The rate of unemployment rose as expected in both Canada and the U.S. last month. The rate of increase for the U.S. was somewhat better than analysts feared suggesting that in the U.S. there may be signs of the system bottoming out. But the rates are still bad news. In fact, the rate of labour underutilization as measured by the sum of the rate of unemployment, added to by the number of marginally attached workers, including discouraged workers and those working part-time when they preferred to work full time rose to 16.4 % up from 9.4 % in May of 2008. This gives us a good idea of the amount of labour displacement and hardship associated with the recession which is well on its way to being the worst recession of the post World War 2 era.
Unemployment rose to 8.4 % in Canada, including 9.4 % in Ontario hard hit by the slump in manufacturing and 8.7 % in Quebec, a region of higher unemployment for some time.The rate is 9.1 % in Toronto and 9.4 % in Montreal, the two largest Canadian metropolises. Unfortunately , it is quite likely that the rates have not yet peaked in both countries and unemployment will continue to rise, perhaps more slowly in the months to come.
It is essential that the stimulus monies which have been approved by Parliament and Congress now get spent so that they can start doing some good.
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