Make Kitco Your Homepage

Firms see increasing labor shortages and wage pressures - Bank of Canada survey

Kitco News

OTTAWA, Jan 17 (Reuters) - Canadian firms see labor shortages intensifying and wage pressure increasing, with strong demand growth and supply chain constraints putting upward pressure on prices, a regular Bank of Canada survey said on Monday.

The central bank's Business Outlook Survey Indicator reached its highest level on record in the fourth quarter, which was conducted before the Omicron coronavirus variant began spreading widely.

"The combination of strong demand and bottlenecks in supply is expected to put upward pressure on prices over the next year," said the survey.

"In response to capacity pressures, most businesses across sectors and regions are set to increase investment and plan to raise wages to compete for workers and retain staff."

Inflation expectations for the next two years continued to increase, with two-thirds of firms now expecting inflation to be above the central bank's 1-3% control range over the next two years.

(Reporting by Julie Gordon, editing by David Ljunggren)

((Reuters Ottawa bureau, +1 647 480 7921; david.ljunggren@tr.com))

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.