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TORONTO — Canada's low unemployment rate is not sustainable and is contributing to decades-high inflation, Bank of Canada governor Tiff Macklem said during a speech in downtown Toronto Thursday.
Macklem said businesses struggling to find workers can’t keep up with demand for goods and services in the economy. Last month, the Canadian economy surprised forecasters by adding more than 100,000 jobs while the unemployment rate held steady at 5.2 per cent. The strong job numbers came after four months of losses or little growth in employment.
Other polices such as the expansion of universal childcare will help increase the proportion of women in the workforce, he said, but noted it will take time.
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