Macroeconomic Unemployment and Structural Unemployment

Pierre Fortin

Canadian Public Policy, 2000, vol. 26, issue s1, 125-130

Abstract: During the 1990s, the lowest sustainable rate of unemployment (LSRU) in Canada declined from the 7.5-to-8% range to perhaps around 6%. Barring an international recession and excessive rigidity on the part of the central bank, Canada could achieve this 6% unemployment level within a few quarters. There is a good persumption that eliminating macroeconomic unemployment and keeping the unemployment rate close to the LSRU level could help reduce structural unemployment.

Date: 2000
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