The Ugly Hidden Truth behind Canada’s Low Unemployment Rate

Canada’s low unemployment rate is a political report that everyone from Trudeau’s administration goes to whenever they have nothing left up their sleeves. It is that one accomplishment used by them to justify or rather minus out all other erroneous decisions or policies. For instance, Bill Morneau, Canada’s Finance Minister, also mentioned the unemployment rate and how it was at its lowest in 40 years.

While the ruling party is hell-bent on misguiding us, a broader analysis of Canada’s labor market would reveal the hidden perils here, especially when measured against that of United States. To properly judge the overall strengths of Canada’s labor market, we should use metrics other than just the study of the unemployment rate.

The same was done in a recent study, which compared the labor market performance of both U.S. states and Canadian provinces from the year 2015 to 2017. The study is comprehensively focused on eight indicators, and calculates a score ranging from 0 to 100. The indicators include the unemployment rate, total employment rates, private-sector employment, worker productivity (measured by analyzing the average value of services and goods produced by every worker) and the extent to under-employment. Jurisdictions that are higher-scoring are ranked better.

The results showed a rather unprecedented and less talked about avenue. Canadian provinces significantly underperformed when they were put against the U.S. states.

Every Canadian province was ranked in the latter half of the total 60 jurisdictions. Even Canada’s self-proclaimed top performing labor market, British Columbia, scored just 53.6 points. Newfoundland was recorded last with a meager score of 16.6.

Few talking points from the report include the average private-sector employment rate, which saw all Canadian provinces rank in bottom third. Moreover, despite Canadian claims of the lowest unemployment rate in years, some Canadian provinces were still ranked below U.S. states in terms of unemployment.

This is indeed a sorry representation of facts beyond Canada’s claims of the lowest unemployment rate in history.

All that meets the eye is clearly not true here.

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Emmy Skylar

About the Author: Emmy Skylar

Emmy Skylar started working for Debate Report in 2017. Emmy grew up in a small town in northern Manitoba. But moved to Ontario for university. Before joining Debate Report, Emmy briefly worked as a freelance journalist for CBC News.  She covers politics and the economy.

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