Labor market conditions have improved somewhat on the whole. Although the unemployment rate remains at a high level and employment growth is weak, overtime working hours have increased, and the ratio of job offers to job applications has continued its gradual rise.
Much of this appreciation can be linked to factors such as the strength of demand for Canadian goods and services, continuing firm prices for commodities, and a positive outlook for Canadian economic growth. But over this period, the overall response of the Canadian dollar to these factors appears to have been stronger than historical experience would have suggested.