March

Q:  How does Canada’s unemployment rate compare internationally over time?

A:  Table 1 shows historical unemployment rates for several countries in the Organisation for Economic Co-operation and Development (OECD). This table highlights a major difference between Canada’s recent economic performance and that of our main trading partner, the United States. In 1981 our unemployment rates were equal. Since then, our unemployment rate differential has deteriorated considerably, so that in 1997, Canada’s rate was 4.3 percentage points higher.

Click Here to View Table 1

Q:  How long do people remain unemployed in Canada? How does this compare internationally?

A:  In 1997, 25.7 percent of unemployed Canadians looked for work for more than six months, while 12.5 percent searched for more than 12 months. The portion of unemployed people who have been out of work for over a year varied considerably among OECD member countries, from 8.7 percent in the United States to 66.3 percent in Italy (see table 2). Of the countries listed in table 2, Canada has the second lowest incidence of long-term unemployment. The lowest is in the United States.

Click Here to View Table 2

Q:  How does Canada’s employment creation record compare internationally?

A:  Canada’s record is good compared to the EU, but shows room for improvement when compared to the US. From 1981 to 1997, the US averaged employment growth of 1.58 percent per year, Canada’s employment growth averaged 1.38 percent per year, while the EU only managed 0.21 percent. This month’s graph looks at employment growth rates in Canada, the US, and the EU.

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Last Modified: Wednesday, October 20, 1999.