Some Firms Struggle to Hire Despite High Unemployment (4 Marks)

With about 1.5 million Canadians looking for work, some employers are swamped with job

applicants, but many employers can't hire enough workers. What has changed in the jobs

market? During the recession, millions of middle-skill, middle-wage jobs disappeared. Now with

the recovery, these people can't find the skilled jobs that they seek and have a hard time

adjusting to lower-skilled work with less pay.

How would an increase in unemployment benefits influence the cost of unemployment?

Would firms that seek to hire more labour find it easier to hire workers?