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HomeMy WebLinkAboutThe Citizen, 1988-10-05, Page 6PAGE 6. THE CITIZEN, WEDNESDAY, OCTOBER 5, 1988. The International Scene Who is really unemployed? BY RAYMOND CANON Each week I get a two page list of economic indicators which tell me what is going on in each of the major industrial nations, including Canada. There are a number of important ones that 1 look at. including the growth rates of the money supply, the current account balances and the trade balances but the two that really catch my attention are the inflation figures as well as the number of unem­ ployed in each country. Inflation I will talk about later but the rate of unemployment in Canada and elsewhere is one that really attracts my attention since it is interesting to see just how many people are working and how many are not. However, 1 would like to suggest that you take almost any figure on unemployment that you see with the proverbial grain of salt since there are few economic statistics that are more misleading. For openers each country has what is called the underground or black economy which concerns those jobs which are not recorded for some reason or another. These are people whogooutand find work but do not declare their income to any tax authorities so that they get to keep all the money that they earn. We have had cleaning ladies at our house who would not under any circumstances take any kind of cheque; it was cash or nothing at all. You and I both know why this is so but this is a good example of what I mean by the black economy. Nomination deadline nears We are happy to WELCOME #6 Mike Vincent Rightwing Starting his fifth season of J r D Hockey, Mike is a hard working Forward who gives his all every shift. A valuable defensive winger who excels at penalty killing 'Vinny" was named an assistant Cap­ tain with the 88-89 Bulls. Presently Mike is employed by Royal Homes Ltd in Wingham THIS PLAYER PROFILE IS BROUGHT TO YOU BY 0ct.20 The deadline for those submitt­ ing their names to run for municipal office is quickly ap­ proaching. Those seeking office have until 5 p.m. Monday, Oct. 17tosubmit their signed nomination papers. All area municipalities have placed advertisments in this week’s paper giving details about the nomina­ tion process. ANNOUNCING FAffl 1988/89 BRUSSELS BULLS Let’s take a look at Spain. According to my figures the rate of unemployment is 20.1 percent which in any economist’s terms would signify a full-fledged de­ pression. However, you are going to look in vain for any real protest by Spanish workers over the lack of jobs to be had. You may ask why and it doesn’t take long to discover the answer. There are no less than three million people or 29.7 per centofthe working population who are believed to be working without declaring their income to the tax collector. In the southern part of the country in such provinces as Andalusia, Estremadura and Cas­ tile, it is calculated that over 30 per cent of the workers are employed in jobs that do not show up in any statistics except the one that I am giving you right now. Is it any wonder that you seldom hear of Spaniards starving or going on strike? They don’t want to call attention to their clandestine activities. Another thing to keep in mind is that in most countries it is literally impossible to get the rate of unemploymentdown tozero. Some people who might like to work are for one reason or another unsuited for the jobs that are being offered and therefore cannot find employ­ ment even in the midst of a labour shortage. Others have been laid off for one reason or another and are, in effect, between jobs. Thus, we have to get to the questions of what constitutes full employment in any country. In Canada, which is a big country and where job mobility is not what it should be, economists consider the figure to be about five per cent. Since the current rate is 7.5 per cent, this means that we have a true rate of about 2.5 per cent. In a country such as Switzerland which is muchsmallerand which has a widespread practice of exporting or importing foreign workers as the need arises or diminishes, the full employment rate is very close to zero. It is, therefore, not surprising to learn that the current number of benjamins COMING BRUSSELS 887-9740 Nov.l Canada people unemployed in that country is so low as to almost zero. This brings us to another point. Each country has a different way in calculatingjust who is working and who is not. For this reason a figure of, say, six per cent in two countries will mean different things. In Canada we would be quite happy with that figure; in some other country it would mean a higher level of unemployment. You should not really read too much into any comparison in rates of unemployment. As I indicated above with Spain, the fact that so many people are working in the underground or black economy means that, in spite of the 20 per cent official figure, there may not be many more Spaniards really out of work than in Canada with its 7.5 per cent. Thus, when a person says that he or she cannot find work, there may be more there than meets the eye. Don’t be late! Canada Savings Bonds have an earlier date. This year the Canada Savings Bond sales period is earlier-from October 20 to November 1. Buy your new bonds wherever you bank or invest starting October 20. You may date your payment November 1, the day the new bonds start earning interest. Safe and secure. Canada Savings Bonds are fully guaranteed by the Government of Canada. They never fall in value. Cashable anytime. Canada Savings Bonds can be cashed at any time. Your money is always available when you need it. Interest rate announced mid-October. The interest rate and purchase limit for the new series will be announced in mid-October. Details will be available wherever Canada Savings Bonds are sold. Don’t be late! Remember, November 1 is the last day you can buy the new bonds at face value. But the bonds may be withdrawn from sale at any time. Letter from the editor Continued from page 4 dominated front pages around the world. Butjust when one is ready to turn in his press card in disgust over the excesses of the media there is a shining example of the other side of this business. I had a chance to see the movie “A World Apart” the other night. It’s the true story of a young teenager and what she goes through because of her parents’ passionate commitment to a cause. It’s 1963 in South Africa and the girl’s father, who would likely have been thrown in jail to be kept there without trial for his support of black independence has fled the country. The teenager’s mother, a jour­ nalist, continues to report the news, and support the blacks fight against apartheid, despite the danger. Finally she is arrested, interrogated and threatened, and kept in solitary confinement with nothing but a Bible. She almost breaks down but survives her 90 days. She goes outside the prison walls long enough to make a phone call for a ride home, only to be arrested again and sent in for another 90 days. A note at the end of the movie says that 20 years after all this, she was assassinated. The journalist showed the good side of the profession, the fight for human rights and freedom in which the free press plays such an important role. The problem is that, opportuni­ ties for such an essential fight only come now and then. In the meantime there must be some­ thing to fill the front pages of the newspapers and the evening tele­ vision news show and there must be something to keep the journa­ lists busy. The devil makes work for idle hands, the old saying goes, and reporters who are idle can create their own stories. Like most things, we have to accept the bad with the good when it comes to journalists. Meet your perfect mate in the Classified Section. Canada Savings Bonds