Are we going into a recession, and does that mean a big rise in the unemployment rate? And what is the Bank of Canada’s role in supporting maximum sustainable employment? So today I want to address these questions. I will tackle them in three parts. First, I want to outline how inflation and the labour market are linked.
I’ll explain that returning to low and stable inflation is the best way to achieve maximum sustainable employment. Our mandate is explicit about that. Second, I want to highlight how the Canadian labour market was hit by COVID-19, how it recovered and what we expect in the coming months.