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UNEMPLOYMENT RATE - OFFICIAL
There
are TWO stories summarised and quoted in full on this page
STORY 1:-
THE OTTAWA CITIZEN -----BUSINESS -----WEDNESDAY, SEPTEMBER 22, 1999
Determining the jobless rate in Canada
Measuring the U.S. way would lower rate:
StatsCan
By ERIC BEAUCHESNE
· Canada's unemployment rate last year would have been more than a half point lower if measured the American way. But it still would have been more than three points higher than the U.S. rate. Those are among the findings in a report yesterday by Statistics Canada into alternative measures of unemployment. The federal agency is trying to paint a clearer picture of some hidden aspects of the job market.
· The US, for example, doesn't count someone as unemployed unless he has actively searched for a job, whereas anyone in Canada who has merely looked at the help-wanted ads is included among the jobless. If Canada followed the U.S. model, the unemployment rate here last year would have been 7.6 per cent instead of the official 8.3 per cent, still way above the 4.5 per cent in the U.S.
· StatsCan also looked at other alternative measures such as two that examine longer-term unemployment. These measures tell a lot about the hardships faced by the jobless, the agency says. "It is useful to know the extent of long-term unemployment since those out of work for prolonged periods of time are more likely to suffer financial loss and may have a harder time of finding a new job, Statistics Canada noted. For example, those out of work for more than a year can no longer collect benefits and may have used up their savings.
· Unlike the official jobless rate, which tends to decrease with age, long-term unemployment is highest among older workers, who find it more difficult to find jobs once they are unemployed.
· Many of the alternative measures of unemployment are higher than the official rate, and reflect the proportion of unused labour in the economy. For example, if discouraged workers - people who want jobs but aren't looking because the work isn't available are counted among the unemployed, the rate last year would have risen by one-half point to 8.8 per cent.
FULL STORY:-
THE OTTAWA CITIZEN -----BUSINESS -----WEDNESDAY, SEPTEMBER 22, 1999
Determining the jobless rate in Canada
Measuring the U.S. way would lower rate:
StatsCan
By ERIC BEAUCHESNE
Canada's unemployment rate last year would have been more than a half point lower if measured the American way.
But it still would have been more than three points higher than the U.S. rate.
Those are among the findings in a report yesterday by Statistics Canada into alternative measures of unemployment. The federal agency is trying to paint a clearer picture of some hidden aspects of the job market.
In this renewed effort, StatsCan is showing the extent of long-term unemployment and taking a measure of the slack in the Canadian labour force. It is also trying to give a true comparison of US. and Canadian joblessness.
The US, for example, doesn't count someone as unemployed unless he has actively searched for a job, whereas anyone in Canada who has merely looked at the help-wanted ads is included among the jobless.
If Canada followed the U.S. model, the unemployment rate here last year would have been 7.6 per cent instead of the official 8.3 per cent, still way above the 4.5 per cent in the U.S.
Some analysts argue the gap would be even less if not for Canada's more generous insurance system. The EI system, however, is no longer as generous as it once was, with less than 40 per cent of the unemployed now getting benefits, compared with more than 75 per cent at the start of the decade.
StatsCan also looked at other alternative measures such as two that examine longer-term unemployment. These measures tell a lot about the hardships faced by the jobless, the agency says.
"It is useful to know the extent of long-term unemployment since those out of work for prolonged periods of time are more likely to suffer financial loss and may have a harder time of finding a new job, Statistics Canada noted.
For example, those out of work for more than a year can no longer collect benefits and may have used up their savings.
The long-term unemployment rate - the proportion of the labour force out of work for a year or more - was 1.1 per cent last year.
The proportion out of work three months or more, suggesting they may face hardship as well, was 3.3 per cent.
Unlike the official jobless rate, which tends to decrease with age, long-term unemployment is highest among older workers, who find it more difficult to find jobs once they are unemployed.
Those without a high school education are also more likely to be among the long-term unemployed.
Long-term unemployment also reflects regional conditions, and is highest in Newfoundland at about three per cent and lowest in Alberta at only 0.3 per cent.
Many of the alternative measures of unemployment are higher than the official rate, and reflect the proportion of unused labour in the economy.
For example, if discouraged workers - people who want jobs but aren't looking because the work isn't available are counted among the unemployed, the rate last year would have risen by one-half point to 8.8 per cent.
People are also working part time because they can't find full-time employment. If the shortfall in hours worked is included in the official jobless rate, StatsCan says, the rate would hit 10.6 per cent.
The most comprehensive supplementary unemployment rate includes discouraged workers, involuntary part timers and those who aren't working but aren't looking for a job, such as waiting to be recalled by a former employer. That rate was 11.5 per cent last year, or 3.2 points higher than the official jobless rate of 8.3 per cent.
End of
Story 1
STORY 2:-
THE OTTAWA CITIZEN -THE EDITORIAL PAGE -TUESDAY, DECEMBER 7, 1999
A slow
waltz toward
full
employment
LAWRENCE MARTIN
THE NATION
· Late last week it was announced that Canada's involuntary leisure rate had fallen to 6.9 per cent. For the first time in a rather hellish run of almost two decades, unemployment was under seven per cent.
· In real numbers, 6.9 per cent means that there are 1.1 million Canadians out of work.
· Unemployment is diminishing, inflation is in check, there is no recession in sight and in terms of long-range trends, Canada and other leading democracies have in their pockets the big ace card of demographics. Before long, the baby boomers will be reaching retirement age and there will be far smaller numbers of job-seekers for the Canadian and other economies to satisfy.
FULL STORY:-
THE OTTAWA CITIZEN