ANALYSIS: Bank of Canada Mum on Measure of Full Employment Amid Weakening Job Market

OTTAWA—The Bank of Canada did not address a concept related to full employment in its March 6 interest rate announcement when discussing the weakening labour market.  The BoC’s primary goal is to return inflation to 2 percent. But it also has to support maximum sustainable employment (MSE), similar to the full employment aspect of the dual mandate of the U.S. Federal Reserve. It’s a level that’s not directly measurable. The central bank used to provide an MSE chart in its quarterly monetary policy report, measuring several labour market indicators against historical ranges. But it hasn’t provided such analysis since last July....