Many factors are having a positive impact on the Canadian economy right now. Labour market conditions remain tight, and that is pushing up wages. Better income growth is leading to a more upbeat outlook for consumer spending. A recovery in resale housing markets and a long-awaited rebound in energy sector investment is also occurring. An extraordinary 400,000 new jobs since the beginning of the year has led to two important side effects—a boost in the labour force participation rate, and accelerating wage growth (as firms pay more to compete for workers).
Many factors are having a positive impact on the Canadian economy right now. Labour market conditions remain tight, and that is pushing up wages. Better income growth is leading to a more upbeat outlook for consumer spending. A recovery in resale housing markets and a long-awaited rebound in energy sector investment is also occurring. An extraordinary 400,000 new jobs since the beginning of the year has led to two important side effects—a boost in the labour force participation rate, and accelerating wage growth (as firms pay more to compete for workers).