Haven’t you heard? The recession’s over! This according to the Bank of Canada, which has waved its magic wand and proclaimed an end to all things R-word.
Something tells me that the record number of unemployed people might disagree with that assessment.
Well, the B of C did say that they still expect people to loose jobs for a while. Their basis for saying that the recession is over is that they expect the economy to start growing again in the next quarter. It’s always like that, it takes a while for companies to regain confidence and start hiring people after a recession. Let’s call it the first step:)
It’s a sham. Why is my company still laying people off? :p
Unemployment is always a lagging indicator, usually it’s the last thing that recovers in a down economy. I have a feeling that we’re at the bottom of the recession. Over? Still a long way from it, but I don’t think it’ll get any worse from here at least.
Well, recession is defined by shrinking of gross production, not by unemployment levels.
Unemployed people might “disagree”, but if the economy’s growing again they’re still wrong. “Recession” as a term of art has a specific meaning, after all.
Besides, the press release does say “long, drawn-out healing process with continued job losses”, so it’s not like the BofC simply ignored unemployment…