The growing costs of food and other necessities are a key concern for Canadians. Coupled with rising interest rates, these increased costs mean consumers are spending a larger share of their budget on necessities. As a result, they are decreasing their spending on a wide array of other products and services. In addition to reducing spending on groceries and other goods and services, consumers report changing their buying habits, such as choosing less expensive brands, buying in bulk and looking for discounts.

Overall, workers think the labour market is strong, but some signs indicate softening. Recently, the Bank of Canada’s experimental Daily Internet Survey of Confidence—a high-frequency survey of Canadians—found that fewer people expect employment to increase in the next six months.

However, many respondents to the Canadian Survey of Consumer Expectations said labour shortages and a high number of job vacancies will help stabilize the job market. Some respondents reported that labour shortages are leading to the temporary closure of some local stores. In a follow-up interview, one participant said, “The store was not open because they could not find enough workers.”

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