Welcome to our Weekly Digest – stay in the know with some recent news updates relevant to business and the economy.

Renters under pressure: When will the rental market cool down?

Ask the average renter, and they can tell you: Canadian rents have soared in recent years, making it increasingly difficult for people to afford their homes. The latest data from Rentals.ca and Urbanation shows the average asking rent for all property types in May rose above $2,200 for the first time, up 9.3 per cent from the same month last year, highlighting the rapid escalation in housing costs.

This 9.3 per cent increase mirrors the jump seen the month before, indicating a consistent upward trend. With rents showing no signs of slowing down, the pressure on renters is likely to continue, raising concerns about affordability and accessibility in the housing market.

Canadian unemployment rate rises to 6.4%, making summer jobs especially scarce for students

The Canadian economy saw little change in June, with a slight decline of 1,400 jobs, according to Statistics Canada. Unemployment rose by 0.2 percentage points, reaching 6.4 per cent, continuing an upward trend that has been rising for more than a year. According to Statistics Canada’s monthly Labour Force Survey, 1.4 million people were unemployed in June, highlighting the ongoing challenges faced by job seekers.

This persistent rise in unemployment is a growing concern for policymakers and economists. Addressing this issue will be crucial for improving the country’s economic outlook and providing stability for Canadian workers.

A roadmap to increased efficiency for Canadian finance leaders

Earlier this year, the Bank of Canada highlighted the urgent need to elevate the country’s productivity levels, emphasizing the importance of improving efficiency for a robust economic future. Enhancing productivity can allow the Canadian economy to grow faster and reduce the risk of inflation, with businesses optimizing their operations for sustainable growth and stability.

Encouragingly, achieving higher productivity is a realistic goal for Canada, given the market is filled with innovative technologies designed to help companies work smarter and streamline workflows. By adopting these advancements, Canadian businesses can significantly improve their efficiency and contribute to the overall health of the economy.

The effects of a weaker Loonie on Canadian consumers and investors

As the Canadian dollar continues to weaken against the U.S. dollar, the economic strain on Canadian consumers and investors is becoming more pronounced. Higher prices for imported goods are taking a toll on household budgets, and the reduced purchasing power of the Canadian dollar means that money doesn’t go as far when buying products priced in U.S. dollars, impacting overall spending capability.

This situation is particularly challenging for investors, who face increased costs for investments denominated in U.S. dollars, potentially limiting opportunities in U.S. markets. Worse still, some currency watchers predict that the loonie won’t appreciate any time soon, suggesting prolonged financial challenges for Canadian consumers and investors, necessitating adjustments in spending and investment strategies.

How cleaning up Canada’s building industry can benefit both the economy and the climate

New net-zero building designs and decarbonizing retrofits have the potential to spark a green building boom by minimizing carbon emissions and promoting sustainability in the construction industry. Upgrading existing buildings to reduce their carbon footprint can significantly impact environmental conservation efforts.

Despite the promising outlook, challenges such as high costs, technical complexities, and regulatory hurdles pose significant obstacles to widespread adoption. However, overcoming these challenges is essential for achieving long-term environmental goals, and with concerted efforts from stakeholders, the green building boom could become a reality, leading to a more sustainable future.

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