Business Update – 13 September 2023
Welcome to our Weekly Digest – stay in the know with some recent news updates relevant to business and the economy.
Canada added 40,000 jobs in August — but it added 100,000 more people, too
Canada’s economy added 39,900 jobs last month, about twice as many as expected, but also only about half as many as would be needed to keep up with population growth. Statistics Canada reported Friday that while the economy added jobs, the country also added about 103,000 new people.
Successive governments have taken Canada’s economic security for granted, businesses say
A new report by the Business Council of Canada, a group of about 150 companies, including Microsoft Canada Inc. and Google Canada, said successive governments have “ignored, overlooked or simply taken for granted” this country’s economic security.
Staying the course
The Bank of Canada decided to hold the target for the overnight rate at 5% and continue quantitative tightening. Governor Tiff Macklem explores some key factors behind the decision. He also explains why the 2% inflation target supports a stable economy and greater prosperity for households and businesses.
Airline competition ramps up, setting stage for showdown and reducing (some) fares
Although Canadian flights have long been dominated by Air Canada and WestJet, the emergence of newer carriers including Flair Airlines and Lynx Air has shaken up the sector, injecting fresh competition to a once-complacent market. Most airlines are setting plans in motion to ramp up growth over the next year, adding more planes to an already crowded field — and cheaper fares on the busiest routes.
Canada investigating potential election interference from China and Russia
The Canadian government announced Thursday it would launch a public inquiry into whether China, Russia and other countries interfered in recent Canadian elections, after a similar probe initiated by Prime Minister Justin Trudeau earlier this year was cut short.
Canada finance minister defends central-bank independence after rate comment
Canadian Finance Minister Chrystia Freeland defended the central bank’s independence on Wednesday after her comments welcoming the Bank of Canada’s decision not to increase its key interest rate raised concerns to the contrary.
AI will influence more jobs than it replaces: Forrester
The impact of artificial intelligence and automation is currently clouded by general panic, heart-wrenching anecdotes and exaggerated forecasts, Forrester underscores in a new report. But the report highlights that generative AI will, in fact, influence more jobs than it replaces.
Report forecasts softness in Canada’s housing market this fall
A new report forecasts that Canadian home prices will remain flat until the end of 2023. A combination of limited housing supply and high interest rates will be the main factors driving a slowdown in the market, according to the 2023 Fall Housing Market Outlook report by RE/MAX, published Tuesday.
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Contact us if you have any questions or want to discuss the next steps for your business. Get in touch with a Boyer & Boyer, CPA ([email protected]) accountant to discuss your bookkeeping, accounting, and tax needs. You can also call 613-747-8494.
J. Sylvain Boyer, CPA, CA
Boyer & Boyer, CPA
Partner Financial and Tax Strategies, Planning and Execution