CIBC Warns of Widening Cracks in Canadian Economy with Job Decline and Unemployment Rate Increase
Cracks in the Canadian Economy
The recent decline of 2.2K jobs in February has raised concerns about the health of the Canadian economy.
Unemployment Rate Rises to 6.1%
The unemployment rate has climbed to 6.1% from 5.8%, indicating a challenging labor market environment.
Population growth was recorded at 91K, but the labor force only increased by 58K, signaling potential imbalances.
Impact on Hiring Plans
Weakness in sectors like accommodation & food services and retail & wholesale is affecting hiring decisions.
CIBC notes that sluggish consumer spending could further dampen employment prospects.
Future Outlook
GDP is expected to weaken in Q2, leading to concerns about a peak in the unemployment rate at around 6.5%.
CIBC anticipates interest rate cuts in June to stimulate growth and stabilize the labor market.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.