Higher productivity helps keep prices down and wages up. It gives workers more money to spend and increases the value they get when they spend it. And it allows businesses to weather cost increases without having to raise prices. All together, these factors drive economic growth.
Labour force participation tells us how many people are active in the labour market and how many have dropped out of it. It is just one piece of a larger puzzle, but it is essential to understanding what is happening in the labour market overall.
When the Bank of Canada changes its policy interest rate, it affects every part of the economy – but that does not happen all at once. Learn more about how raising and lowering interest rates takes effect through the monetary policy transmission mechanism.
Differences in income, wealth and debt across households are important—for the economy, for the health of the financial system and for monetary policy.
More education typically leads to higher pay, but as more people become educated, wages can decrease. Your education choices significantly affect your future earning potential.