Question

1) Find unemployment rates from 2010-2020 in Canada and present it in a graph.

2) what are the causes of unemployment?

3) Does a high minimum wage result in higher unemployment?

4) Does employment insurance cause unemployment?

Answer 1

2. Causes of unemployment:

A. Increase in population which the economy may not be able to provide job opportunities for all the people forming part of the countrys population.

B. Slow economic growth in the case of developing countries,as the economy fails to keep up the demand for employment as an increasing share of people are unable to find job.

C. Slow industrial growth where the rate of growth is nevertheless fairly slow.

D . Seasonality of agricultural occupations where agriculture provides employment only on seasonal basis.

E. Industrial development has made small scale or cottage industries considerably less economically attractive.

F. Shortage of raw materials, equipment, facilities, fuel may kead to decrease in production which shall in turn lead to unemployement.

G. Ineffective economic planning may account for significant gap between labour supply and labour demand.

H. The white collar jobs have increased which means more people are educated however the country may not be able to provide equal job opportunities for all.

3. Higher minimum wages :

If the workers are paid more, the employers will hire fewer or them so hire minimum wages, while good for some of the workers, it shall still amount to have a negative impact on the total employment, with fewer job opportunities.

Alos higer minimum wages advocates that the minimum wages needed to rise considerably just to keep workers and their respctive families out of poverty. However increasing the minimum wages can also lead to increased unemployment, depending on such increase, the employer may seek automation as opposed to hiring workers. Determining the right minimum wage increases the benefits larger parts of the population while keeping unemployment static is the key goal.

For people who make the minimum wage for a brief period may later move on to a better paying work. For instance, teenager in fast food job the minimum wages earned may not be an issue to manage, however for people with little expectation of higher paid work it's a significant issue.

The federal minimum wage of $7.25 an hour has remain unchanged since July 2009, that works out to be $290 for a 40hour week and $14,500 for 50 week.

4. Employment insurance benefits:

As on September 2020, there are certain changes implemented with respect to the employment insurance benefits, and minimum unemployment rate of 13.1% applies to all regions across Canada.

Currently, Canadians need to work between 420 and 700 hours in the past year to qualify for employment insurance benefits. The precise number of hours depends on the unemployment rate in the region, where the worker resides. Employment insurance benefits can be collected for a year depending again on the unemployment rate in the region and the amount of insurable hours worked for the past year.