Canada experienced rapid growth in its under-30 population and a relatively steady increase in crime and incarceration rates after World War II, confirming the view that crime levels can be explained by demographic trends. Recent concerns, however, have shifted from the effects of the "baby boom" to the "baby bust" and to problems associated with the aging of the Canadian population. Although an aging population has its own unique set of problems, this recent trend should dampen future incarceration rates as the number and proportion of high-risk youth diminish and the number of low-risk males aged 50 and older increases. In the area of unemployment, young males with steady jobs are typically believed to be at much lower risk of criminal behavior and incarceration. Effects of unemployment include various social and psychological disorders, such as child poverty, family breakdown, mental health difficulties, suicide, and rising crime and incarceration rates. The experience of Canada's Correctional Service during recent economic recessions suggests that a relatively strong relationship exists between unemployment and incarceration, and the impact of unemployment is felt most strongly by young people. More research is needed to understand the fundamental social and economic processes at work in Canadian society and to develop effective alternatives to incarceration. 11 footnotes, 1 table, and 2 figures