Labour shortages could push up wages, ‘reignite inflation’ in long run, report warn
February 16, 2023
February 16, 2023
Advocacy
Protracted labour shortages in Canada could fuel more rapid wage growth and inflation over time, potentially prompting the need for higher interest rates long-term, a new RBC Economics report released Wednesday said. Wages are growing quickly in Canada, but so far not fast enough to match inflation, the report said.
In 2023, wage increases are expected to be “soaked up by higher prices and debt costs,” which will lower disposable incomes, the report said.
