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2026-05-26 23:29:15
[Bank of Canada Warns of "Low Hiring, Low Layoffs" in Labor Market; Three Trends Indicate More Than a Short-Term Slowdown] Bank of Canada Deputy External Governor Nicolas Vincent stated that the Canadian labor market is undergoing structural changes—as evidenced by the "low hiring, low layoffs" environment—which will complicate monetary policy decisions. Speaking in Montreal on Tuesday, Vincent highlighted three trends in the job market that indicate the slowdown is not merely temporary: low turnover, rising long-term unemployment, and difficulty for young people to find employment. Vincent warned that during periods of structural change, the central bank's ability to help the economy is limited, and stimulating demand through interest rate cuts could fuel inflationary pressures. "Monetary policy can help the economy to some extent during periods of economic adjustment, but it cannot compensate for supply declines caused by factors such as trade frictions or an aging population," Vincent said.
