“Pointing to a falling unemployment rate as a sign of positive economic performance could be misleading.”

Unemployment rate now less reflective of overall labour market performance due to demographics

By Fraser Institute —— Bio and Archives--January 16, 2018

Canadian News, Politics | Comments | Back To Full Article

VANCOUVER—A falling unemployment rate will not necessarily indicate a healthy growing labour market in the future, in part because Canada’s population is getting older and more Canadians are retiring from the workforce, finds a new study by the Fraser Institute, an independent, non-partisan Canadian public policy think-tank. “Historically, the unemployment rate and the employment rate worked in tandem—when one went up, the other went down—but that’s not always true anymore,” said Jason Clemens, executive vice-president of the Fraser Institute and co-author of Why the Unemployment Rate is No Longer a Reliable Gauge of Labour Market Performance.

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