Divergence in the Canadian and US Labour Markets

Abstract

Comparisons between Canada and the United States are of interest to many Canadians, accustomed to regularly comparing many aspects of life with their neighbours to the south. Because the United States is viewed by many as the world's leading economy, Canadians and others around the world will often make comparisons to the economic benchmarks of the United States. One particular aspect of Canada-US economic comparisons that receives much attention are Canada-US labour market comparisons. A great deal of concern was expressed in the 1990s about the gap that developed between the Canadian and US labour markets especially in the early 1990s, when the Canadian economy experienced a more severe recession than the US economy. This paper will review the continuing divergent patterns in the two labour markets, including a general recovery in Canada's relative labour-market performance in more recent years, and the detailed sectoral, age, and regional developments that underlie that recovery.