There was an increase of 46,400 jobs reducing Canada’s unemployment rate to a low 5.8% in January. Economists had only predicted there to be 10,000 jobs leaving the unemployment rate at 6%, but the unexpected job growth led to the Canadian dollar to be at $1.0002 US. As a result, the Canadian economy is flourishing better than the United States’ economy leaving some economists predicting that US, being Canada’s top trading partner, would soon hinder the Canadian economy’s growth. Hourly wages increased by 4.9% well above the annual inflation rate of 2.4%. Eight provinces added jobs, with only New Brunswick and Nova Scotia to have an increase in unemployment.
Canada’s reduction in their unemployment rate will increase the GDP showing a stronger economy as money is continuously flowing around the country. Provinces such as New Brunswick and Nova Scotia may have had an increase in job loss due to seasonal unemployment since they heavily rely on fisheries being coastal areas. The only problem would be the increase in wages as it may cause a demand-pull inflation. With more money to spend people can buy more of what they want. As the demand increases, so does the price since the supply remains the same.
I think it is great the Canada’s unemployment decreased by such a large number since I’m a civilian in this country. With a huge 46,400 job increase, it shows that Canada is one of the better countries to live in with such a low unemployment rate. Also, the Canadian economy’s growth in strength resulting in the Canadian dollar rising close the American dollar will affect me since my family and I go on shopping trips to the US quite commonly during the longer breaks of no school. Recently I’ve been to the United States and it seemed everything was 75% there. With the value of the dollars being equal, it may be quite frequent for Canadians to start shopping in the States more often.
http://www.cbc.ca/money/story/2008/02/08/jobless-rate.html
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The addition of 46,400 jobs is a marvellous addition to Canada. This will greatly affect me during the summer as there will be a greater selection of jobs I can apply for. Also, with all the sudden increase in jobs, it’d mean that our Canadian dollar would rise. Although at the current time of posting, the Canadian dollar is currently under the US (1CAD = 0.98 USD), I believe that the Canadian economy will continue to prosper and in the upcoming years, the Canadian dollar will be substantially be worth more than the US dollar. Furthermore, the increase in our GDP will surely increase interest rates, making investments be more worthwhile.
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