General Labour Affects On The Gross Domestic Product

Canada may be headed into a recession. The economy contracted 0.6% in the first quarter of 2015. The forecast for the year is 2.0%. The central bank cut interest rates from 1.0% to 0.5%. That may only aggravate a housing bubble. The government could spend more, but the debt-to-GDP ratio is an already-high 92%. In this paper I am going to be focusing on general labour and how it coincides with Canada’s economy. So far general labour has been helping the Canadian economy grow and become stronger but for 2015, this has not been the case. The three things focused on in this report are general labour affects on the gross domestic product (GDP), inflation and unemployment. These three things are the base of the Canadian economy. Without these†¦show more content†¦For example, 62% of the job vacancies were in this province. This is bad for GDP because if there is a decline in general a laborer work, it is only a matter of time that Canada’s GDP will also decline due t o the decrease in demand for those workers. Businesses that need general laborer workers will look for workers in other countries. These businesses will be exporting labour to other countries that have the general labour staff they desire and will be contributing to their GDP growth. Since the general laborers are outside Canada, most of our finished goods will be exported into Canada. This will lead to the loss of more jobs and the decline of our GDP. The primary and secondary sectors are increasingly dominated by automation, and the demand for workforce numbers falls in these sectors. This may be good because this will increase productivity and help business save costs. Sadly, the replacement of human works for these automated machines is eliminating more jobs for Canadians. More Canadians will need to find jobs elsewhere, which will only hurt the GDP because those without work will rely on government assistance until they find employment. Inflation Inflation is the rate at which the general level of prices for goods and services is rising and the purchasing power of currency is falling. Canada is currently has an inflation rate of 1%. As Canadians, we have a goal of keeping out inflation rate