As one of the world's wealthiest nations - the country was ranked as the tenth largest economy in the world by the IMF in 2010 - Canada is known for its relatively unrestricted, free-market economic system. On one hand, Canada's robust economy is what helped protect it from total collapse when the 2007-2010 financial crisis struck; while, on the other hand, its sheer scale meant it had a lot more to lose after the market crash. In order to assess the current state of Canada's economy, it's useful to see how the nation's chief industries were impacted by the global recession and to examine how employment levels have changed during this period.
To begin, Canada's main industries include: manufacturing, the service sector, energy and agriculture/farming. Within these key markets, the recession has had a varying effect. While many people have pointed fingers at situations which contributed heavily to the 2007-2010 worldwide economic downturn, it is understood by many to be a far more complex situation.
The decline of certain markets had a domino effect on many areas of worldwide economies. This was especially significant because of the globalised nature of modern-day markets - making it nearly impossible for many Canadian industries to come away unscathed. However, it's also interesting to note that, according to NPR, Canada did not experience a single major bank failure during the recession and has managed to avoid a serious mortgage crisis.
Finally, unemployment has been a regular topic of discussion in the pages of Canadian newspapers and within conversations among concerned residents. When you ask Canadians about the current employment situation, it's very likely that they know someone who has fallen victim to the rise in unemployment. In fact, in a recent online survey this particular fact was backed up, with 66 per cent of respondents saying they know someone who has lost their job in the past 2 years. Adding to these concerns is the fact that 12 per cent of employed survey respondents said they do not feel secure in their job. The unemployment rate reached a high 7.4 per cent in November 2011. Though this figure is far from ideal, it is much better than the U.S. unemployment rate of 8.6 per cent in the same month.
Thus, Canada has indeed been impacted by the global economic recession. Though its key industries do not directly relate to the burst real estate bubble, they are still intrinsically linked with the global financial markets and therefore haven't managed to escape the recession. Unemployment, a common consequence of recessions, has surged during this economic downturn - causing concern among Canadians across the country. Fortunately, however, Canada fared far better during the recession than many other countries, with relatively lower unemployment levels, no major bank failures and a comparatively stable mortgage market.
Peter Rose writes for a digital marketing agency. This article has been commissioned by a client of said agency. This article is not designed to promote, but should be considered professional content.
