Job quality in Canada is now at a record low and “more structural than cyclical in nature”, according to a new report released Thursday (March 5) by the Canadian bank, CIBC.
The report found “the number of low-paying jobs has risen faster than the number of mid-paying jobs, which in turn, has risen faster than the number of high-paying jobs.”
In a statement released by CIBC, Benjamin Tal, deputy chief economist and author of CIBC’s Employment Quality Index says “The Bank of Canada continues to warn us that the headline unemployment rate is not as rosy as perceived and, in fact, according to the Bank’s new and improved measure of labour market activity, labour slack is still significant.”
Tal also suggests that “a closer examination of the trajectories of our index’s sub-components suggests that the Bank [of Canada’s] prescribed remedy of low and lower interest rates might not cure what ails the labour market.”
More information:
CIBC Canadian Employment Quality Index (pdf) – here
CIBC press release – Canadian job quality sinks to record low – low-paying jobs becoming the norm – here
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