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How Much of Canada's Unemployment Is Structural?

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  • Lin, Zhengxi
  • Osberg, Lars

Abstract

This paper starts from the definition that "structural unemployment occurs when workers are unable to fill available jobs because they lack the skills, do not live where jobs are available, or are unwilling to work at the wage rate offered in the market." This implies that the number of vacancies in the Canadian labour market is an upper bound to the extent of "structural unemployment". The paper summarizes available estimates of the vacancy rate in Canada. In the high technology sector, vacancies may be equivalent to 2.2% of the labour force but evidence from more representative surveys indicates a range of 0.43% to 0.75% for the economy as a whole. Although during the 1980s the outward shift in the relationship between the Help-Wanted Index and the unemployment rate raised concerns that structural unemployment was an increasing problem in Canada, that shift has been reversed in the 1990s.

Suggested Citation

  • Lin, Zhengxi & Osberg, Lars, 2000. "How Much of Canada's Unemployment Is Structural?," Analytical Studies Branch Research Paper Series 2000145e, Statistics Canada, Analytical Studies Branch.
    • Handle: RePEc:stc:stcp3e:2000145e
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    File URL: https://www150.statcan.gc.ca/n1/en/catalogue/11F0019M2000145
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    References listed on IDEAS

    as
    1. Boothby, D., 1995. "COPS : A Revised Demand Side," Papers t-95-2, Gouvernement du Canada - Human Resources Development.
    2. Chantal Dupasquier & Alain Guay & Pierre St-Amant, 1997. "A Comparison of Alternative Methodologies for Estimating Potential Output and the Output Gap," Staff Working Papers 97-5, Bank of Canada.
    3. Reid, Frank & Meltz, Noah M, 1979. "Causes of Shifts in the Unemployment-Vacancy Relationship: An Empirical Analysis for Canada," The Review of Economics and Statistics, MIT Press, vol. 61(3), pages 470-475, August.
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    Cited by:

    1. Roa Maria J & Vazquez Francisco Jose & Saura Dulce, 2008. "Unemployment and Economic Growth Cycles," Studies in Nonlinear Dynamics & Econometrics, De Gruyter, vol. 12(2), pages 1-21, May.
    2. Lars Osberg, 2011. "Why Did Unemployment Disappear from Official Macro-Economic Policy Discourse in Canada?," New Directions for Intelligent Government in Canada: Papers in Honour of Ian Stewart, in: Fred Gorbet & Andrew Sharpe (ed.),New Directions for Intelligent Government in Canada: Papers in Honour of Ian Stewart, pages 127-162, Centre for the Study of Living Standards.
    3. Aysun, Uluc & Bouvet, Florence & Hofler, Richard, 2014. "An alternative measure of structural unemployment," Economic Modelling, Elsevier, vol. 38(C), pages 592-603.
    4. Zhang, Xuelin & Morissette, Rene, 2001. "Which Firms Have High Job Vacancy Rates in Canada?," Analytical Studies Branch Research Paper Series 2001176e, Statistics Canada, Analytical Studies Branch.
    5. Zhang, Xuelin & Morissette, Rene, 2001. "Quelles entreprises ont des taux de vacance eleves au Canada?," Direction des études analytiques : documents de recherche 2001176f, Statistics Canada, Direction des études analytiques.
    6. Picot, Garnett & Heisz, Andrew & Nakamura, A., 2001. "Job Tenure, Worker Mobility and the Youth Labour Market During the 1990s," Analytical Studies Branch Research Paper Series 2001155e, Statistics Canada, Analytical Studies Branch.

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