Rising unemployment forces Canadians to hold on to their jobs
According to statistics, back in July employment fell by 44,500 jobs. This happened despite the start of the country's economy emerging from the recession after the 1990s. The construction sector was hit hardest, and the service sector suffered nearly as much. As for industry, cuts there were insignificant. The unemployment rate in Canada reached 8.6% due to a significant number of people leaving the labor exchange.
Such dismal figures could change forecasts concerning the period of economic improvement and recovery.
Jim Flaherty, Canada's finance minister, said in an interview that in the coming months unemployment will not decline but will only increase. Consequently, the date for economic recovery in the country will be postponed. This is the view of Eric Lancel, an economist at a consulting firm.
As for consumer activity, it increased in July of this year, but much less than forecast. A special report confirms this. Jim Flaherty, Canada's finance minister, warned residents that the recession continues, as does rising unemployment.
For Stephen Harper, Canada's prime minister, the unemployment rate is an important issue, as it is a significant lever of pressure for the opposition. In light of the situation, the Liberals have begun demanding improvements in unemployment insurance conditions. If nothing changes, early elections could be called as soon as autumn of this year.
However, it is worth noting that not everything is so bad. Compared to the beginning of the year, the unemployment rate in the country is declining. This is facilitated by improvements in the industrial sector, where steel doors, gates, and furniture are manufactured. And the July figures are a consequence of students wanting to work, who are free during the summer. Some students work permanently – they promote websites, write content for various thematic portals, or do any other work that can be done outside of school hours.