July's surprising 39,400 decline in employment looks bad but, since it mainly reflects less hiring of younger workers this summer, the Bank of Canada should view it as a temporary shock that will be unwound after the Labour Day holiday. Nevertheless, the modest gains in prime-aged employment over the past six months supports our view that the economy has been underperforming its potential growth rate of 2%.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services