David Doyle, head of economics at Macquarie, joins BNN Bloomberg to talk about his reaction to the Bank of Canada holding its key rate steady at five per cent.
Subscribe to BNN Bloomberg to watch more videos:
Connect with BNN Bloomberg:
For the latest news visit:
For a full video offering visit BNN Bloomberg:
BNN Bloomberg on Facebook:
BNN Bloomberg on Twitter:
BNN Bloomberg on Instagram:
BNN Bloomberg on LinkedIn:
—
BNN Bloomberg is Canada’s only TV service devoted exclusively to business, finance and the markets….(read more)
BREAKING: Recession News
LEARN MORE ABOUT: Bank Failures
REVEALED: Best Investment During Inflation
HOW TO INVEST IN GOLD: Gold IRA Investing
If unemployment rises more from here, that could signal Canada is already in a recession: Economist
The COVID-19 pandemic has unleashed uncertainty and economic turmoil around the world. Governments and businesses are grappling with the effects of lockdowns, restrictions, and an overall slowdown in economic activity. Canada, too, has not been immune to these challenges. As the nation tries to recover from the impact of the pandemic, economists and analysts are closely monitoring key indicators to assess the health of the economy.
One of the crucial barometers for determining the state of an economy is the unemployment rate. Unemployment is an indicator that reflects the number of people actively seeking employment but unable to find it. When unemployment is high, it suggests a lack of job opportunities and income instability for the population. Conversely, low unemployment indicates a healthy labor market and overall economic prosperity.
However, economists warn that if unemployment rises even further from its current levels in Canada, it could be a clear sign that the country is already in a recession. A recession is generally defined as a significant decline in economic activity for an extended period leading to reduced output, increased unemployment, and overall economic hardship.
The unemployment rate in Canada has already witnessed a significant spike due to the pandemic. Lockdowns and restrictions imposed to contain the spread of the virus led to job losses across various sectors, including hospitality, travel, tourism, and retail. The unemployment rate peaked at 13.7% in May 2020, the highest level seen in decades. Since then, there has been a gradual recovery, and the rate has been declining.
However, there are concerns that the recent surge in COVID-19 cases and subsequent restrictions may reverse the positive employment trend. Several Canadian provinces have reintroduced lockdown measures, leading to business closures and layoffs in affected sectors. This threatens to undo the progress made in recent months and push the unemployment rate higher once again.
Economists argue that if the unemployment rate continues to rise in the coming months, it could signify that Canada is already in a recession. A further increase in unemployment means businesses are unable to sustain their workforce, leading to job cuts and a decline in consumer spending. This, in turn, can create a vicious cycle of economic contraction, further exacerbating the recessionary conditions.
It is essential for policymakers and stakeholders to closely monitor the unemployment rate and take necessary measures to mitigate the impact of a potential recession. Government interventions, such as stimulus packages and support for affected sectors, can help stabilize the economy and protect jobs. Additionally, promoting job creation through investment in infrastructure and green initiatives can spur economic growth and counter the effects of a recession.
While the situation remains uncertain, it is crucial to remain vigilant and proactive in addressing the challenges posed by rising unemployment rates. Timely intervention and targeted policies can make a significant difference in reducing the impact of a recession and preventing long-term economic damage. By closely monitoring the unemployment rate and taking decisive action, Canada can navigate its way through these challenging times and pave the path for a robust and sustainable recovery.
Post Pandemic Demand An ODD but expected force toward inflation as we reopened. THEN the avaricious greed demonstrated by price-fixing done by corporations who were also doing massive share buybacks. MASSIVE PROFITS but no Windfall Profits Tax language or better, SOME NEW METHODS OR TOOLS for these weird recovery times, by anyone in industry (obviously) or in Government. Using Interest rates hurt the people who were NOT the problem! But these two ' talking heads ' do not mention the need for better tools to handle these unique times. They only know what their college professors told them could be done or used HISTORICALLY not invented! ( Wildfire? WHAT GABAGE is he talking! BoC serves only government and big business…we need a new system!
I would say we are actually in stagnation right now.
Will the conservatives be able to save the economic decline that the joint NDP-Lib government created with their carbon taxes, housing permit regulations and taxes and their extreme energy sector regulations. It is too late to turn this Titanic even though we all see the iceberg ahead….sigh
It's in recession
Expert Trisha bitcoin Trading is legit and her method works like magic. I keep earning every single week with her new strategy.
They lie so much, they allow so many into the country to bleed economy going back and forth and do nothing about it. and cannot help their own. they have sold out. blah blah blah
We are in a silent recession
I’m fine even they raise more interest. anyone else?
Next time a Trudeau or a Freeland proclaim “don’t sweat, we have your backs” – beware, remember what happened in 2023 after they “had your backs” …
Justin threw us under the bus in an attempt to buy his majority in 2021. Rest assured, his staunchest core supporters are just fine, the rest of us likely not.
Mackland won’t declare a recession until we are well into one even if we are in one right now
Canada is in Comfortable Position to raise the Interest Rates as its dependent on Commodity Exchange and Futures.
Those numbers matter more than the equality and standard of living! The government rises!
Already? We've been in a recession since 2021. Cherry picking data to show we're not is incredibly irresponsible reporting, and embarrassing for a media outlet called business news network.
You mean we aren't?!?!
People's wealth deteriorating at incredible rates, price of everything increasing, but some economist somewhere decides "at least it's not a recession"
Yet We have massive Doctors, nurses, teachers, carpenters, etc shortages
This is financial advice and I never give financial advice: DONT LEAVE DURING THE BEAR. If you don’t want to invest…learn. If you don’t want to learn…build. If you don’t want to build observe. DO SOMETHING…other than leave. There is so much opportunity here. Take advantage!
Liberals ruined Canada .plus the stupid banks . 2nd. who buys houses at covid time .and then bidding high prices .the banks faults for giving out loans . You know what banks made 7 to 8 billion profit this year buy playing with your money .
BoC is a joke. The higher interest rates is the culprit causing inflation on housing costs. Other inflationary factors are out of the BoC's grasp like the war.
The fact that inflation remain the same despite all the interest hike means that it has little impact in our worldwide economy. In fact, mortgage represent 30% of the inflation, and without the interest hikr, it would be in the mid 2.5%. Add Trudeau carbon tax to make energy worst.
I just wish they would stop mentioning gdp growth and start providing gdp per capital. That' number is much worse. Canadians are poorer way more than they report.
Why are mortgages in this basket?
As an inmigrant living in Quebec for over 8 years, I have yet to see real unemployment and real poberty, not that they don't exist, but I have just witnessed people with average to good jobs making poor choices and people who don't want to do "Shitty jobs"
Also, people that are forever students, those who "don't care" about money and those who are "patient"
I've worked as an undercover agent in several types of jobs and industries from above average to bad jobs , the driving force in those industries are immigrants ( with very few exceptions) and just management is composed by Canadians, born and raised. Why?
The only people I've met that's struggling for real either have a disability, they've worked more that 30 years at a minimiun wage ( Don't know why) they have just divorced or are as well immigrants.
Canadians need to stop asking for accountability from the goverment alone and start taking the part of responsability they do have.
BTW, as I have projects and there're a lot of jobs, I decided to have 2, one at 30$ one at $38/h, I invited some friends , since they were looking for jobs, but hey , they don't want to "kill" themselves. working 70 hours a week!.
The F3d b4nk is independent from the F3dra1 Gov'm3nt my 4$$.
we've been in recession for a while. instead of looking at only unemployment, look at it from a holistic standpoint.
MAYBE JUST MAYBE if the Bank of Canada told Trudy, "No more printing of money !"
Wow, the Trudeau economy is sure great. It’s so good, we can afford high prices, high interest, high taxes…..because the nearly 25 billion spent on battery production for multi billion dollar companies at our expense puts millions into each Canadians household. I don’t have to lock my door, as crime is non existent….as liberals have stopped jailing people, therefore they quit criminalizing. Drugs? Who needs to worry, as liberals have made a new policy where drugs are now safe, no worries.
Doom and gloom !
Rich people and homeowners of more than 5-10 years are fine. Everyone else is struggling bad.
Joke of the day , BOC is independent
But wait a minute, Trudeau says we have never had it better!
We may as well be in a recession. Our income has been permanently destroyed. We have lost decades of wage growth and continue to go negative
I call bull he is done
It's called Stagflation. And in real terms we have been in it for more than 2 quarters already.
Trudeau has weakened Canada's position dramatically, now we pay the price…
Tent cities and empty food banks would suggest that we are in a recession
How can there be a labour shortage and rising unemployment?
We have been in recession for years.MSM knows that,but it will not bite the hand that feeds them!!!Defund MSM, CBC, CTV, Global News!!
3.1% to -0.2% in 3 months is shocking. rates from 2% to 7% are shocking. Variable rate holders are spending 15% less. those are the available numbers. This government has thrown Canadians under the bus while traveling the world and eating lobster. this is going to end well.
We've been in a recession for ages, printing money brought this on us, government spending and handouts. Now that handouts are done its gonna hit hard and fast
no it already is a sign we are in a recession. Devaluation of home prices after massive default has to occur at some point.
Has anyone done an analyses of how much of price increases are actually due to the cost of goods and services and how much is due to taking advantage of inflation and experimentation on how high prices can be raised to squeeze every last cent out of Canadians?
California is the future of Canada…
Should of doubled the rate