Assessing labor markets impact of inflation has become more difficult especially in periods of excess demand.
More uncertainty exists around timing of one output gap will close and inflation will return sustainably to target
there is uncertainty about level of maximum sustainable employment and relationship between labor market conditions and inflation
understanding how high the level of employment can get without sparking inflation is crucial
evidence suggests that the firmly anchored inflation expectations, the relationship between inflation and the output gap has weekend
structural forces affecting Canadian labor market are likely causing the level of maximum sustainable employment to change making it harder to identify
traditional tools to measure employment aren't as useful as they once were: the bank is looking at new ways to measure spare capacity in the labor market
has developed new tools to measure impact of Covid 19 pandemic on workers and employers
despite recent spike in inflation medium-term inflation expectations have remained relatively well anchored
considerable excess capacity remains in the labor market; rates of unemployment and underemployment remain elevated
we expect pandemic shock will have some scarring affects; we could see skills of long-term unemployed workers the road and their attachment to labor market weaken.