In a recent interview with the Financial Post, Chief Economist Charles St-Arnaud argued that the reliability of the jobs vacancy buffer largely depends on how deep and sustained the anticipated recession next year will be.
He said that for the employers in the sectors most deeply affected by labour shortages, they may think twice about going straight to job cuts if it means facing the difficulty of getting them back on the payroll.
“It might help to provide a buffer for job cuts because (for) some employers if you are in sectors where it was very hard to get the workers you needed, you’ll probably be a bit more wary of laying off those workers because it will be hard to hire them again,” said St-Arnaud. “You might bite the bullet and keep them on your payroll longer until you really you don’t have a choice.”
The article also explored whether rate hikes are doing their job to rein in inflation and what this could mean for an impending recession in 2023. To read more, view the article here.