January 11, 2002

We are disappointed that the unemployment rate climbed to 8% in December.

At the same time, given the global economic slowdown that has been in evidence for some months an increase in unemployment was not unexpected.

There is no doubt that the Canadian economy is feeling the effects of a slowing world economy. However, thanks to prudent fiscal and economic policies, Canada is in excellent position to weather the current slowdown.

The Canadian labour market has held up better than in the United States - with employment in Canada remaining essentially flat since September of last year, whereas it has declined by 943,000 or 0.7% in the United States.

And Budget 2001 provided a very strong boost to the economy - with targeted spending measures, and ongoing tax cuts, that are injecting some $26 billion – or 2.4% of GDP – in economic stimulus.

Canadians are also enjoying interest rates that are at 40-year lows - meaning big savings to families renewing mortgages or making big ticket purchases and for businesses seeking loans.

While we are confident the economy is poised to pick up steam, any level unemployment is too high.

We will not be satisfied until every Canadian who wants a job, has one.

We will continue to follow the long term jobs and growth strategy that has positioned us to weather uncertain economic times.