Job vacancies in Canada climb to a record high, signaling inflationary pressure

There were 1,005,700 vacancies at the start of May, 42% more than a year ago

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Job vacancies, an economic indicator that Bank of Canada Governor Tiff Macklem is watching closely, hit a record high in May as employers struggled to fill jobs in the boiling job market.

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Statistics Canada reported on July 28 that there were 1,005,700 vacancies in early May, up slightly from 1,001,100 in April, the previous record. The May number was 42% higher than the previous year.

Job vacancies are an important sign of what the Bank of Canada calls ‘excess demand’, as businesses’ inability to hire enough people to fill orders suggests the economy is unable to supply all goods and services. that consumers and businesses are looking to buy. . The mismatch is one of the factors that pushed inflation to its highest level in four decades, prompting Macklem to raise the benchmark interest rate by a full percentage point earlier this month. .

According to Statistics Canada, the job vacancy rate remained at 5.8% for a second consecutive month, compared to the unemployment rate of 5.1% in May. This 1:1 unemployment-to-vacancy ratio is down from last year’s 2:4 ratio.

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