Tomer Hazan

Professor: Alakananda Ganguli

Introduction to economics
383-101-DW
Section 10

Summative assessment
Summary of french article:
“Le taux de chômage recule au Québec et à l’échelle canadienne”(July 2021)
In this article Unemployment is discussed through Quebec and other canadian countries. It says
that Quebec received a decrease in unemployment from 6,3% to 6% in July of 2021 and in the
“Région Métropolitaine de Montréal” there is an increase of 2,5% in employment which is (55
000) workers. Due to a removal of restrictions (in terms of Covid) there has been a rise of
employment by 1,7% in Quebec(72 000). In Canada there has been a decrease of
unemployment by 0,4% (7,8%). Employment rose by 1,2%(231 000) after decreasing by
1,4%(275 000) 2 months prior in Canada. Unemployment rate decreased by 3,7%(61 000).
Finally Ontario had a decrease in Unemployment rate of 9,3% in mai to 8,4% in june with an
increase of employment by 117 000.

Analysis
In this article the type of unemployment that is discussed is cyclical unemployment as per
definition it is due to a decrease in aggregate expenditures. The decrease caused previously by
covid is now starting to slowly vanish as people are either regaining their jobs or finding new
ones which is frictional unemployment. The rate of unemployment is described as being 6% as
of july 2021 and employment increasing by 1,7%(72 000) will help us find unemployment by
1 ,7 72 000
finding the employment so: = → EMP=4 235 294 since Unemployment is 6%;
100 Emp
94 1
100 %−6 % →94 %( EMP)→ = → X =45 056 → 45 056 ⋅6=270 338 →UNEP=270 338
4 235 294 X
So unemployment in Quebec represents 270 338 people( 6%). The labour force would then be:
LF=94 %+6 %=4 235 294 +270 338→ LF=4 505 632. In this article it is hard to say what the
participation rate is as we do not know the extent of the adult population so for this extract the
use of the datatable and the graphs would help determine the participation rate.
(they are not developing in the same timeline.)
 Unemployment rate for Ages 15 years and over
Percentage Percentage Percentage Percentage Percentage
Geography 2016 2017 2018 2019 2020 Both sexes
Canada 7.1 6.4 5.9 5.7 9.5
Ontario 6.6 6 5.7 5.6 9.6
2016 2017 2018 2019 2020 Males
Canada 7.7 6.8 6.2 6.1 9.6
Ontario 6.8 6.3 5.7 5.8 9.2
2016 2017 2018 2019 2020 Females
Canada 6.3 5.9 5.6 5.3 9.4
Ontario 6.3 5.8 5.7 5.5 10.0

Canada
Employment
Sex Age group 2016 2017 2018 2019 2020
 Persons
Both sexes 15 years + 17,911.60 18,281.10 18,568.00 18,985.60 17,999.20

Participation
rates(%) 65.6 65.6 65.3 65.6 64.1

In this Datatable we can determine the adult population included in the participation rate as we
have the participation rates and the amount of employment. For example, we shall take the year
2020 for both sexes In canada: UR= 9,5% therefore ER=90,5%(100%-9,5%) if the employment
population is 17 999.20 we can find the adult population(A.P) through a small calculation:
90 ,5 % 65 , 6 %
EMP=17999 ,20 /ER=90 , 5 % /PR=65 , 6 % so : = → A . P=13 046 ,93 .
17999 , 20 A. P
In summary, there are many developments in unemployment after the beginning of Covid. I was
able to determine the type of unemployment, the amount of people unemployed and the
participation population resulting from all the changes in the economy.

English article Summary:

“Not just the pandemic: Why housing prices are skyrocketing, and what could come next”(June
10th 2021)
This article analyzes the housing crisis that hit our country, presently. With the main reasons
being the low interest and covid-19, the CREA reported, in 2021, that the average house sale
was higher by 31,6% compared to the results of the previous year. According to Nathanel
Lauster, the two factors presented above, explained the rise in supply and demand of money for
future projects, such as investing for the first time in the real estate field. However, it was
actually discovered that the housing in some provinces, such as Toronto and Vancouver, were
barely affordable. Another problem found was the lack of housing, especially since there are
many immigrants coming to Canada and some consequences related to it would be that citizens
have to move further away from where they initially wanted to buy. Solutions were then
proposed to solve this problem. First of all, the different types of government decided to
establish some new taxes to discourage the housing crisis, such as the Foreign buyers tax and
the vacancy-tax, in an attempt to lower the cost of housing and increase the supply.

Analysis
In this article we have a simple market where the buyers are people looking for homes and the
sellers are homeowners and contractors, the products of service are houses and the price is
increasing. This means that there is a high demand for houses ( 31,6% higher than last year)
but a low supply of them. This goes directly against the law of demand as: 1. The market-size
effect requires prices to go down in order for customers to want the product, 2. The income
effect requires prices to drop in order to decrease purchasing power which will then increase the
income of others. 3. The substitution effect requires that prices drop down in order for the
product to become cheap. What is happening is that previously the houses were at low interest
which then caused a mass purchasing amongst people wanting homes, which then put the
supply in a decrease therefore increasing the demand.

In summary,the pandemic has changed the house pricing like never before, changes such as
housing prices going up by 31,6% as the demand only increase and the supply decreases
leaving many people out of options.
 Works cited
English article
https://www.ctvnews.ca/canada/not-just-the-pandemic-why-housing-prices-are-skyrocketing-
and-what-could-come-next-1.5464194

French article
https://www.journaldemontreal.com/2021/07/09/le-taux-de-chomage-recule-au-quebec-et-a-
lechelle-canadienne

Datatable
https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1410032702&pickMembers
%5B0%5D=4.1&cubeTimeFrame.startYear=2016&cubeTimeFrame.endYear=2020&referenceP
eriods=20160101%2C20200101

https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1410032701