The Globe and Mail reports in its Wednesday, Oct. 26, edition that a new study analyzing the effects of the Bank of Canada's rate increases on workers says rate hikes are starting to cause Canada to shed jobs. The Globe's Vanmala Subramaniam writes that between May and September this year, the Canadian economy lost close to 100,000 jobs, almost all of them full-time. Jim Stanford, the report's lead author and director of the Centre for Future Work, a think tank, says it is obvious that "labour demand is shrinking or dramatically cooling off." For months now, union leaders and left-leaning economists have been saying that the rate increases will result in significant job losses at a time when workers are already struggling with higher costs. Dr. Stanford's report argues that a recession caused by monetary policy decisions would cement a pandemic-induced rise in inequality between employers and employees by flooding the labour market with newly unemployed job-seekers, weakening job security and undermining bargaining leverage for those who remain employed. Dr. Stanford says it is ironic to have employers complain they cannot find workers, "yet you see total employment falling over the last four to five months."
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