All G-7 countries have seen a drop in the total fertility rate and an increase in life expectancy. However, the situation in Canada is more favourable when compared with that of Germany, Italy and Japan. See J. Boivin, “Aging Gracefully: Canada’s Inevitable Demographic Shift” (speech to the Economic Club of Canada, 4 April 2012).
6  Prolonged unemployment can lead to a loss of human capital, as workers’ skills deteriorate, making it difficult to re-enter the work force. These persistent effects could ultimately have a negative effect on potential output growth. However, it is not yet clear how large this effect will be.