a job and joined the work force. Economist, Krishen Rangasamy stated that March went by fairly smoothly; however, Rangasamy also stated that the unemployment rate will slowly rise again in the near future.
Connection:
This article ties in with many concepts discussed in this chapter. The 0.6% growth in the gross domestic product(GDP) may seem like a small number, but in reality it has a big impact on Canada. With an increase in GDP, it means that there is an increase in productivity, an increase in worker's income, more people willing to spend money. These factors all contribute in booming the economy. When the business activity is low, prices are likely to decrease. However, this is not the case. Business activity is currently high, and prices may rise due to the increased demand for goods and services. It is also mentioned in this article that the employment rate went up. This is a positive thing because more people are working to stimulate the economy.
Reflection:
Unemployment is a very big concern for most Canadians. There were many Canadians who were struggling with finding a job and had no source of income. With this recent report, there are now more people that are employed and they can support their families. I believe that Canadians are doing a great job of stimulating the economy and we should continue to do so. I know of a person who was "sent on break" during the past few months because the company he was working for wasn't doing so well. He finally got to work in his usual hours again because just like the economy, the company was doing well again.
Subscribe to:
Post Comments (Atom)
Unemployment is a touchy subject. Finding jobs is a very difficult thing to do in a recession state of the economy. I do believe with you, Calvin, about Canadians stimulating the economy to a more stable point but I feel that the majority of the work is being done by the Bank of Canada rather than the individuals of Canada. I’m not sure of what company was sending employees are a leave of absence, but that increasingly shows the unstable situation of the economy quite well. Also, I’m not sure if companies are allowed to send employees on a leave of absence, they probably just let them go all together.
ReplyDeleteWith an increase in GDP, it means that the economy is rising and probably inflation will happen. Less unemployment will also result as an increase in GDP. Since many Canadians were struggling to find a job, it should be easier with the economy slowly going back up. With more jobs being found, families can relax a bit because there will be fewer people being laid off. Also, people can begin to spend money more freely since the recession.
ReplyDeleteThis comment has been removed by the author.
ReplyDeleteThis comment has been removed by the author.
ReplyDeleteI agree that with an increase of 0.6% on the gross domestic product, it is a large change in the productivity in Canada. With the economy doing well, workers’ incomes are likely going to increase as well. An increase in income is a factor that increases demand for a product. When the demand is high, it indicates that people are spending. With high demands for a product due to consumer spending, it results in an increase in the price of the product. This is called demand-pull inflation. The reason that the economy is doing so well right now is because people are spending and more money is circulating in the market. The increase in demand for products creates jobs and unemployment rates decreases while employment rates increases.
ReplyDeleteThis comment has been removed by the author.
ReplyDeleteThis comment has been removed by the author.
ReplyDeleteUnderground economy affects GDP, unemployment and productivity. It would make the unemployment rate lower if it came to the surface with the rest of the economy. The underground economy also known as the black market deals in things to avoid taxes. It is simply commerce to avoid taxes for various reasons such as the products are illegal, banned or otherwise not in the tax base. There is much commerce for example selling pot. Growing, imports and distribution and has no taxes on it. A lot of people are "employed" but not reflected in any stats anywhere.
ReplyDelete