.C from 1991 to 2008, we present econometric evidence that supports that changes in state-level unemployment rates are linked … causality going from mismatches and housing conditions to unemployment rates. The numerical estimates imply that the structural … unemployment rate in 2010 was about 1¾ percentage points higher than before the onset of the housing market meltdown at end-2006 …

-term unemployment rate (which would raise equilibrium unemployment rates). However, over the medium term, we expect Canada's potential …