CLICK to enlarge CAD Unemployment & Trade
Unemployment in Canada is not unusual. As can been seen by the top chart to the left, the current (May 2012) unemployment rate is at 7.3% and since the early 1970's the unemployment rate has spent about 80% of the time at or above the current rate. So if the CRB continues to drop as a reflection of the global slowdown, then as hewers, drawers and diggers we can expect to see Canadian unemployment remain elevated. 10% or higher unemployment would not be unusual. Now if we look at the bottom chart we can see that the crash into the March 2009 Pit of Gloom has had a profound effect. Government price control policy has failed big time. The Canadian Trade balance is in deficit and likely to remain there as credit contracts globally. Low interest rates cannot by themselves create demand, and they certainly have not helped Canadians to learn how to be more productive. Imagine if Canadians actually made stuff out of all the resources we have.
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