Employment rates, Canada and the United States

Canada reaches a record high employment rate

• In 2003, Canada's employment rate reached a record 63.0% and surpassed the United States (62.3%) for the first time in over two decades.
• Historically, both labour markets have generally followed similar employment rate trends, but differences emerged in the 1990s and early 2000s. From 1989 to 1993, the Canadian economy shrank more than the U.S. economy: the gross domestic product fell 3.0% in Canada, twice the drop in the United States. At the same time, the Canadian employment rate fell 4.1 percentage points, while the American rate declined by 1.3 percentage points.
• In contrast, from the fourth quarter of 2000 to the third quarter of 2001, the U.S. economy suffered a downturn (-0.6%) while the Canadian economy expanded slightly (+0.1%). As both economies began to pick up in the fourth quarter of 2001, Canada's growth was much stronger. While Canada's employment rate continued on an upward trend, the U.S. rate has seen a steady decline since reaching its record high of 64.4% in 2000.

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