Below are some key takeaways from the remarks delivered by the Bank of Canada’s Senior Deputy Governor Carolyn A. Wilkins to the Toronto Region Board of Trade.
- Regional and sectoral factors can explain a lot of why wage growth has been tame.
- Wage gains in energy-intensive regions continued to lag behind those in the rest of the country in 2018 because of ongoing adjustments to lower energy prices.
- Wage gains in other provinces were closer to what one would expect in a labour market with little slack.
- Other structural factors, such as technological innovation, the rise of “superstar” firms and the gig economy, may be reducing workers’ bargaining power.
- The Bank of Canada will do its part to meet our inflation objective.
- Businesses and governments can help build an even more vibrant job market by investing in education and training, encouraging labour mobility, and improving the competitiveness of Canadian companies.
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