Time for your cheat sheet on this week’s top stories.
Canadian Real Estate
Canadian Unemployment Adds 42k Workers, 1 In 5 “Long-Term” Unemployed
Canada’s economy hasn’t lost many jobs, but it isn’t making many either. That’s a big problem when the country’s population is growing at one of the most rapid rates ever. Unemployment climbed to 6.4% of workers in June, about 1.4 million people. The excess labor surge means jobseekers are having a hard time finding work too, with 1 in 5 now considered long-term unemployed.
Toronto Real Estate Sees Fewest Sales In Decades, Record Condo Listings Canceled
Greater Toronto real estate activity was expected to pick up after the rate cut cycle began. Last month’s data shows only sellers got that memo, with June home sales being the worst in two decades while inventory climbed. It was condos that attracted the most attention though—one bank found that frustrated sellers canceled a record number of listings in the month.
Canadian Households Now The Third Most Indebted In The World
Record low interest rates helped Canadians go from highly indebted to the third most indebted country in the world. A new analysis from Desjardins shows household debt to GDP makes Canada the third most indebted country on the planet, beat only by Australia and Switzerland. During the low rate-driven credit boom, households racked up a lot of debt—driven primarily by real estate investors drawing mortgage credit. Not surprisingly, most of the debt is held by a small share of households which happen to be the country’s highest earners.
Bank of Canada Rate Cut In July Less Likely, But Can’t Be Ruled Out: BMO
Canada’s recent inflation boost lowered the odds of a rate cut this month, but haven’t eliminated them. Experts at BMO note the country’s excess supply and employment erosion still remain, indicating inflation’s acceleration can be temporary. They have yet to change their official forecast, but with a number of reports before the central bank makes its decisions, a lot can happen before the end of the month.
