# (Un)Employment in Canada



## calrest (Apr 13, 2011)

Hi everyone, 

I´ve a few questions for you. What is your opinion on the current labour market condition? What do you think about the situation of (un)employment in Canada? Do you agree with the analysis in this article? => http://calgaryrealestate.ca/calgary-real-estate/2011/06/analysis-unemployment-canada/ 

Thanks for your opinions.


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## greeny (Jan 31, 2011)

Our situation is still in normal, But also it could be better. The market could need more stimulus that is a "double benefit". It injects demand into the economy. It's impossible to think of a situation where we would have a country that would say we're not going to have unemployment benefits.


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## sags (May 15, 2010)

High unemployment is a drag on the economy in many ways.

Besides the increased costs to the unemployment and welfare systems, every layoff bumps people closer to the bottom of the seniority list or closer to the exit door.

When you are looking over your shoulder, wondering if you are next to leave, you don't feel like buying a new home, car or furniture.

The overall unemployment rate is deceptive. For young people the jobless rate is much higher than the average. Recent graduates, burdened with student debt, but full of energy and enthusiasm, are not able to join the economy. If they lose a decade or more, they may never recover.

High unemployment also depresses wages, and reduces government receipts.

There is nothing good about unemployment.


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## sags (May 15, 2010)

In recent municipal elections, our city elected a "freeze taxes" new Mayor.

It sounds like a great idea, but we just suffered the 2nd costly "sinkhole" in the centre of our city. Not only is traffic congested beyond belief, but the cost of the 1st sinkhole was 1,000,000 and the second is still unknown.

Would it be better to hire more inspections and workers to avoid bigger problems, or do we save the tax dollars today so that we can pay out much more in the future?

Something for the citizens to decide.


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## HaroldCrump (Jun 10, 2009)

sags said:


> In recent municipal elections, our city elected a "freeze taxes" new Mayor.


Not sure which city & mayor it is, but freezing revenue without an equal (or more) cut in expenses is silly.

Most towns, municipalities, etc. near where I live are more or less ok from budget perspective.
Sure, lower property taxes would be welcome but when I consider what we get for the property taxes (excellent public library system, relatively good schools, prompt snow removal, etc.) I'm ok with that.

I think the story at the provincial and federal levels are entirely different.

Ontario is a black hole of taxes, expenditure and rampant wastage/corruption.
Municipal & local city workers have nowhere near the wages and benefits that the provincial and federal fat cats have.

At the provincial and federal levels, we have to trim the fat and transfer the savings to individuals and businesses in the form of lower taxes to stimulate employment growth.

At a philosophical level, it is in the nature of capitalism to have a certain level of unemployment and wage ceilings.
That ensures a steady available source of labor.
At points during economic cycles when we see rapid wage growth and low unemployment, there's usually a sharp and painful correction.
I vaguely recall during the crazy dotcom days, the US had something like 3% unemployment.
We all know how that played out in the years after.


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## greeny (Jan 31, 2011)

Definitely I only have to agree with your view. 



sags said:


> High unemployment is a drag on the economy in many ways.
> 
> Besides the increased costs to the unemployment and welfare systems, every layoff bumps people closer to the bottom of the seniority list or closer to the exit door.
> 
> ...


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## calrest (Apr 13, 2011)

Thanks guys for intersting views.


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## carverman (Nov 8, 2010)

sags said:


> In recent municipal elections, our city elected a "freeze taxes" new Mayor.
> 
> Would it be better to hire more inspections and workers to avoid bigger problems, or do we save the tax dollars today so that we can pay out much more in the future?


Freezing taxes,IMO is just a political election ploy..because nobody likes paying taxes on their hard earned money and all it does is to defer the true increases for later years.

As costs keep rising due to inflation, labour costs and market conditions, the expenditures of cities/municipalities keeps going up as well.

The former mayor of Ottawa got elected because he told everyone he would freeze taxes for 1-2 years. 
Even though he did that, the overall benefit to the taxpayer was only to defer those increases for
a couple of years, now we are playing catchup with the new mayor, who vows he will keep tax increases inline with "inflation".

We shall see how effective that is in another 2 years.


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## HaroldCrump (Jun 10, 2009)

Taxes and inflation are twins of the same parents.
Pick your poison - in the end it's only a question of the means, the end is the same.
It appears the politicians of pretty much most countries these days have "chosen" inflation over taxation.
Unfortunately no one is interested in the other alternative - to substantially cut government spending.


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