Canada gets jobs with its economic recovery. No fair
With the number of people going to collect unemployment checks on the rise—despite other good economic news—one starts to wonder, Could this be our third "jobless recovery" in a row?
Well, not in Canada. As this recent report (PDF) from CIBC World Markets points out, our northern neighbor isn't having nearly the unemployment issues that we are here in the States. At 8.6%, the unemployment rate is Canada higher than it's been in a decade, and not terribly below the U.S.'s 9.4%. But—in a big point of difference—people who lose their jobs in Canada are able to find new ones much more quickly.
Long-term unemployment has become a real problem in the U.S. The average unemployed person now spends 25 weeks out of work—a full seven weeks longer than before the recession started. In Canada, by contrast, the average length of unemployment is 15 weeks, just a smidgen above the pre-recession average of 14 weeks.
What gives? According to Benjamin Tal, a senior economist at CIBC, the discrepancy is a sign that Canada's recession overall has been less severe. Households took on less debt, corporations held on to more cash—Canadians are just kind of better than us (my words, not his).
Or maybe it's not that simple. Some provinces are seeing people stay unemployed longer. Ontario and Quebec are prime examples. Alberta and British Columbia, meanwhile, speak to the broader trend of getting back to work quickly.
In that juxtaposition you can start to see what's going on. The part of the country most economically tied to the U.S. is seeing a worse jobs situation than the part of the country more tied to China (by way of the commodities trade).
The Great Recession is largely—let's face it—an American-made export. Yet in recent years, the Canadian economy has been "divorcing itself a little bit from the U.S." (those are Tal's words). And that seems like a good thing right about now.
Barbara!
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Hello, allow me to introduce you to the Elephant in the Room. You know, the one you somehow failed to mention in the 300+ words above: Canadian labor costs do not include health care, making their employees (roughly equivalent in education and physical skills to US workers, although healthier due to their better health care system) MUCH more competitive in a global economy. Look at factory utilization in the auto industry, Canada v. US, in the last 30 years. The auto companies push employment to Canada, as much as possible, because at the same hourly pay, Canadian workers cost more than 20% less per hour.
Canadians created a single payer health care system decades ago. This has now become a huge competitive advantage for them. We should do likewise.
Any pro-business organization should support health care reform, including a strong government health insurance plan. It's simple, good business.
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Where's Justin? That little B. makes me giggle.
Nice to see SOMEONE gets a vacation.
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Gasp. I am shocked! You would put economic competitiveness and feeding our children ahead of the right of an Anesthesiologist to make as much money as he wants without--and I quote -- getting to the 70% bracket?
WHAT 70% bracket?
What about the death panels? Gee whiz.
If public discussion in this country were any dumber we would be characters from Little Abner.
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If the public discussion got any dumber we would be characters from Little Abner. - tc125231
Hilarious!!! Yeah, I almost forgot why so many countries went to single-payer in the first place....it adds to competitive advantage and it keeps people healthier!
So not only do we pay more collectively for our health coverage...we are no healthier as a nation for it. How stupid can this country get??? -
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[...] it looks like Canada, our quiet, sensible neighbor to the north, has yet another indicator they are reaping what they [...]
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Canada is a country whose source of sustenance is primarily commodities export; it is the richest nation in terms of oil, timber, water, and base minerals. In hi-tech, however, it's like an ordinary nation with a few big players like Bombardier and Rimm. There is no equivalent to a Silicon Valley, MIT-Kendall Sq, or Research Triangle Park in NC.
Now, with the above in mind, Canada has a lot of luxury where as the economy globalizes, economies along the Pacific Rim: China, Korea, Vietnam, etc will be purchasing Canadian commodities for their growing economies. This provides the govt revenue and they can provide the 30 mill population with health care and social services including welfare esp in Quebec and the northern provs.
In contrast, the USA has 330 million persons, a 'debt instrument' economy, and no way to manage a program this complex when the US's main export is T-bills, and not commodities or even manufactured goods. The cause & effect of this was around for ages; it's only now that it's making its way into the mainstream.
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I don't know if it's so much health care that has been helping employment in Canada so much as it has been avoiding the worst of the problems with housing and the banks. Historically, the unemployment rate in Canada has been higher than the US. I don't recall Canada ever having lower unemployment until now.
Subprime mortgages were only a tiny fraction of the overall market up here. Prices have declined some, but not enough to be a big problem. It's funny to see the big Canadian banks be so smug about being solid... it wasn't too long ago they were fighting the regulations that prevented them from taking part in the worst of the excesses.
Provinces like Ontario and Quebec continue to slump due to their reliance on manufacturing. BC, Alberta and Saskatchewan are in better shape due to energy and other commodities. It should be noted that the eastern provinces' slumping manufacturing and the western provinces' booming commodities pre-date the Great Recession.
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