Macklem On What He Wants To See In Labour Market

[paraphrasing Q&A answer] Right now wage growth is running at 4-5%. The labour market, which was quite overheated (shortages, very hard time finding enough workers), has come back into much better balance but is still slightly on the tight side depending which sector you look at. You’re seeing that adjustment and with it we expect to see some deceleration in wage growth. Unless we see a big pick-up in productivity growth, current wage growth is not consistent with the inflation target. Hoping to see both deceleration in wage growth and improvement in productivity to moderate unit labour costs.