CIBC foreshadows falling unemployment rates

Recent policy and demographic changes could affect unemployment: CIBC
|Canadian Labour Reporter|Last Updated: 11/18/2013

OTTAWA — Recent policy and demographic changes could mean Canada’s unemployment rate will drop much further before wage pressures trigger inflation, according to a report from CIBC.

Released on Nov. 7, the report indicated the current unemployment rate, historically, would already be generating wage and price pressures that would affect inflation.

"But full employment ain’t what it used to be, and that’s good news for jobseekers," said Avery Shenfeld, CIBC’s chief economist. "Demographic and public policy changes in recent years have lowered the non-inflationary rate of unemployment. That will allow the Bank of Canada to keep rates low for long, and press ahead towards further labour market improvements."