Bank of Canada fears job losses

Banking Frontiers - - Regulator -

The Bank of Canada has come out with sta­tis­tics stat­ing there could be some 60,000 fewer jobs by 2019 in view of the in­creases in min­i­mum wages across the coun­try, but la­bor in­come will be higher due to the in­creases. The cen­tral bank in a report stated the con­sumer price in­dex could be boosted by about 0.1 per­cent­age points on av­er­age and real gross do­mes­tic prod­uct could be cut by 0.1% by early 2019. The num­ber of jobs lost was based on a 0.3% de­cline in the num­ber of hours worked, while ag­gre­gate real wages were es­ti­mated to in­crease 0.7%. The report also said if the av­er­age work­ing hours de­clined fol­low­ing the in­crease in the min­i­mum wage, the num­ber of jobs lost would also be lower. Canada has raised its min­i­mum wage to $14 per hour on 1 Jan­uary 2018 from $11.60 and plans to in­crease it to $15 in 2019.

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