UNEMPLOYMENT RATE IN CANADA.

Running head: UNEMPLOYMENT RATE IN CANADA
1
Unemployment Rate in Canada
Student’s name
Professor
Course
Date

UNEMPLOYMENT RATE IN CANADA
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The article “Canada adds 67K new jobs in January, but unemployment rate rises to 5.8%” by
Blatchford on February 8th, 2019 portrays the current unemployment status in Canada. In the
month of January 2019, the economy of Canada added approximately 66,800 new jobs. Despite
the addition of new jobs, the unemployment rate rose from 5.6% in December 2018 to 5.8% in
January 2019 (Blatchford, 2019). The monthly unemployment rates in Canada for the past
twelve months are summarized in the graph below.
Feb-18
Mar-18
Apr-18
May-18
Jun-18
Jul-18
Aug-18
Sep-18
Oct-18
Nov-18
Dec-18
Jan-19
Feb-19
5.3
5.4
5.5
5.6
5.7
5.8
5.9
6
6.1
Unemployment Rate in Canada
Unemployment Rate in Canada
%
Source: Statistics Canada, 2019.
The addition of new jobs in the month of January 2019 is significantly attributed to the
private sector. The private sector, particularly the service industry in wholesale and retail trade
contributed substantially to the creation of new jobs. However, the creation of new jobs in the
month of January was not significant enough to prevent the unemployment rate from rising.
There are a number of factors that caused the rate of unemployment to rise. Foremost, the rise in

UNEMPLOYMENT RATE IN CANADA
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the unemployment rate was partly instigated by an increase in job seekers in the month of
January. Normally, an increase in the number of job searchers causes a rise in the number of
people regarded as unemployed. Furthermore, the decline in jobs from product generating
industries and a considerable decline in the price of oil in Alberta contributed to the surge in the
unemployment rate.
This article by Blatchford avails information that is crucial to students in comprehending
their theoretical concepts. Foremost, the increase in the number of people searching for jobs in
the month January brings out the concept of discouraged workers and frictional unemployment.
Discouraged workers refer to individuals who have not searched for work during the past four
weeks since they believe that there is no employment available for them. When discouraged
workers reenter the workforce, the unemployment rate will rise. The rise in the number of people
looking for jobs can also be attached to frictional unemployment where university graduates and
school leavers come into the labor market.

UNEMPLOYMENT RATE IN CANADA
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References
Blanchard, O., & Johnson, D. R. (2013). MACROECONOMICS. Boston : Pearson.
Blatchford, A. (2019, February 8th). Canada adds 67K new jobs in January, but unemployment
rate rises to 5.8%. Retrieved March 27th, 2019, from Global News:
https://globalnews.ca/news/4938714/canada-jobs-january-2019/
Statistics Canada. (2019, March 8th). Chart 2: Unemployment rate. Retrieved March 27th, 2019,
from https://www150.statcan.gc.ca/n1/daily-quotidien/190308/cg-a002-eng.htm