The Globe and Mail reports in its Wednesday, May 27, edition that the Bank of Canada warns that the labour market is shifting to a "low-hire, low-fire" environment, complicating monetary policy. The Globe's Vanmala Subramaniam and Mark Rendell write that the BOC said prolonged weak job conditions could harm workers' prospects and influence interest rate decisions. On Tuesday external deputy governor Nicolas Vincent said that it was critical for the BOC to distinguish between short-term, cyclical changes in the labour market and long-term, structural ones in order to adapt its monetary policy decision making. Under normal circumstances, elevated unemployment would imply slack in the economy, which the BOC could respond to by lowering interest rates to stimulate demand. However, if unemployment is being caused by structural changes rather than cyclical ones, lower interest rates may not be the right choice. Mr. Vincent said monetary policy can aid the economy during restructuring, but it cannot offset lower supply from trade friction or population aging. Stimulating demand in structural issues may lead to inflation and hinder necessary economic adjustments. The next interest-rate announcement is on June 10.