Business
Unemployment in Canada Hits 6.8% to an 8 Year High
The Canadian dollar fell Friday due to a sharp increase in Canada’s unemployment rate, but the greenback recovered overall, putting USD/CAD above 1.4150. The USD/CAD pair has reached its highest daily close in years.
The drop in the number of loonies follows Statistics Canada’s announcement that, under Justin Trudeau’s leadership, the unemployment rate has increased to its highest level since January 2017.
Canada’s economic stagnation and ongoing issues with homelessness and poverty are the main causes of the country’s high unemployment rate. As the wealth gap between the United States and Canada grows, the nation is also experiencing a flight of investment capital across some industries.
Federal Conservatives claimed, “Justin Trudeau has devastated Canada’s economy,” in a news statement on Friday. “Canada’s labour force grew by 137,800, which is more than double the gains in jobs,”
Since April 2023, Canada’s unemployment rate has risen by 1.7%.
“Worse still, this report showed that only 12% of new jobs were created in the private sector,” the Conservatives argued.
This is a direct effect of Trudeau’s relentless taxation and bureaucratic red tape, which have attacked private companies and industries. Because of Trudeau’s failing policies, Canada has lost more than $500 billion in foreign investment.
According to Conservatives, despite a 600,000 rise in the working population, Canada only added 329,000 jobs in the past year.
The third quarter GDP slowed significantly to 1% annualized, while Canada’s GDP per capita has been declining for six consecutive quarters, according to another Statistics Canada data released last week.
However, a Scotiabank economist has cautioned about Canada’s delayed government budget update. The Liberal government’s silence means Canadians may not receive a national update until after Christmas.
Rebekah Young, an economist at the Bank of Nova Scotia, said in a note on Wednesday that there are even speculations “swirling” that there won’t be a fiscal update. “It’s not clear when — or even if — it will come before the holidays, but the writing is mostly on the wall,” Young said.
She stated, ” More spending is clearly in the offing ” regarding the Liberals’ recently announced GST vacation and $250 rebate checks for working Canadians.
The House of Commons approved the GST component of that $6.3 billion economic stimulus package on November 28.
She stated, “the balance and then some is expected to keep Canadians from the polls a bit longer.”
The Liberals are financing the stimulus package to maintain the support of the New Democratic Party and prevent a vote of no-confidence.
As evidence of the government’s economic restraint, Finance Minister Chrystia Freeland promised in the 2024 budget that government expenditures would not exceed a $40.1 billion deficit in 2023–2024.
But the Parliamentary Budget Officer recently cautioned that the government has probably overreached itself.
