Weekly Digest- 22 May 2024

Welcome to our Weekly Digest – stay in the know with some recent news updates relevant to business and the economy.

Economists to have a close eye on April inflation report as BoC rate decision nears

Forecasters expect this week’s inflation report to show Canada’s inflation rate fell last month, but financial markets are still unsure whether a June interest rate cut is in the cards for the Bank of Canada.

Auto theft crisis deepens as insurance claims top $1.5 billion for first time

Canada’s auto theft crisis is deepening, as insurance claim costs top $1.5 billion for the first time. New data from the Insurance Bureau of Canada (IBC) shows insurance providers handled 49,679 claims for stolen vehicles in 2023, with costs eclipsing $1.54 billion for the year. Overall, the number of claims has spiked 56 per cent since 2018, while costs have gone up 254 per cent.

Canada’s economy faces ‘mismatch’ between employers and newcomers

The head of one Canadian think tank says that immigrants face a skills gap and barriers entering the country’s jobs market.

Canada and the United States extend bilateral energy transformation task force for an additional year

Canada and the United States are pleased to announce the renewal of the bilateral Canada-U.S. Energy Transformation Task Force (ETTF) for an additional year.

Canada unexpectedly added 90,000 jobs in April, though unemployment stayed flat at 6.1%

The Canadian economy gained 90,000 jobs in April, much higher than the average of 20,000 jobs many economists were predicting for the latest Labour Force Survey numbers from Statistics Canada.

Mandating a $20/hour living wage across Canada could push over half a million small businesses to the brink of closure

Mandating a $20 per hour living wage in each province would cost the Canadian economy $44.9 billion in extra wages and put almost 600,000 small businesses at risk of becoming unprofitable, finds a new report by the Canadian Federation of Independent Business (CFIB).

Exporter confidence rebounds with businesses more optimistic about economic conditions

Exporter confidence has increased by nearly five points, according to Export Development Canada (EDC)’s latest biannual Trade Confidence Index (TCI). The TCI rose to 70.1 index points in mid-year 2024, up from 65.7 points at the end of 2023. However, it still sits below the historical average of 72.7.

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