Eurodollar University WARNING: Canada’s Job Market Just COLLAPSED
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May 11, 2025 Canada's job market is facing a dire downturn, with April recording the largest two-month collapse in private employment since the lockdowns. Unemployment has surged to 6.9%, largely due to new U.S. tariffs affecting the manufacturing sector. The podcast dives into the economic turmoil and rising credit issues linked to these trade shocks. It critiques the Bank of Canada's strategies, highlighting the potential for increased layoffs and a bleak employment outlook not just in Canada, but across North America.
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Canada's Private Job Market Collapse
- Canada's private job market experienced the largest two-month decline since the 2022 lockdowns.
- Temporary government jobs hid the severity of private sector job losses in April 2025.
Bank of Canada's Rate Cuts Amid Weakness
- The Bank of Canada is cutting rates despite inflation fears due to worsening economic data.
- This contrasts with the Federal Reserve's approach, reflecting diverging monetary strategies amid weakness.
Inflation Expectations Theory Issues
- Inflation expectations theory driving central bank policies lacks empirical support.
- Jay Powell admits it's unproven but the Fed still acts on it, affecting interest rate decisions.