“I bet almost everyone in this room knows at least one family with adult children living in their basement. I’m pretty sure these kids have not taken early retirement.”
And now, according to a Bank of America study undertaken by Emanuella Enenajor, “The basement has gotten a little more crowded”.
And although the unemployment rate for youths between the ages of 15 and 24 has retreated to 55.2% from 56.1% when Poloz flagged the problem, the actual numbers of millennials unemployed has grown, according to a report in this morning’s Financial Post.
And according to the study, the matter keeps getting worse.
Employment is struggling in Canada with the so called “basement numbers” increasing as jobs become even scarcer without a significant economic rebound on the horizon, and an unemployment rate that continues to creep lower, month in and month out – unlike the faster growing economy in the U.S.
Enanajor concludes that with troublesome employment rates, the Bank of Canada is far away from hiking interest rates: “With the labor market struggling, why would the Bank of Canada consider a rate hike?”