is slowly gaining ground, economists said, but it’s too soon to tell whether Canadians will regain the purchasing power they lost amid sustained price growth.
“We are seeing a bit of a slowdown in broader economic activity. We are starting to see demand for labour, demand for some goods and services, starting to step down,” she said.“That’s all in line with what the bank wants to see, to help cool those inflation pressures.”On Friday, Statistics Canada said the economy was essentially unchanged in April, neither growing nor shrinking.
Meanwhile, Statistics Canada’s latest report on payroll employment found that wage growth got stronger in April, but job vacancies declined.The payroll report provides data at a small lag compared with the labour force survey, but often comes with more nuance, said Kaushik. Signs of slowing in the labour market are consistent with the broader economic slowdown expected in the coming months, said BMO’s Kaushik.
In a report this week, the company said advertised pay has grown faster among low- and mid-paying job postings, mainly in areas where hiring conditions have been tight, including construction and manufacturing. At the same time, total Canadian job postings on Indeed have also slowed, the company said.
The Canadian Federation of Independent Business has also noticed some easing on wage pressures. In a Thursday report, the organization said businesses’ expectations for wage and price increases are cooling.