Time for your cheat sheet on this week’s top stories.
Canadian Real Estate
Canada’s been hit with a labor shortage over the past few years, but that may be coming to an end. Statistics Canada reported both vacant roles and the vacancy rate plummeted last quarter. A dive into monthly data shows October to December represented most of the drop. At the current pace, the shortage may be back to pre-pandemic levels by the end of this quarter.
Canada’s aging workforce got some good news—record population growth. The country saw record population growth, driven by temporary immigration. BMO warned while this is great news long-term, it’ll be tough short-term. Near-term, the bank expects stress on infrastructure and more inflation. The economy doesn’t just need people, but time to adjust to the population boom.
Mortgage-crazy Canadians haven’t warmed up to new mortgage debts yet. Originations fell 16.1% (-$4.0 billion) to $20.7 billion in January, coming in 41.0% (-$26.6 billion) lower from last year. This is the sharpest decline in annual growth in at least 10 years of data. On the other hand, such suppressed demand is likely to lead to a bounce in the coming months.