Canada’s economy is one among the world’s biggest and most stable. The Canadian economy closely looks like that of its neighbour to the South.
Aside from having similar patterns of production and living standards, Canada also adopts a market-oriented financial system that mixes private enterprise with government regulation.
The Canadian economy has experienced massive growth in its manufacturing, mining, and service sectors since after the Second World War, propelling the economy from being a largely agricultural one to becoming one of the most highly industrialized and urbanized economies in the world.
The economic process in Canada has been so effective and consistent that today it’s the 10th largest economy within the world supported GDP.
Unlike most of its peers, Canada is taken into account to be distinct for having a sophisticated economy as its primary sector, namely the logging and oil industries, is one among the foremost important elements of the economy.
Additional value is also placed on Canada’s manufacturing industry which makes it highly important, particularly the car industry, with low labor costs and a comprehensive healthcare and Social Security system attracting major automobile companies from the US and Japan to start up manufacturing facilities in Canada.
Being among the G7 group of leading industrial countries, Canada enjoys a high standard of living, excellent public infrastructure, plus highly educated and skilled labor force, a world-class educational system, and a well-deserved reputation as a successful trading nation.
Canada as a nation is known for its tolerance, respect for human rights, and social justice. Internationally, Canada features a strong record of standing against discrimination and injustice.
Respect for human rights and private freedom is deeply held, and both are constitutionally inculcated in Canada’s Charter of Rights and Freedoms.
With an excellent history of immigration, Canada is extremely welcoming with a multicultural society. Canada welcomes and encourages the talents, skills, and enthusiasm of newcomers to still grow and contribute to its economy.
Canada has today become home to immigrants from every part of the planet, and it continues to draw in people from everywhere in the world who want to migrate to Canada and live there.
Types of Canadian Economy
The Canadian economy is grouped into 3 main industries which are:
The Service industries provide citizens with thousands of unique jobs in various areas like transportation, retail services, education, construction, banking, communications, health care, tourism, and government. creating the opportunity that 75% of working Canadians now have jobs in commission industries.
The manufacturing industries make products to sell in Canada and around the world. Products manufactured by these industries include clothing, aerospace technology, machinery, automobiles, technology equipment, food, paper, and lots of other goods. Canada’s largest international trading partner is the United States.
Natural Resources Industries
The natural resources industries include agriculture, fishing, forestry, mining, and energy. These industries have played a crucial part in the country’s history and development.
Today, leading to the economy of many areas of the country still depends on developing natural resources, and a great percentage of commodities exported from Canada are natural resources.
Canada’s Labor Force
The Canadian labor force consists of over 19 million people. This labor force is divided among the various industries in the country. The latest data from 2019 shows that 1.45% worked in Agriculture,19.48% in industries, and 79.07% in other industries.
Despite being the 10th largest labor force participation rate in the world, Canada faces the problem of an aging labor force. In 2019, the average age of the Canadian labor force was 40.8 years old.
By 2019, 17.9 percent of the population was above the age of sixty-five, 66.1 percent were between the ages of fifteen and sixty-four while 16 percent were aged fourteen and below, with a population growth rate of 1.4 percent from 2018 to 2019.
Canada has a population of 34 million people living in the country. Most of the Canadian citizens live in the city.
Canada’s Unemployment Rate
The Canadian unemployment rate increased to 8.2 percent in May of 2021 from 8.1 in the previous month, in line with market expectations.
Employment fell by 68,000 (-0.4%), with almost all of the decline in part-time work (-54,000; -1.6%).
The unemployment rate among visible minority Canadians aged 15 to 69 rose from 1.5 percentage points to 11.4% (not seasonally adjusted).
Long-term unemployment, the number of people unemployed for 27 weeks or more, held relatively steady at 478,000.
The labor force participation rate decreased to 64.6 percent from 64.9 percent in the previous month, the lowest since August 2020.
Meanwhile, the youth unemployment rate fell to 15.9 percent in May from 16.1 percent in the previous month.
Canada’s economy depends on international trade. 59 percent of its economy is predicated on trade. Canada’s top four exports were motor vehicles, energy products, metals and minerals, and consumer goods.
The Canadian government supports the expansion of foreign trade through international treaties and agreements. In 1989, Canada and therefore the US signed the trade agreement (FTA) which eliminated vast tariffs and taxes on goods that were traded between the two nations. As a result, trade increased by 50 percent before NAFTA