Economy at Work

Inflation in 2022 is much higher than expected. This is due to the war in Ukraine, climate impacts on food production, and ongoing supply chain issues. We have data for four months of 2022 and a good understanding of the immediate trends in prices. This means inflation forecasts for 2022 are more reliable now than they were in January.

Canada has a shortage of purpose-built rentals that are affordable for working people. Housing is increasingly out of reach for minimum-wage workers and people who rely on social assistance. Inflation and higher interest rates will only make things worse.

When the pandemic began, Canada was hit with a wave of job losses. The labour market recovered these jobs by the end of 2021. Very quickly, however, economists who had been concerned about pandemic-related unemployment started to raise concerns about the opposite problem – labour shortages.

The financial situation for the provinces improved dramatically over the past year. When added together, 2021 provincial budget forecasts estimated a total deficit of $76 billion for the 2021 fiscal year. But the 2022 provincial budgets revealed that actual deficits for 2021 were only $24 billion.

The Labour Force Survey, carried out monthly by Statistics Canada, recently expanded the demographic data they collect to improve our understanding of employment equity, and specifically to address gaps for Black and racialized workers.