Employment in Canada is up by a million … but that is hardly enough

Why hasn’t the output gap closed despite stimulative monetary policy and the unemployment rate decreasing? Miles Corak outlines the employment situation.

Economics for public policy

one-in-a-million

“Employment is up by one million since the recession ended.”

A statement like this may indeed be a big talking point when Statistics Canada releases the results of its monthly Labour Force Survey on Friday.

While a million more people at work sounds like a lot, the Canadian population has also increased by roughly the same amount with the result that the fraction of Canadians working has been pretty well unchanged for the last five years, and has yet to return to rates before the recession.

A million is a big number, but it’s not enough to signal a complete recovery from the recession.

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