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Lethbridge Herald Newspaper Archives

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Lethbridge Herald, The (Newspaper) - June 17, 1970, Lethbridge, Alberta Figure CoitM Run As High As Billion This Year Canada's Unemployment Problem Will Be ___Wednesday, Juno 17, 1970 THE tETHBRIDGE HERAID 43 By JAMES NELSON OTTAWA (CP) Unem- ployment may cost Canada this year in lost production and the cost at providing welfare payments and job retraining for the un- employed, federal Officials say. This is in addition to pro- duction lost last year, and other expenses of unemploy- ment that can never be covered. It does not begin to put a dollar value on the human costs involved in joh loss and disrupted family life. Nor does it include relief pay- ments by the provinces and municipalities. Canada's .output last year ran to but this was about three per cent below what it might have been if there had been lull employment. For federal gov- ernment purposes, so-called full employment contemplates having about three per cent of the labor force unemployed because of job turnovers and normal seasonal slumps. But in the first four months of 1970, unemployment has run to more than six per cent of the labor force and amounted to 6.7 per cent in March. At mid-April there were people unem- ployed in Canada's labor force of or 6.6 per cent. SOME WITHDRAW These figures do not take into account some oth- ers who are currently enrolled in federally sponsored job training and re-training pro- grams. More than half of them were unemployed before taking training, and about 80 per cent of thorn would be un- employed now if they were not enrolled in the Canada Manpower training program. Another large number of people, perhaps running into a hundred thousand or more, are what the labor economists call "the hidden unem- ployed." They are young peo- ple, retired people and mar- ried women who might be in the labor force looking for jobs if they had not simply withdrawn from the labor force, knowing that jobs are scarce. Officials are unwilling to be quoted on precise estimates of the dollar cost of unemploy- ment, and caution that their figures are mostly guesswork. Canadian labor statistics are insufficiently detailed and hasn't been enough ex- pert study of labor mobility and other factors to be sure of the true costs. However, one economist said in an interview that Can- ada's gross national product last year was three per cent below the country's potential. The country's potential grows by about 5.2 per cent a year, and Finance Minister Edgar Benson said in his March 12 budget he expects real output this year to increase by three per cent. CAN'T BE RECOVERED If his expectation is borne the finance depart- ment says there is no reason to change will be 5.2 per cent short of its poten- tial in 1970. With the gross na- tional product cow running to nearly that means a loss of Such lost production cannot be recovered. Even if Canada draws itself back close to its productive potential, the loss remains. Canada did ran at 99.6 and 93.4 per cent of its potential in 1856 and 1966, when there were unemploy- ment fates of 3.4 and 3.6 per cent, respectively. Officials hesitate to ascribe other expenses to the costs of unemployment. Unemploy- ment insurance, for instance, is a plan designed to ease the impact of unemployment. Made up of contributions from employers, employees, the government and some in- terest earnings, the unemploy- ment insurance fund amounted to more than at the end of 1969. By the end of April this was down to and offi- cials see it falling by perhaps before receipts again exceed benefit pay- ments. Economists don't count this as a cost of high unemploy- ment. It is, rather, a redistri- bution of income taken, from those who still have jobs and given to those who are unem- ployed. If there were full employ- ment and the fund were not needed, the only true saving to the taxpayers would be the or so needed for the unemployment insurance commission's administrative expense. Similarly, the government docs not count its expendi- tures on manpower retraining as an unemployment cost. BENEFITS EMPHASIZED Job training and living al- lowances during training cost in the 12 months ended March 31 this year, for persons enrolled. Tim average cost now has proba- bly risen above per trainee, and while this is a government outlay, the man- power department emphasizes its economic benefits. Eighty per cent of those who'have taken skills training or education upgrading courses have found jobs, earn- ing roughly 15 per cent more than they did before enrolling. A departmental study shows that for each dollar put into the program, the economy gains between and S3. But some economists won- der how long the training program can dam up the numbers of real unemploy- ment. As trainees graduate, after up to a full year's study, they arc increasingly faced with harsh employment pros- pects. One a u t h o r it y said the human costs mount as high unemployment becomes pro- tracted. A worker who is out of a job for several months finds it increasingly difficult to get work. He becomes de- moralized, hears of fewer job opportunities from his friends and former associates, and finds employers less willing to hire a man with a Ions record of unemployment. At mid-April, of the more than 42 per unem- ployed for lour montlis or longer. Hard as it may sound, econ- omists do see some offsetting benefits in a period .of unem- ployment. A firm is inclined to lay off its least-skilled workers first and retain its best. This means an increase in average wages paid, and probably an increase in pro- ductivity among those work- ers who are retained. Statistics on workers shift- ing fr 'ni one industry to an- other .it a time of high unem- ployment to find work, fre- quently for less pay, arc unre- liable. A steel worker, for in- stance, who lakes a tempo- rary job in construction and theii loses it is classified as a construction worker rather than in his Iras vocation. On the other hand, regional differences in unemployment are pcrsi.stent. A sluch for the Economic Council of Canada four years ago showed that Ontario and the Prairies can expect to have lower unem- ployment rates than the na- tional figure, whatever it. is. TABLE RITE RED BRAND The King of Steaks Prices effective Thursday, Friday, Saturday, June 18th, 19th, 20th We reserve he right to limit quantities. Table Rite Young Pork Rib or Butt End Ib. 5c OFF 1-lb- baS PEAS ft CORN FRUIT COCKTAIL BROWN BEANS user JELLO ASST- VARIETIES 3-oz. pkgs. 7 for 77C SPAGHETTI UBBY ,N T.5 Ho, 2 for MUSTARD PICKLES "EINZ SWECT ar LUNCH MEAT INST COFFEE Cross Rib Roast Table Rite Red Brand, Lean and meaty Ib. TABLE RITE GROUND CHUCK BURNS BARBECUE OR REG. WIENERS Red Brand Beef Bulk 32-oz. jar 2-79C BURNS BEEF STEAKETTES BACON MROCK SIDE SAUSAGE BURNS SHAMROCK SIDE 1's. No. 1 lean......10. CAMPFIR6 SKINLESS Ib. COLD MEATS CATELLI Macaroni Dinners USA SLICED, 5 varieties 6-oz. 'JaC for Canada No. 1, firm and fresh ea BOLD DETERGENT RAISIN BREAD LARD BURNS Mb. SPECIAL K KEllOGG'S.....................15-oz. pkg. PEANUTS PLANTERS COCKTAIL 13-oz. CAT FOOD MISS MEW, 4 VAR........6-oz. tins 4 for GAINESBURGERS TEA BAGS NABOB DELUXE 125s JOY DETERGENT SALAD DRESSING LIQUID, 12c OFF, Gt. size MOMS WHIPPED 32-oz. jar TOP VALU PEACHES 14-oz. fins CHUN KING MUSHROOM OR CHICKEN SUAVE NORMAL Chow Mein bonu69c CHUN KING BEEF OR PORK SUAVE NORMAL or HARD TO HOLD Chop Suey....... Hair Spray 69c 2for45c Towels Soya Sauce chuLKr 2 for 45c Zest 75c Baby Oil 69c Kotex 1.69 SOLO COLORED Margarine..................3-ib. Pk3.89c KRAFT Cheese KRAFT MED. BLOCK Cheddar Cheese 95c PHILADELPHIA Cream Cheese 47c TOP VALU CLEAR Lemonade YORK 9, 12-oz. iins 1 ROr 4 varieties 8-oz. Q7t FRASER VALE WHOLE CORN OR Mixed Vegetables......m 59c FRASER VALE FCY. Pkg. 99c TOP VALU CHEESE SLICES'. 3 HI LINER COD FISH STICKS 39c ;