The Canadian labour market has rebounded impressively this fall — not only has employment returned to its pre-pandemic level, but also the size of the workforce reached record levels last month, according to a report from National Bank Financial Inc. (NBF).
NBF reported that the labour force participation rate among prime-age workers (25 to 54) hit record levels in September, surpassing the 88% mark.
This strength in the size of the workforce comes amid a surge in employment, too.
“In just 19 months, employment in Canada has returned to its pre-pandemic level — not only the fastest recovery in the last four recessions, but also a staggering performance relative to the U.S., where employment remains more than 3% below its pre-recession peak,” NBF said.
Given the strength in the labour market, the Bank of Canada should feel comfortable reigning in monetary policy, the report suggested.
“Our fixed income strategists expect more [quantitative easing] tapering by the [Bank of Canada] at the end of the month,” it said.