Published By : 13 Sep 2013 | Published By : QYRESEARCH
The rate of unemployment in Canada is projected to be higher than that of the United States in 2014, a Bloomberg News survey states. The average rate of unemployment in Canada will be around 7% by 2014 whereas that of the US economy will be 6.9%.
As governments and manufacturers continue to lay off personnel to cut costs, Canada\'s employment growth is on its way to being the slowest ever since 2001. The US, emerging from a deep slump, is now looking to make the most of pent-up demand. On the other hand, Canadian exporters are delaying investments and consumers are curbing credit debts.
Since 2008, Canada has recorded lower unemployment rates on a monthly basis, as reflected by data released by the US Labor Department and Statistics Canada. Canada\'s advantage over the US, that was as much as 2.2 percentage points in November 2010, has scaled down to a mere 0.2 percentage points in August 2013 with Canada recording 7.1% and the US recording 7.3%.
With Canada\'s higher unemployment rate the perception that it is outperforming the US will likely end. Interestingly, the US purchases three quarters of exports from Canada, giving the latter a reason to cheer with the job market recovery in US. However, figures predict that in 2015, the unemployment rate in the US will fall further than Canada\'s.