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.
Subscribe to:
Post Comments (Atom)
7 comments:
I strongly agree that the federal and provincial governments should invest more money into infrastructure and megaprojects. By building or upgrading more roads, buildings, and transportation systems like a light rail, more people will be hired and the unemployment numbers will go down. In a current economic situation where the unemployed are either classified as demand-deficient unemployment or occupational dimension of structural unemployment, more employment will mean more spending in the economy. With more money flowing in the economy, more jobs might be needed in the retail and administration industry, therefore unemployment levels might drop back to what it was originally at, which is around five per cent. Having people work in construction sites not only benefits those who are employed, but the public in general. If more trains or light rails are built connecting the suburbs to the city, it will benefit the whole region as transportation around the region will be more convenient and sustainable. As our infrastructure is aging, it is long overdue for upgrades, especially in the Metro Vancouver area, which is situated in an earthquake prone area. New bridges and buildings have a greater chance in withstanding major earthquakes, so the public will feel safer. Furthermore, improved and new infrastructure could also help the economy, as well. The expansion of sea ports and commercial airports can create a higher capacity of the levels of import and export coming in and out of the region, thereby generating even more jobs and more consumers spending. I profoundly suggest the federal and provincial governments to quickly act to invest more money in infrastructure for a quicker recovery out of the economic downturn.
Jason Tong
I agree with your standpoint on decreasing unemployment rate in Metro Vancouver. From the article I have just read, the amount of job losses in British Columbia was 35,000 out of 129,000 nation-wide in January. The rate of unemployment seems like it will just continue to grow with the passing months. The approach Muskoka took to reduce unemployment provides a way for other governments to deal with their own unemployment problem. However, the city of Vancouver's population is far greater than that of Muskoka, so the same effect may not be achievable.
Jason Choy
Block F
I believe if there is no changes made, it would appear that recession would look even worse. I agree with you on the fact that federal and provincial governments should invest more money into infrastructure and megaprojects. One of the changes I think should be made is more transportation needs to be built. It will benefit the city and it would be much more easier to access and get around transportation. This can even cause less pollution and will have a positive effect towards the community. I think with more buildings, this can improve and strengthen our economy.
K. LAU
blk F
I agree that the government should invest more in building projects. By upgrading or creating new buildings, it will create more jobs, in addition to more jobs created, it will also improve image of the city which will attract businesses to set up locally. Investing in more building projects can also increase employment in businesses that are closely related like building cleaning companies and building inspectors. By providing more jobs to people, it breaks the chain created by the increase in unemployment (People are not spending as much due increase in unemployment-> Companies fire employees due to low demand -> Discourages people to spend money -> etc…) Which will lift the disincentive causing people to not spending money.
For certain if the federal and provincial governments put more money into infrastructure and megaprojects more jobs will be created. Not only does that push us away from umeployment rates, but also more money will be flowing around in the economy. Investing in infrastructures isn't only for the boost of the economy, but better standards of living as well. Roads will be upgraded and more efficient transportation networks will be built, like eco-friendly light rails as mentioned by Jason Tong. This will definitely be a sustainable development for it helps the community in the long run, preventing emissions of Carbon Monoxide; this will be a positve step in both an economical and environmental sense.
K.Ip
Block F
Post a Comment