Canada’s unemployment rate surprising remains steady despite huge influx of new jobs

Canada, much like the United States, has seen large problems with unemployment since the 2008 financial crisis struck. Much like in the United States, after 2008, Canada saw the collapse of their housing market and a depression of their auto market. The result was job creators had to lay off workers, and Canadians, much like Americans, didn’t have much money to spend afterward. Without money to pay consumers for their work, consumers couldn’t put money back into the economy, and the entire system grinded to a halt. Nearly a decade after 2008, things have slowly started to pick up. Jobs are coming back into the economy, even if they are part time and lower pay. People are starting to purchase homes and cars again. With that being said, some are asking the question: why is Canada’s unemployment rate remaining steady at 6.8 percent despite a massive influx in jobs—59,000 in May alone? Economists predicting Canada’s jobs situation had estimated that the country would only see an increase of between 5,000 and 10,000 jobs. Yet the unemployment rate has remained the same for five months, despite the new job creation.

Perhaps the answer is in the nature of the jobs. Some of the new jobs that are popping up are transient by nature, only paying for a few months work at a time. The women’s world cup is currently in Vancouver, British Columbia, and the massive migration of tourists, players, coaches, support staff, and fans can definitely create new temporary jobs. The one month event is estimated to bring over $50 million into the city of Vancouver alone. Many of these jobs aren’t going to last long, but they’ll be using payment processors like emerchantbroker.com to get the Canadian merchant accounts that they need.

The question for Canada is can they turn those temporary jobs into permanent ones? It is a question that has ramifications for their economy and for the standard of living of their people. Canada does have several promising industries which have moved to the country over the past several years, most notably the pharmaceutical industry. Pharmaceutical companies are doing more business than ever in Canada, and the country has offered companies incentives such as tax breaks and research grants in order to start working within their borders. If Canada can invest more into the pharma industry, it can definitely end up paying off. Pharma firms look to establish themselves in a country for research and development, and often the jobs created are stable and long term. Canada should definitely look towards keeping the industry inside the country.

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