Canada Unemployment Rate from 1950-2014 - Assignment Example

Canada Unemployment Rate from 1950-2014From the above diagram, it is evident that unemployment rate has grown across all age groups from 1950 to 2014. The age group with the highest level of unemployment rates is between 15-24 years followed by 25-44 years then 45-64 years and finally 65-69 years.From the above diagram, the level of unemployment over the years has been higher among female than male from 1950 to 1984. Between 1985 and 2014, the unemployment rate for men has been higher than for women.

During the period between 1984 and 1995, the unemployment rates for female fell dramatically perhaps due to the wave of feminism that hit Canada and other parts of the world during that period. More women were able to secure employment with the introduction of equality in the labor markets. The employment rate for women increased during this period.From the data above, Newfound land & Labrador has had the highest levels of unemployment rates among the geographical regions in Canada. On the other hand, Alberta and Saskatchewan have had the lowest unemployment rates among the regions.

These statistics are influenced by the demographic characteristics of the regions. Inflation Rates for CanadaPeriod (years)Average inflation rate (%)1950-195431955-19592.51960-19641.81965-19691.61970-19741.51975-19791.41980-19841.21985-19891.21990-19941.11995-19991.12000-20041.42005-20091.62009-20141.4Overall unemploymentPeriod (years)Average unemployment rate1950-19543.81955-19594.41960-19645.21965-19695.81970-19746.61975-19797.81980-19849.41985-19899.61990-199410.81995-19999.22000-20047.42005-20096.

62009-20147.4Phillips Curve It is evident from the above data that the unemployment rate influences the inflation rate in the economy. The unemployment rate for Canada was 3.8% in the period between 1950 and 1954. At this same period, the inflation rate was highest at 3%. On the other hand, the level of unemployment was highest in the period between 1990 and 1994. At this same period, the inflation rate was lowest, at 1.1%. This curve indicates that changes in unemployment levels directly affect the inflation rate.

The curve is downward sloping showing that inflation rate reduces as unemployment rates increase from 1950-1990. In the period between 1990 and 2009, the unemployment rate reduces from 10.8% to 6.6%. This directly affects the inflation rate, which increases from 1.1% to 1.6%. The level of Government spending generates economic growth. As such, unemployment rates fall as firms compete for workers by raising nominal wages. Wage costs for firms rise because workers have more bargaining power in seeking nominal wage increases.

Firms react to the increases in wage costs by increasing the prices of goods and services. The data above better explains the Phillips curve, which explains the trade-off between unemployment rate and inflation rate.Work CitedStatistics Canada. (n.d.). Retrieved February 3, 2015, from http://www.statcan.gc.ca/start-debut-eng.html