Relationship Between Unemployment and Inflation in Canada (1984-2024)

Each point shows a year (1984-2024) with its unemployment (x-axis) and inflation (y-axis) rates. Colors represent Bank of Canada (BoC) policy eras: Pre-Targeting (Red), Implementation (Orange), Mature Targeting (Green), and COVID Era (Blue). Quadrants divided at historical averages (8.5% unemployment, 3.5% inflation).

The Phillips curve shows how unemployment and inflation typically move in opposite directions (The Economics Times n.d.). Stagflation is an economy characterized by high inflation, low economic growth and high unemployment. (Kuhl 2023)
Source: Statistics Canada (2025), Rate Inflation (2025), World Bank (2023) Get the data Created with Datawrapper