Business Brief: Why this job market complicates rate decisions
The Bank of Canada is grappling with a complex job market that is affecting its rate decisions. A recent speech highlighted a structural shift in the labor market, leading to a challenging environment for job seekers. Factors such as economic uncertainty and an aging workforce are contributing to a low-hire, low-fire situation.
- ▪The unemployment rate in Canada has risen from about 5 percent in late 2022 to just above 7 percent by fall 2025.
- ▪Employers are hesitant to hire due to economic uncertainty and an aging population, leading to a stagnant workforce.
- ▪The share of unemployed individuals looking for work for over six months is at its highest since the early 2000s.
Opening excerpt (first ~120 words) tap to expand
ShareSave for laterPlease log in to bookmark this story.Log InCreate Free AccountGood morning. The job market is on the Bank of Canada’s mind. But, spoiler alert: A speech to policy-makers and researchers at a Quebec think tank did not clear up the central bank’s decision-making ahead of future rate decisions. This complex labour equation is in focus today, along with a buggy summer forecast. Up firstIn the newsOil and gas: Ksi Lisims reaches an LNG deal with Germany’s state-owned utility SEFE.Trade: Washington’s top trade official says he sees a path to preferential tariff rates in North America if Canada and Mexico co-operate on external tariffs on other countries.
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Excerpt limited to ~120 words for fair-use compliance. The full article is at The Globe and Mail.
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