CANADA / SALARY

Introduction

Canada is a country found in North America. The country occupies 9.98 million square meters making it the second-largest country globally. It has ten provinces and three other territories and uses the Canadian dollar as its currency. The economy of Canada is massive and is highly dominated by the service industry, which hires most of the employees. The country is also ranked third when it comes to countries with the highest natural resources.

The guide will help you learn about Canada's economy and some economic sectors resulting in high economic growth.

GDP

Canada is ranked as number nine in terms of the nominal GDP and the fifteenth largest for GDP in purchasing power parity. Canada's nominal GDP estimate for the year 2021 is approximately $ 1.88 trillion, and the GDP in terms of purchasing power parity is $ 1.97 trillion.

The GDP growth has had downward trend reports from the World Economic Outlook database show that the GDP for 2018 and 2019 was 2.0% and 1.7 %. The year 2020 shows the worst GDP drop as it was estimated to have a – 7.1% drop. However, for 2021, the GDP growth is estimated to rise by 6.1 %, and experts forecast the GDP growth will continue to rise.

The GDP nominal per capita in October 2021 was $ 49,222, thus giving it a rank of number 18 globally, while the GDP per capita in terms of PPP was $ 57,713, thus being ranked as number twenty globally.

The highest GDP as per the various economic sectors shows the service sector making the highest contribution with 70.2% Followed by the industry sector with 28.2% and lastly the agriculture sector with 1.6%.

Economic sector

The main economic sectors in Canada are agricultural, service, manufacturing, energy, and mining.

·       Service sector

The service sector employs the largest number of employees in Canada, thus resulting in the country's GDP of about seventy percent. The retail sector employs most of the people where the businesses are mostly at the malls. The business sector, which includes real estate, financial services, and communication industries, is second. Other service sectors contributing to the high country economy include the health, tourism, and the education sector.

·       Manufacturing sector

The manufacturing sector has also contributed to Canada's economic growth. In the 1940s, the manufacturing sector accounted for about 29 percent. However, over the years, the GDP growth of the manufacturing sector has been falling. In the year 2020, the GDP growth was at 10.37 percent.

·       Agriculture

Canada is popularly known for the production of wheat and grains. Due to the high production, the country is a major exporter to other countries. 

·       Mining

Exporting the minerals produced has contributed hugely to Canada's economy. The country is ranked as number four globally for the production of platinum and titanium. 

·       Electricity

The electricity sector has played a significant role in the economic sector and Canadian politics. The government plays a major role in ensuring that power is effectively distributed and transmitted. In 2021 Canada was the second-largest producer of electricity after it accounted for 59 percent of electric generation. China was ranked as number one.

Employment Sector

1.    Employment

The level of the labor force in September 2021 was around 20.3 million, representing about 59.1 percent of the country's population. The average gross salary is about $ 1,042 per week. The service sector employs the largest portion. Some jobs with the highest demand in Canada include administrative assistants, web developers, information technology specialists, digital marketing specialists, scientists, and data analysts.

2.    Unemployment

Canada statistics show that in January 2021, the number of unemployed people was about 9.4 percent. Canada's highest unemployment rate was experienced between 2008 and 2009 as the country was going through an economic recession. The unemployment rate increased by 8.3 percent, which accounted for 1.52 million unemployed persons. When a country is undergoing an economic recession, most companies don't wish to expand, resulting in high levels of unemployment.

Exports and Imports

Exports

Canada states of trade 2021 show that Canada exports amounted to $548 billion. Canada's main exports include plastics, natural gas, aluminum, crude petroleum, fertilizers, timber, telecommunication, motor vehicles, and industrial machinery. The main export partners include Mexico, Japan, European Unions, United States and China. The highest exporter partner is the United States, with 76.2 percent.

Imports

Canada's main import partners include Mexico, Japan, United States, European Union, and China. In 2021 the country's imports were approximately $ 453 billion. Canada imports durable consumer goods, electricity, machinery and equipment, and motor vehicles parts.

Inflation

In the year 2021, Canada's inflation was 0.6 percent. Over the years, Canada's inflation has been decreasing. The main reason attributing to the downward trend can be based on the following explanation.  You find that when the oil and gas prices drop in the country, the housing prices go up, hence controlling the inflation rate.

The bank of Canada has a primary role in conducting a monetary policy to ensure that the inflation rate is stable. The monetary report is issued eight times a year. The bank has to come up with terms of how to keep inflation low and stable. The right inflation is ideal as the focus is to reduce the unemployment rates and improve the country's standard of living. One main strategy of how Canada keeps the inflation rate is by increasing the housing price and reducing oil and gas prices.

Conclusion

Canada has a highly developed mixed economy. It has a huge economy, thus being ranked as number nine globally. The service sector makes the highest contribution to the growth of the country's GDP. The main industries that have led to the high growth include wood and paper, petroleum, natural gas, fish products, transportation equipment, and chemicals. Canada is a great exporter, which has also contributed to the continuous rise of the country's economy.