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Chronic Rigidity: The East's Labour Market Problem and How to Fix It

Author

Listed:
  • Yvan Guillemette

    (C.D. Howe Institute)

Abstract

Canada’s generally good labour market performance over the past several years, exemplified in a 33-year, record-low unemployment rate, masks strikingly large regional disparities. In September 2007, the national unemployment rate was 6 percent, but it ranged from 2.8 percent in central Alberta to 17.8 percent in southern Newfoundland and Labrador. Such wide variances are also present within single provinces, from 5.4 percent to 12 percent in New Brunswick, for example, in that same month. These statistics suggest rigidity in Canada’s labour market. The economy creates jobs at a rapid pace, but people do not readily move to where the jobs are, leaving large pockets of unemployment. And hence our economy as a whole does not achieve its full economic potential.

Suggested Citation

  • Yvan Guillemette, 2007. "Chronic Rigidity: The East's Labour Market Problem and How to Fix It," e-briefs 51, C.D. Howe Institute.
    • Handle: RePEc:cdh:ebrief:51
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    File URL: https://www.cdhowe.org/public-policy-research/chronic-rigidity-east%E2%80%99s-labour-market-problem-and-how-fix-it
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    Citations

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    Cited by:

    1. 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.

    More about this item

    Keywords

    social policy; labour market performance; unemployment rates;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings

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