Manitoba Unemployment Again the Lowest in Canada
The unemployment in Manitoba fell to 4.9% in May, now the lowest provincial unemployment rate in the country. This was due to growth in the number of jobs, and a reduction in the number of people out of work and looking for employment compared to April statistics.
Canada’s overall unemployment is 6.2% which is about 25% more than in Manitoba. While Manitoba’s unemployment rate shows most people are able to find work, it makes it hard for businesses to grow their workforce if they desire. However, Manitoba’s average unemployment since the year 2000 is 5.3%, so the unemployment is not drastically different from historical norms for the province.
Bank of Canada Cuts Interest Rate Signaling Inflation Under Control
On Wednesday, the Bank of Canada cut interest rates by a quarter of a percent, their first rate change since July 2023. With this change, the big banks cut their prime lending rate to 6.95%. The total consumer price index has been below 3% since the start of 2024 and this rate cut signals that the Bank of Canada has confidence that inflation will continue to moderate. Economists largely project that interest rates will fall by another 1.25% by next summer which should serve to ease the cost of capital for businesses moving forward.
Updates compiled June 7, 2024
