Answer to Question #83599 in Economics of Enterprise for Shaendra

Question

Since Great Depression, Canada experienced double-digit unemployment rates several times. Explain the Canadian experiences of double-digit rate of unemployment. Why unemployment was so high for those periods?

Answer 1

The most recent period of double-digit unemployment in Canada was in the early 90's. For instance, the rate of unemployment, according to the World Bank data, was 11.38% in 1993. Among the main reasons for unemployment in Canada that time the following ones may be pointed out: economic crisis, high structural unemployment, demographic situation in the country, labor market disproportions, influence of trade unions and minimum wages.