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The view from a lucky country: explaining the localised unemployment impacts of the Great Recession in Canada

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  • Jean Dubé
  • Mario Polèse

Abstract

The article assesses the impact of the Great Recession on 83 Canadian regions, focussing on the unemployment rate as principal indicator. A dual empirical approach is used: examination of regional unemployment rate variations before, during and after the recession using a labour supply and demand framework; examination of the determinants of regional variations via a spatial econometric model. The findings reveal that Canadian labour markets reacted on the whole as expected to the Great Recession, labour supply adjusting to falling labour demand, thus keeping (rising) unemployment rates in check, although rarely completely. Small, rural regions were often most responsive. The primary determinant of regional variations in unemployment rates was found to be variations in neighbouring regions suggesting highly localised impacts.

Suggested Citation

  • Jean Dubé & Mario Polèse, 2016. "The view from a lucky country: explaining the localised unemployment impacts of the Great Recession in Canada," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 9(1), pages 235-253.
    • Handle: RePEc:oup:cjrecs:v:9:y:2016:i:1:p:235-253.
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    File URL: http://hdl.handle.net/10.1093/cjres/rsv025
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    References listed on IDEAS

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    1. Yvan Guillemette, 2007. "Chronic Rigidity: The East's Labour Market Problem and How to Fix It," e-briefs 51, C.D. Howe Institute.
    2. Richard Shearmur & Philippe Apparicio & Pauline Lizion & Mario Polèse, 2007. "Space, Time, and Local Employment Growth: An Application of Spatial Regression Analysis," Growth and Change, Wiley Blackwell, vol. 38(4), pages 696-722, December.
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    Cited by:

    1. D Michael Ray & Ian MacLachlan & Rodolphe Lamarche & KP Srinath, 2017. "Economic shock and regional resilience: Continuity and change in Canada's regional employment structure, 1987–2012," Environment and Planning A, , vol. 49(4), pages 952-973, April.

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