More broadly, low, stable and predictable inflation has helped to encourage more stable economic growth in Canada and lower and less-variable unemployment (Table 1). The reduced cyclical variability in unemployment has particularly benefited more vulnerable households. Unemployment rates for younger workers and those with less education are considerably more variable than those for well-educated, prime-age workers (Table 2).
More stable economic growth in Canada in the 20 years since we began inflation targeting has reduced the cyclical fluctuations in unemployment for workers across all age and educational categories, but the largest declines in variability have been experienced by younger and lesseducated workers. Mitigating cycles is good for equality. Inflation control also offers a more direct benefit to lower-income households.