The Recession in Alberta

Question: Discuss about the Report for "The Recession in Alberta". Answer: Chosen Article CBS News (2016). Alberta recession one of the most severe ever, TD Economics report finds https://www.cbc.ca/news/canada/calgary/td-economics-report-alberta-recession-gdp-forecast-1.3684056 The Key Points in the Article The decline in economic growth by double digits of the average of the past four recessions. The contraction of Albertas economy by 6.5% of the previous year. The decrease in the GDP to around 3%. The reduction in the industries economic activities. The reduced prices of products that contribute proportionately to the economy. The Albertas prices of goods and services are rising moderately to sustain the economy. The role of global economic crisis in the recessions in Alberta. The stability of labor market regardless of the current recession in Alberta. Article Summation The CBS News article reported TD Economics reveals how the State has suffered from recessions of the different negative economic magnitudes. The current recession has indicated more economic interference compared to the past recessions that have hit the State. Apart from having the reduction on firms productivity level, it also caused the closure of some industries. The effect destabilizes the labor market by creating the reduced chances of employability workforce to get absorbed in the economy. The statistics on the current recession portrays a decline in GDP of 3% from the past GDP level. The representation of almost 6.5% of the total loss experienced since the recession started in the year 2014. The economic stability has been struggling to retain its average capacity level though the adverse effects have created hurdles on the adjustments on retention. The persistent oil prices plunge in the region is among the contributors of recessions. Though recovery in the prices of oil has strengthened, the wildfires facilitated the effect, with the outcome being worse than the past conditions. The current recession has a projection to last for another two years, indicating a continuous existence of recess in the 21st century. The labor market demand, though, there exists economic hurdles, has maintained its stability of creating jobs. The recession does not negate the states workforce absorption. It portrays milder effects on the labor market compared to the past situations. The projection demonstrates a 1% reduction effect on the new people to get absorbed in the market. By 2017-2018, it is forecasted to have gained on the real GDP by around 2.3%. Thus the highest of the states. Article Material Analysis The recession in the state has implicated economic situations, with prices of the products fluctuating. The Canada dollar has hit the weaker point in the exchange market, making the exports of the country cheaper than before. The imports are relatively expensive to exports, thus, the unbalanced trade effect (Kneebone, 2014). The regions hope on the prices is gloomy with no clear evidence on whether it will catch up soon or not. The major export earning commodity is under economic contraction evident by the fire effect in the northern part of the state. Though the labor market is still stable, the reduced percentage has a decreasing effect on the countrys expenditure. The change in purchasing patterns obviously has closure effect on industries (Jones, 2015). The recession demonstrates unclear economic performance over a period of existence with the creation of cyclical unemployment (DiMatteo et al., 2014). The industry sector is scared, and the prices of valuable products are reduced, therefore, even if the market can employ workers their survival in the firm is not guaranteed (Jones, 2015). There is a high possibility of them losing their jobs due to lay off facilitated by the closure of industries. The economic status with low GDP and weak currency cannot sustain a stable labor market (Cheung et al., 2015). Thus Alberta is at risk. The article is appropriate; it evaluates the economic concepts about the projects then settles on the possibilities which are evidently true. The recess has implications on the economic future of the state. Why Article is of Interest This article is of great interest to me since it talks about severity of the recession in my province. I believe that the information from this article and the facts shown about the failing strategies to solve it will make the policymakers to change tact and this will be of help to me. For example, since I am expecting to be employed once I finish my school yet the recession effect destabilizes the labor market by creating the reduced chances of employability workforce to get absorbed in the economy, I am personally affected and worried about my future. If the government implements the recommendation of the article, a stable GDP will be realized and this will personally help me due to the positive packages attached to a growth of economy such as better pay and stable prices for the commodities. This will boost my living standards and hence the article is of great interest to me. Self- and Social-Interest Tension The article reveals that the strategies used to curb recession in Alberta paint it as a struggling province to maintain labor market stability though not confident on the real GDP. For example, the employment sector is discriminated and only few people benefit at the expense of the social good thus satisfying self-interest. However, non-discriminated labor market and stable GDP would have benefited benefits a whole society. References CBS News (2016). Alberta recession one of the most severe ever, TD Economics report finds https://www.cbc.ca/news/canada/calgary/td-economics-report-alberta-recession-gdp-forecast-1.3684056 Charney, A. H., Hoogasian, A. (2015). Extending the Border Zone to the Entire State of Arizona: Estimated Expenditures and Economic Impact Simulations, 2013-2016. Cheung, C., Granovsky, D., Velasco, G. (2015). Changing Labour Market Participation Since the Great Recession: A Regional Perspective (No. 15-2). DiMatteo, L., Clemens, J., Emes, J. (2014). An Economic and Fiscal Comparison of Alberta and Other North American Energy Producing Provinces and States. Fraser Institute. Jones, S. (2015). Why Inequality Still Matters in a Boom: A Portrait of Interprovincial Disparity in Alberta. Public Policy Governance, 63. Kneebone, R. (2014). The Canadian unemployment ratewith and without Albertas boom. Kneebone, R. D., Gres, M. (2013). Trends, Peaks, and Troughs: National and Regional Employment Cycles in Canada. SPP Research Paper, (6-21).