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Economy in Canada

In: Business and Management

Submitted By kjanelle
Words 1164
Pages 5
In 2008 when the global economy took a turn for the worst Canada managed to come out on top. This is thanks to the export of natural resources and commodities. The Canadian government immediately took charge and start making budget cuts in order to have a full recovery by 2015. (D.R., 2011) Canada has a large threat in its path; its dependence on the outside world.
Canada fared much better than was expected while other countries throughout the world declined and fell into a recession. There are nine specific key indicators that are important to consider when talking about Canadian economy. These are employment, unemployment, composite leading index, housing starts, consumer price index, real gross domestic product, retail sales volume, merchandise exports, and merchandise imports. (Statistics Canada, 2011)

Employment and Unemployment

In November 2011 the unemployment rate was set at 7.4%. The average unemployment rate in Canada from 1976 to 2010 was 8.53. (Trading Economics, 2011)The employment force is the number of people employed plus the number of people looking for employment. (Trading Economics, 2011) Unemployment includes those not looking for work, people in the military, and people institutionalized. (Trading Economics, 2011) Canada was able to add 93,000 jobs in June 2011, in effect dropped the unemployment rate to below the 8% mark. The gains in the labour force will offset nearly all of the losses that were a result of the downturn in 2008. (Contenta, 2010) This shows that Canada is on track for economic growth and stability.

Composite Leading Index

In November Canada’s composite leading index increased by 0.8%. (Kolet, 2011) This has been the largest increase in five months. (Kolet, 2011) The composite index is comprised of ten components and used to predict what will happen in the future economy. The rise in the index shows...

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