The Bank of Canada has said that even though there was a rise in labor and wages last year there is some labor which is unused and this can limit wage and price pressures. The key question is whether the rise in the economy will lead to inflation or not.
In recent months, wages are showing a positive sign. The increase in annual pay rose from 3.1% in February to 3.3% in March. And, the percentage gain in wage was the same for both the months.
The Canadian dollar was trading at C$1.2752 per U.S. dollar. According to Avery Shenfeld, chief economist of CIBC World Markets, there will be no increase in the rate because the number of jobless did not increase further and the wage gains also did not accelerate. There is a probability that the central bank will increase its interest rate twice this year.
Shenfeld also said to its investors that the trend of jobless rate and wage increase is sufficient to keep Bank of Canada on hold for now considering a marginal growth in the GDP in the last two months.
The field of Construction has added 18300 jobs in the month of March. It is the highest since February 2016. The number of new home construction projects has increased more than expected which according to most of the economists resulted in the rise in jobs.
