B.C. unemployment rate edges up as more join workforce

Summary

On Friday, Statistics Canada reported that as more people looked for work, B.C’s unemployment rate increased to 4.3% in September. There was close to 10,000 people that joined the labor force in September which brought the unemployment rate up 0.3% from August. A labor-market analyst, Robert Mattioli said that the unemployment rate is low and going to stay low for the future to come. The wages in B.C have increased 3.5% in the last year and at the end of August averaged $20.37 an hour, but an Albertan is earning $22.33 an hour, a 5.7% increase. Mattioli said it was a record gap of $1.96 and it’s still going to continue to increase. A report by the Institute of Chartered Accountants in B.C found that although wages in B.C are lower than Alberta, when inflation is taken into consideration, wage is stronger in B.C. In 2006, B.C workers saw the pay increase 1.8% post-inflation, compared to only 0.4% in Alberta, which experienced much higher inflation; according to the BC Check-up report. Moreover, Canada’s unemployment fell to a 33-year low of 5.9% in September, the first time it’s been below 6% since November 1974. On the other hand, wages rose to 4.2%, which was the biggest increase since 1997.

Connection

From this article, since more people started to look for work that weren’t looking before, the unemployment rate increased. This shows that the measure in which unemployment is taken, isn’t very specific and is too broad based. Just because a person is looking for a job, it shouldn’t raise the unemployment rate. This also speculates a bit in structural unemployment because there may be jobs available, yet the skills of an individual might not meet the requirements. Another issue this article talks about is wages and inflation.  Although the wages in BC are lower than Alberta, inflation proves that BC wages are stronger and will remain stronger. Even with the $1.96 gap between the two wages, BC came up on top because inflation seemed give us the advantage and stronger wage. Although Canada’s unemployment fell to 5.9%, the wages increased by 4.2%, which somewhat balances it out.

Reflection

In my opinion, I think that just because people have started to look for jobs, it shouldn’t increase the unemployment rate. This just comes to show that the factors that are taken into consideration to put people into the unemployment bracket aren’t an appropriate measure. I think that since we’re coming out of a recession, that’s what made individuals go out to look for a job. However, even if I went out to look for a job, being a student, I wouldn’t be considered in the unemployment bracket. Moreover, I think the Labor Force Survey needs to change some of the guidelines in measuring unemployment. Also, the wages increasing shows that Canada is doing much better than the past years.

http://www.canada.com/vancouversun/news/business/story.html?id=acb8d074-0d8a-4ed3-95b0-832a7b025384&k=60158