Chapter 5: Canada's Aging Labour Force

http://www.canada.com/victoriatimescolonist/news/story.html?id=84c83203-de2c-42bf-9eba-b75bf6a41057&k=37551


According to the Labour Force Census of 2006 released on March 4th 2008, Canada's work force is now comprised of more workers who are over 40 years of age than those who are younger. You can find these workers more frequently working in retail stores rather than in factories. This situation reflects the consequences of the increased value of the dollar. However, after comparing the 2001 census with that of 2006, Canada has more workers in 2006. As well, in comparison with the employment growth of other industrial economies, Canada has the strongest and is increasing at 1.7 percent in average annual rate. Because of this stable economic growth, older workers are motivate to stay within the workforce. Then, concerns about the aging baby boomers and their retirement were brought up. Because the generation that follows consists of fewer people, labour shortages would soon become a problem. At this moment though, Canada's Job Market seems to be in good condition because employment rate has risen almost everywhere and in almost every sector. Although this is the case, educated workers are still preferred above those who are not.


This article discusses the employment and unemployment. Unemployment was said to be a concern for Canada. However, Canada is nowhere near the danger zone. Because unemployment rate is down, more money is being put into the flow of money within Canada's economy. Next, the trend of the shift of employment away from goods producing sector to service providing sector within the last 50 years seem to hold true and is even more so due to the strong dollar. This represents Frictional Unemployment which is in my opinion the best type of unemployment. Because the opening of more jobs, people are now leaving their jobs in search of a better one.

In my opinion, although the job market seems to be looking well for Canada, it does not look well for Canada's economy. Because of increase of Canada's dollar, foreign exchange with Canada has decreased. Now that it is cheaper to purchase from other countries, goods within Canada is being purchased less from Canada and foreign investors with companies set up in Canada are now moving back to where it is less expensive. As well, Canadians are now going to the states to purchase things. Does that mean that the money that workers earn in Canada is going to be spent elsewhere?