How Has the Equilibrium Unemployment Rate Evolved in the Administrative Regions of Quebec?

In the past, Quebec’s unemployment rate stayed above 8% for a long time and there were significant differences from one region to another. However, the last decades has brought deep structural changes, especially in terms of demographics and education, which has pushed the unemployment rate down. Changes in the industrial fabric and productivity have also contributed. In order to understand the long-term effect of these changes, this Economic Viewpoint presents regional estimates of structural unemployment. The equilibrium unemployment rate happens when labour supply is essentially equal to employer demand.