Canada - Languor Reigns

I am only catching upwards unopen to data, in addition to I wanted to highlight the rather tepid Canadian utilization information for June. There is no sign that the economic scheme is edifice upwards towards "escape velocity"; rather, the chore marketplace seat is decelerating. Given the magnitude of the Canadian housing bubble, that is non what policy makers desire to hear.

The nautical chart at the summit shows the unemployment rate. Unlike the U.S., the participation charge per unit of measurement has been steady, in addition to and thus progress inward reducing the unemployment charge per unit of measurement has stalled. In June 2014, it was 7.1%. By means of comparison, the unemployment charge per unit of measurement commencement striking 7.2% inward July 2011 - most just 3 years earlier. In other words, despite an epic commodities bull marketplace seat in addition to all the same massive condo construction, at that topographic point has been most no reduction of slack inward the labour market.

The nautical chart above, which depicts the aggregate increment charge per unit of measurement of employment, does non inspire confidence inward the outlook.

Above nosotros meet i of the culprits behind sluggish chore increment - structure is no longer creating jobs on a year-over-year basis. Meanwhile, every bit the structure projects inward the pipeline are completed, this sector is probable to popular off a drag on overall utilization growth.

Barring unopen to cast of increment miracle inward the United States, or unopen to pass-through from liberate energy into meat inflation, it is difficult to meet the Bank of Canada doing anything other than sitting on the sidelines for a considerable period.

See Also:

• "Why the Canadian Economy Is Doomed..."

(c) Brian Romanchuk 2014