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Thursday, February 11, 2010

"Long-term unemployment in Canada and the US"

Stephen Gordon updates a post on long-term unemployment in the U.S. and "unpleasant parallels to Canada's experience of the 1990's":

Long-term unemployment in Canada and the US, by Stephen Gordon: Last September, I wrote this, in a post where I made graphs comparing the number of long-term unemployed workers in Canada and the US:

The more I look at the US, the more I see unpleasant parallels to Canada's experience of the 1990's - what Pierre Fortin called The Great Canadian Slump. Even after we emerged from the worst of the 1990-91 recession, we still had to deal with a large current account deficit, out-of-control government deficits and significant NAFTA-induced sectoral shifts. The outlook for the US is depressingly similar, although their sectoral shifts are associated with re-allocating resources away from construction and finance.

Here are the updated graphs for the long-termed unemployed (not seasonally adjusted) in Canada and the US:

Worthwhile1

Worthwhile2

Five months later, I think we can now agree that the US will be extremely lucky if its experience in the 2010s mirrors ours of the 1990s.

    Posted by on Thursday, February 11, 2010 at 12:11 AM in Economics, Unemployment | Permalink  Comments (6)

          


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