Last week’s Labour Force Survey provided a very strong indication that Canada’s job market has largely recovered in most sectors. Workers have rejoined the workforce, notably in the service sector, and companies have hired to meet demand. On top of this, job vacancies across the country are near record highs.
Both room to manoeuvre at the national level and the Stability and Growth Pact explicitly demand that the public finances of the member state are balanced and healthy. The second aspect of fiscal policy, closely connected to the first, is the overall degree of fiscal policy discipline in the euro area.