Canadian Business and Labour History

Canadian Business and Labour History

Like many other economies, Canada has undergone tremendous changes and transitions over the years. Starting out as a hunting, trading and farming society, Canada has since gone on to establish itself as a major economic powerhouse. These changes have had numerous implications on most if not all areas and sectors of society. From the arrival of Europeans back in the 16^th century to contemporary Canada, one can single out a series of events that have shaped and defined the Canadian economy over the years. Fishing and far trade might have been the core aspects of the economy during the late 19^th century, however, rapid urbanization, technological developments as well as industrialization have since become central to the economy. It is, however, important to note the fact that natural resources continue to underpin Canada’s economy. This write-up, therefore, is an exploration of the Canadian economy since the late 19^th century. 

As one of the industrialized and most advanced economies in the world, Canada has managed to grow and advance owing to stronger productivity. Much of its economic changes began around the Second World War when Canada played a crucial in supplying material needs to the Allied Nations. Over the course of the war, therefore, businesses thrived, unemployment rates were virtually non-existent and most importantly the overall economy was booming. This also meant that government interventions in the form of regulation would also increase even as it became clear that the global market dynamics were changing. 

Notably, however, is the fact that Canada’s labour market transition from manufacturing to services has taken a gradual trend as compared to its counterparts such as the United States and the United Kingdom. To a great extent, as previously mentioned, Canada relied on natural resource exports and as such most of its businesses and labour dynamics were influenced and shaped by manufacturing and associated processes. According to Belshaw (2016), Canada’s reliance on the so-called staples creates major vulnerabilities whose impacts and ramifications have affected and continue to affect the country’s economy. This reliance was further broadened with rapid transport and communication developments that characterised the 1950s, 60s, 70s, and 80s. 

With major shifts taking shape during the 1980s and 1990s, Canada had to rethink its economy leading to the major changes that would come about by the 2000s. From an economic perspective, the 2000s were much more of a boom for the Canadian economy as was made evident from the robust growth that was realized around that time. The country realized tremendous increases in their nominal gross domestic product. It is of great significance to note the fact that this economic growth coincided with globalization which meant that global demand increased tremendously (Hirshhorn, 2011). For a country whose economy had been built on exports and foreign markets, this precipitated major growth in the country’s gross domestic product. Canada’s rapid economic rise also meant that it received tremendous interest from the international community resulting in increased foreign direct investments. 

With these changes, Canada would go on to realize positive terms of trade that would strengthen the country’s currency. From the labour market perspective, the constantly rising gross domestic product meant that its labour market went on to perform considerably well. The region would go on to experience considerably high employment rates. For businesses, success and growth since the 1960s was largely tied to manufacturing and natural resource utilization. The rapid changes in market dynamics, however, meant that businesses had to deal with higher operational costs. 

For starters, the price of labour increased and as such Canadian businesses, had to contend with increasing competition from emerging markets such as India and China. The transition from manufacturing to the service industry even as the economy began to expand resulting in major upheavals in the labour market as well as business operations. For the working classes, economic uncertainty became the norm even as unemployment and inflation ravaged the Canadian economy. Owners of capital, on the other hand, got to enjoy all the spoils that came with the expanding economy and increased demand from foreign markets following intensified globalization (Hirshhorn, 2011). 

As Canada continues to tread in the contemporary global market economy that is highly uncertain and dynamic, it is clear that major shifts and realignments are likely to occur. With the global demand and supply chains having to be redefined by the recent pandemic, labour markets and businesses are bound to take a hit before normalcy returns. Unemployment rates are expected to fall with most businesses likely to resume full operations in a year or two. Luckily for Canada, its natural resources continue to play a crucial role when it comes to cushioning the country from unprecedented economic upheavals. The fundamental takeaway from this exercise is the reality of the major changes that the Canadian economy has undergone in less than a century and moving forward, the country should focus on diversifying its economy. 

References

Belshaw, J. D. (2016). Canadian history: post-confederation. Campus Manitoba. 

Hirshhorn, R. (2011). Impacts of structural changes in the Canadian economy.