Dwindling Labour Supply Squeezes Employment Growth: Canada’s Two-Year Household Income and Employment Outlook

The Conference Board of Canada, 14 pages, July 19, 2022
Issue Briefing
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This quarterly economic forecast presents the medium-term outlook for the Canadian economy. This release focuses on household income and employment. For an overview of all major components of the economy, go to the Canadian Outlook main page.

Document Highlights

  • Tightening labour supply will constrain employment growth over the coming quarters.
  • Having now fully recovered from their pandemic-induced drop, labour force participation rates will gradually decline because of Canada’s population aging.
  • Robust labour demand and tight supply will keep the unemployment rate low this year and next.
  • Expansion of the Temporary Foreign Worker Program is offering firms some targeted relief, but the implications for the economy are mixed.
  • Recent declines in labour productivity are a reminder that weak productivity growth remains a key challenge for Canada.

Table of Contents

Key Findings
Household Income and Employment Snapshot
Pandemic Recovery Causes Labour Shortages to Intensify
Government Expands Access to Temporary Foreign Workers
Soaring Inflation Heightens Need to Address Canada’s Productivity Problem

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