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It was announced the US unemployment rate is 6.7% while canada is at 6.9%, i have questions for everyone do you think the USA is lying, do you think the figures are different, will the numbers go down or go up for either of the countries? How about other countries like the UK, Sweden, France, Australia, Germany?
Different countries have different definitions of their labor market. 6.7% of what, exactly?
Because of their climate, Canada has a very large number of seasonal workers, who cannot work in winter because of weather conditions, and it is assumed that they will be on seasonal unemployment during the winter months. For example, more than half of all US road construction workers can work all year, but none can in Canada.
jtur88 is correct, that our unemployment is calculated differently for seasonal work. Also, from wiki:
In Canada, 15-year-olds on surveys to represent the working age population are included in their calculations. In the United States, 15-year-olds are not included in the calculations but this does not play a large role in determining the gap in the unemployment rates. The crux of the matter is that flipping through the want-ads in a newspaper (or on the internet) gets people classified as unemployed in Canada, but not in the United States. A rise in the use of passive job search methods in Canada is important as an explanation for the difference. An analyst with the American Bureau of Labour Statistics stated that if the Canadian unemployment rate were adjusted to U.S. concepts it would be reduced by 1 percentage point.
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