Canada’s unemployment rate could hit 7.5 per cent as more newcomers are admitted to the country than expected after the government made massive cuts last year to its immigrant targets, says a new report.
“Visa approvals for temporary residents have picked up, which suggests that, rather than contracting as the government previously outlined, the population will continue to grow this year,” Harry Chambers, an assistant economist at Capital Economics Ltd., said in a note. “This will keep upward pressure on labour force growth and we now expect the unemployment rate to peak at 7.5 per cent, rather than seven per cent.”
