Canadian job gains unexpectedly accelerate in September
Job growth accelerates in September, full-time work sees strong gains
Canada saw 378,200 positions created in September – more than double Bay Street’s estimate – with most of the gains in full-time work. But that’s still a long way to go from the three million positions lost from the early days of the pandemic. While employment numbers may be picking up, fear is mounting over the possibility of a second lockdown as COVID-19 cases climb. A poll from the Canadian Federation of Independent Business published earlier this week revealed 56 per cent of small business owners said they wouldn’t easily survive another economic shutdown.
Bank of Canada governor's warning on over-leveraged Canadians
Bank of Canada Governor Tiff Macklem put "dangerously over-leveraged" Canadians on notice this week. He said in a speech Thursday that managing the financial risk from the COVID-19 pandemic is more critical than ever. Macklem warned one of the risks the Canadian central bank will be watching is the housing market and whether or not Canadians who are buying homes are taking on more debt relative to their income amid a historically low-interest rate environment. “If too many Canadian households start to become dangerously over-leveraged, policy-makers have several macroprudential tools they can use. Our experience with the mortgage-interest stress test shows how effective these tools can be,” Macklem said.
Canadians able to start applying for new government benefits
Canadians forced to miss work due to COVID-19 were able to start applying for new government benefits this past week. The Canada Recovery Sickness Benefit and the Canada Recovery Caregiving Benefit came available after the Canada Emergency Response Benefit (CERB) – which helped support nearly nine million Canadians through the fallout of the pandemic – came to an end last month. Applications for the new Canada Response Benefit, which offers financial help to those who don’t qualify for Employment Insurance, will open Oct. 12.
Consider tapping your RRSP if you suffered a COVID income blow
As pandemic restrictions start to tighten once again, some Canadians may still be reeling from reduced income during the first wave of COVID-19. But as Dale Jackson says, relief could be as close as their registered retirement savings plans. RRSPs are set up to encourage Canadians to grow their investments under a tax shelter, he explains, and discourage them from making withdrawals until they retire in a lower income bracket, which many Canadians could find themselves in this year. Jackson offers up some considerations to make if you’re thinking of tapping into your RRSP.
Working parents struggling to balance jobs, life in COVID era
With the new school year well underway, working parents are struggling to balance their jobs, their childrens’ schooling, and child care during the uncertainty of the pandemic. BNN Bloomberg spoke to three parents on the challenges of being a parent in the COVID-19 era, especially when it comes to managing their jobs and finances.
Canadian consumer confidence stalls in September
Canadian consumer confidence is slowing, with September marking the smallest monthly gain since the beginning of the pandemic, according to the latest Bloomberg Nanos Canadian Confidence Index. However, economists saw this coming, predicting the fall and winter months will bring a slowdown in economic recovery. Consumer confidence fell to a record low back in April as Canadians started to feel the full impact of pandemic-related lockdowns.
“While it may seem in certain parts of the country that things may be letting up, I would still urge people to think about bolstering their emergency funds. We still don’t know what happens next.” – Preet Banerjee, founder, MoneyGaps