How did the Great Depression affect Canadian unemployment rates?

The Great Depression significantly increased Canadian unemployment rates, with nearly 30% of the labour force unemployed by 1933.

The Great Depression, which began in 1929 and lasted until the late 1930s, had a profound impact on Canada's economy, particularly on unemployment rates. The economic downturn led to a sharp decline in demand for Canadian exports, such as wheat and other raw materials. This, in turn, resulted in widespread job losses, particularly in the agricultural and manufacturing sectors. By 1933, nearly one-third of Canada's labour force was unemployed, a rate that was among the highest in the world.

The Depression also led to a significant increase in underemployment. Many of those who were able to keep their jobs faced reduced hours or wages. This was particularly true in industries such as mining and logging, which were heavily dependent on export markets. The lack of full-time, stable employment meant that many Canadians struggled to make ends meet, leading to increased levels of poverty and hardship.

The high unemployment rates also had significant social and political implications. The lack of job opportunities led to increased levels of migration, both within Canada and to other countries, as people searched for work. This was particularly true for young men, many of whom left their homes to find employment elsewhere. The high levels of unemployment and underemployment also led to increased labour unrest and contributed to the rise of new political movements, such as the Co-operative Commonwealth Federation (CCF) in Saskatchewan.

The government's response to the unemployment crisis was initially limited. The federal government, under the leadership of Prime Minister R.B. Bennett, initially believed that the Depression was a temporary downturn and that the economy would soon recover. However, as the Depression deepened and unemployment rates continued to rise, the government was forced to take more drastic measures. This included the introduction of relief programmes, such as the Unemployment Relief Act, which provided financial assistance to those who were out of work. Despite these measures, the unemployment rate remained high throughout the 1930s, only beginning to decline with the onset of World War II.