Chapter 5 Economic Indicators

Source: http://www.gravenhurstbanner.com/article/129257

Summary
In the business world, everywhere in the world is expected to have a recession. However, in Muskoka is unexpectedly doing pretty well. The unemployment rate has dropped more than two per cent between January 2008 and January 2009. This town in the central of Ontario has an unemployment rate of 5.4%. Ontario’s unemployment average is about 7%. The Gravenhurst economic development officer, Lance Sherk, expects the unemployment rate to decrease more because there is large number of building projects in process and is in need for workers. In addition, there would be a job fair held at the local sports stadium. It features 43 employers. Some employers are hiring about 25 or more positions.

Connection
The main connection between the textbook and this article is unemployment rate. To be unemployed, one must be out of work, but also must be actively looking for work in the last 4 weeks. The unemployment rate is defined as the percentage of the labour force that is not working yet is still looking for work. People who are available to work are also classified as unemployed. To calculate unemployment rate, use this formula:

Unemployment rate = Unemployed/ Labour force


In this article, it states that in Muskoka, Ontario, the unemployment rate is at 5.4%. One of the main reasons why the unemployment rate is low because there are many building projects which helps the local economy.

Reflection
I think that this article gives a great example to tackle the current recession. If governments invest more in big projects like infrastructure building, this would create more job opportunities. If there are more job openings for the unemployed that means consumers have more confidence in spending. As a result, the economy would be going up. I believe that our city of Vancouver should also follow Muskoka’s way to turn the economy around. I believe extending our Skytrain to Coquitlam is a great way to help the economy. Moreover, it would be a greener way of transportation from Coquitlam to downtown Vancouver. Instead of building a new bridge, we can expand bridges for cyclists and pedestrians. That way, it would help our city promote as an environmental friendly city.