Canada's unemployment rate falls to lowest since 1976 — via financialpost Canada unemployment
The jobless rate had spent much of 2019 around 5.5 per cent, and there had been no noticeable change in price dynamics, so maybe the limits could be probed by leaving interest rates low for longer. Macklem’s counterpart at the United States Federal Reserve, Jerome Powell, had been running a hot economy ahead of the COVID-19 crisis, and appeared to be successfully narrowing income gaps. It was reasonable to assume the strategy would work in Canada, too.
But rather than marvelling at the power of monetary policy to reshape the labour market, Macklem and his deputies on Governing Council probably read the latest hiring numbers with a sense of apprehension. That’s because an inflationary episode that they initially diagnosed as an issue of supply is now equally a problem over over-stoked demand. The new data guarantee the Bank of Canada will accelerate its march to higher interest rates.
Employment rose by some 73,000 positions in March, Statistics Canada said. The unemployment rate fell from 5.5 per cent in February, which was more than enough to convince most economists that Canada had achieved “full employment,” a theoretical condition where everyone who wants a job can find one.Article content
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