Inflation

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Question 38
Easy

The Canadian labour market in Q3 2024

The Canadian labour market went through significant structural adjustments post-2023. Data published by Statistics Canada in October 2024 showed steady employment gains alongside shifting participation rates.

Fig. 1 – Canadian labour market statistics for Q3 2024

Number ('000)Change on previous quarter ('000)Change on previous year ('000)
Employed20 54062245
Unemployed1 25018–35
Economically Inactive (Aged 15–64)6 120–1248

Source: Statistics Canada

Key observations from the October 2024 data release included:

  • average weekly earnings for full-time employees increased by 5.2% in nominal terms compared to the previous year.
  • average weekly earnings for employees decreased by 1.4% in real terms compared to the previous year.
  • sector growth was strongest in natural resources and technology, while hospitality saw minor contractions.
  • underemployment remained a structural feature, with 8.8% of part-time workers wanting more hours but unable to secure them.

Refer to the bullet points above. Identify and explain why the change in average weekly earnings in nominal terms is greater than the change in real terms.

[2]

Inflation Questions

  1. A Level
  2. /Economics
  3. /Inflation