The Canadian Labor Market: Developments, Prospects, and Policy

Author/Editor:

Eswar S Prasad

Publication Date:

August 1, 1994

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

This paper examines recent developments in the Canadian labor market. Using disaggregated labor market data, various hypotheses concerning the slow employment growth and rise in unemployment since 1990 are evaluated. The analysis indicates that a large part of the recent rise in the unemployment rate may reflect an increase in the structural rather than the cyclical component of unemployment. Various sources of labor market rigidities that may have contributed to the increase in structural unemployment are examined. In particular, the role of the unemployment insurance system in contributing to labor market rigidity and measures for reforming this system, including the recent proposals of the government, are discussed. Finally, this paper examines active labor market policies that could help to alleviate structural unemployment.

Series:

Working Paper No. 1994/097

Subject:

Employment Labor Labor force Labor markets Unemployment Unemployment rate

English

Publication Date:

August 1, 1994

ISBN/ISSN:

9781451851953/1018-5941

Stock No:

WPIEA0971994

Pages:

36

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