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As Bank of Canada pauses rate hikes, economists keeping close eye on labour market - National | Globalnews.ca

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As Bank of Canada pauses rate hikes, economists keeping close eye on labour market

As businesses and consumers pull back on spending, economists expect unemployment to rise, though by how much is up for debate as the labour market has remained strong despite the central bank’s tightening cycle.Labour groups have voiced concerns about the Bank of Canada’s rate hikes in recent months, with Unifor president Lana Payne previously accusing the central bank of waging war on the working class.

However, some economists are cautiously optimistic that employment may prove to be somewhat resilient to the slowdown, given that unemployment is currently near historical lows.Cost of borrowing money goes up as the Bank of Canada increases its benchmark interest rate again

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