Unemployment In Canada

A Descriptive Analysis of Unemployment Rate and Gross Domestic Product The economy of a country is based on many factors. These factors determine if the country has a healthy economy or if it is going through a crisis. One among many factors which might drastically influence the economy is the unemployment rate. To understand if the economy is doing better or not, the economists must take into consideration the production of the country. Thus, the economists are able indicate the unemployment rate of the country. So, is there a direct but opposite link between the Gross Domestic Product and the unemployment rate? Yes, there is a direct but opposite link exists between the Gross Domestic Product and the unemployment rate. The following paragraphs

The authors of Macroeconomics, James, Wellman & Aberra states that, the Gross Domestic Product (GDP) is the market value of all final goods/services produced in an economy during a specific period (James, Wellman & Aberra, 2015, p.127). The real GDP of a country estimates the economic growth or the economic decline during the period of a year. The economy of Canada was in recession for three quarters which started from the fourth quarter of 2008 to the second quarter of 2009 while analyzing the data from Statistics Canada (Statistics Canada, Table 380-0084). To evaluate if this phase is recession or not, according to James et al., describes recession as “a period of economic contraction, characterized by a general down followed by the peak and is characterized by having a decline in the real GDP for two or more consecutive quarters” (James et al., 2015, p.316). In the table, the GDP during the fourth quarter of 2008 is -1.3% (Statistics Canada, Table 380-0084). As mentioned in the table provided by Statistic Canada, during the first quarter of 2009 the percentage declines to -2.5% and leading it to -1.1% during the second quarter of 2009 (Statistics Canada, Table 380-0084). All things considered, it is proved that Canada was in recession for three quarters. According to the economists, during the recession economic phase buyers’

The article mainly focuses on comparing several recessions in Canada and the consequences faced by the workers during the economic situation. “Entre octobre 2008 et octobre 2009, l'emploi total a diminué de 400 000 ou de 2,3 pour cent, tandis que le taux de chômage a augmenté, passant de 6,3 pour cent à 8,6 pour cent” was mentioned by the author in the article (La Presse Canadienne, 2009). The author in the article remarks that the unemployment rate had increased during the fourth quarter of 2008 till second quarter of 2009. The Canadian recession had affected over 218 000 jobs during the period of October 2008 till October 2009 (La Presse Canadienne,