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A curated resource of recent research on trends shaping Canada's labour market.

Assessing labour market slack for monetary policy. Ottawa: Bank of Canada.

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Key Takeaway
Canadian labour market concerns include long-term unemployment, slow recovery in unemployment rates among those 55+ and declining participation rates for non-university educated workers.

 

This research explores Canada’s recovery and the indicators used to evaluate labour market health.

The authors constructed an Expanded Labour Market Indicator to evaluate the various labour market slack measures and their concordances. COVID-19 has disrupted the degree of concordance between indicators — with individual measures sending mixed messages about the current health of the labour market.

The authors propose a framework to assess the labour market among three dimensions — job characteristics, labour market inclusiveness and overall labour market conditions — to provide a more comprehensive view and better capture labour market health.

Using this framework, they identify three areas of concern:

1) long-term unemployment,

2) slow recovery in unemployment rates among those 55+

3) declining participation rates in non-university educated workers

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