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CFIB Wage Intentions Cool But Skilled Shortages Still A Significant Issue

CANADA DATA
  • The CFIB small business barometer index increased from 45.4 to 47.0 in December as it reversed some of November’s sharp decline to the lowest reading since Mar 2020.
  • Wage growth has been one of the more hawkish areas of the Canadian economy with realized wage growth still tracking at the high end of the 4-5% Y/Y range.
  • This survey showed another dip in average wage plans for the next year, to 2.5% for its joint lowest since August and before that Oct 2021. For context though this survey has undershot realized wage growth for some time now and remains above the 1.7% averaged through 2019.
  • Further, the share of small firms seeing a lack of skilled labour holding back production reversed its recent moderation trend and increased to 49.8% for its highest since August.

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