CANADIAN IMMIGRATION NEWS

Canada's Unemployment Rate Lowest in Three Decades

Monday, 13 August 2007

In July, Canada's rate of unemployment fell to a new low of 6%. This is the lowest rate of unemployment that Canada has experienced since 1974, according to Statistics Canada.

Much of the increase in available jobs is being driven by the oil-rich economy of Alberta - one of Canada’s economic success stories. However, construction booms in British Columbia in advance of the 2010 Olympics in Vancouver, and the always-strong Ontario manufacturing and services economy have also contributed to Canada’s employment gains.

The surge in job growth has led to upward pressure on wages across Canada, and even some parts of the United States. The average Canadian wage was 3.7% higher in July 2007 than at the same time in 2006.

The tightening pool of labour has also meant that Canadian employers are increasingly looking overseas to find workers. Alberta and British Columbia especially have seen increases in the number of work permit applicants who want to work in the Western provinces and take advantage of the economic boom.

Many economists assume an employment rate of 6% to be as close to no-unemployment as possible in a modern economy. Practically speaking, an unemployment rate of 6% means that just about everyone can find work.