National Bank highlights the dim prospects in the Canadian jobs market:
- Private sector job growth anemic at just 0.2% in first 8 months of 2024
- Labour force grew 2.0% in same period – largest gap outside of recession
- Private sector job vacancy rate plummets to lowest level since 2016
- CFIB data shows SMEs less concerned about labour shortages
- NBF economists expect unemployment to rise above 7% in next 6 months (from 6.6% currently)
- Public sector hiring in 2024 prevented even worse damage to labour market
The bottom line: Canada’s restrictive monetary policy is taking a heavy toll on the private sector job market. Without strong public sector hiring, the situation would be even more dire. National Bank sees more labour market pain ahead as well.
This article was written by Adam Button at www.forexlive.com.
