Canada's Jobs Recovery Has Further to Go: Bank of Canada

By Kim Mackrael

 

Canada's labor market still has further to go in its recovery after employment returned to its prepandemic level last month, Bank of Canada Gov. Tiff Macklem said on Thursday.

Speaking with reporters from the International Monetary Fund and World Bank meetings in Washington, D.C., Mr. Macklem said Canada saw strong jobs growth over the summer, including in sectors that he said needed it most, such as high-contact services. However, he said the size of the labor force has grown during the pandemic and the jobs recovery remains uneven.

Returning to the prepandemic employment level "is an important milestone, but it's not the destination," Mr. Macklem said. "It is still the case though that low-wage workers are well below their prepandemic level, whereas other workers have slowly recovered. So there still is some space there."

Statistics Canada reported last week that the Canadian economy added 157,100 jobs in September, a much larger gain than anticipated, bringing the employment level back to where it was before the Covid-19 pandemic began. The unemployment rate fell to 6.9%.

The central bank will provide a more detailed assessment of the labor market when it releases its next monetary policy report on Oct. 27, Mr. Macklem said.

 

Write to Kim Mackrael at [email protected]