October 15, 2024

Therefore, the unemployment rate (those actively seeking jobs who are unemployed) went down slightly.

However, employment numbers have not kept pace with the immigration of workers into Canada, so the labour participation rate (the percentage of the working age population in work) continues to be very low.

The impact on wage growth of the general declining of inflation, a slower-growing economy, a decreased labour participation rate, and a relatively high unemployment rate is downward pressure on wages.

There are other reasons for the low participation rate. The (mental, physical, and addiction-related) health crisis of younger workers continues to weigh on their reintroduction to the workplace. The impacts of COVID-19 cannot be overstated at this point.

Younger workers on disability benefits have grown rapidly across the industrialized capitalist world since the pandemic. The effects have been offset by increased immigration, but they risk becoming a forgotten and under-serviced group with inflation eating up health budgets while governments cut social spending growth.