Unemployment in Canada: The Role of Unemployment Insurance

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Unemployment in Canada: The Role of Unemployment Insurance
This paper will look at unemployment in Canada and the role that unemployment insurance appears to play in contributing to its proliferation; in short, there appears to be a relationship between government intervention and the unemployment rate in Canada. Before delving into the subject at the heart of this paper, I will briefly outline the short-run macroeconomic pressures that impact the natural unemployment rate; there are, as we shall see, inflationary and deflationary pressures which act upon this phenomenon and which are caused by the free market. With this discussion out of the way, I will subsequently look at how changes in economic policy can impact unemployment rates in...

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