Canada's Unemployment Rate


For decades prior to the 1981-82 recession, the national unemployment
rates of Canada and the United States had been nearly identical. Since then, a
persistent "unemployment rate gap" has emerged. Throughout most of the 1980s,
Canada's unemployment rate has consistently been about 2 percentage points
higher than in the United States. The gap developed in spite of very similar
economic performances across the two countries: the growth rate of real per
capita incomes has been virtually identical since 1976. However, now, well into
the 90s, the gap has widened much more significantly. In the last five years,
the United States average has actually fallen from 6.7% to 6.5%, with a current
rate ...

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of the above factors.

"No society can be flourishing and happy, of which the far greater part
of the members are poor and miserable." (Adam Smith) This is the theory behind
the creation of social services such as unemployment insurance and welfare
payments in many countries. The Canadian government provides a substantial
"social safety net" for its population. At first, this seems like a fair and
proper thing to do, as it is in the best interests of society as a whole.
However, when this generosity is taken advantage of by undeserving recipients,
problems and controversy arise. The problem of abuse of Canadian social services
has become prominent in 1996. The general consensus of organizations such as the
Fraser Institute and the OECD, is that Canada's generous social safety net is a
disincentive to work, which leads to dependence on the government, thus
resulting in increased unemployment. By comparing the social benefits provided
for Canadians and Americans, the cause ...

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feature built into the U.S. system. In Canada the opposite
occurs, with no penalty for employers who overuse the system. Unemployment
insurance is regulated by the federal government, it applies in all provinces
and territories, and covers about 97% of all Canadian workers. Due to the
differences between the two systems, one can understand how Canadians have a
more generous system and an easier time in claiming benefits.

The differences in the requirements for obtaining unemployment insurance,
also result in a more generous distribution of benefits in Canada. Over the
years, there have been many changes in these requirements in the U.S., making it
less accessible and desirable for ...

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"Canada's Unemployment Rate." Essayworld.com. September 24, 2004. Accessed October 17, 2018. http://www.essayworld.com/essays/Canadas-Unemployment-Rate/14862.
"Canada's Unemployment Rate." Essayworld.com. September 24, 2004. Accessed October 17, 2018. http://www.essayworld.com/essays/Canadas-Unemployment-Rate/14862.
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PAPER DETAILS
Added: 9/24/2004 01:51:10 PM
Category: Economics
Type: Premium Paper
Words: 3175
Pages: 12

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