Slowdown in Wage Growth Presents 'Real Risk' to Canada Economy -- Market Talk

0937 ET - Wage growth has slowed noticeably in Canada's labor market, or below 3% on a 12-month basis, which likely portends a subsequent cooling in household consumption as inflation stays near or above 3%, says economist Brendon Bernard at job-posting site Indeed.com. Overall, Canada's labor market has stabilized with a decent 2Q showing, although Bernard says a further pickup in hiring is not in the cards due to stagnant population growth. "Slow job growth is likely to continue through 2026," Bernard says, adding the deceleration in wages "presents a real risk" to the broader economy, given elevated energy prices. The drop in wage growth threatens "to erode purchasing power gains built up over the past few years." (Paul.Vieira@wsj.com; @paulvieira)

(END) Dow Jones Newswires

July 28, 2026 09:37 ET (13:37 GMT)