The headlines in Canada celebrate that inflation has fallen to 1.7% in July, but as in America, the people are not experiencing a notable downturn in prices. Politicians pat themselves on the back, claiming victory over inflation, yet the very reason CPI came down was because energy prices fell after the consumer carbon tax was suspended. This reflects a temporary change due to economic policy rather than a trend.
Take energy out of the mix and the real story becomes clear. Food prices continue to rise, up 2.8% from June, and that impacts every household. Every nation is experiencing a sharp uptick in food prices.
The real crisis, however, is in the labor market. Employment declined by 0.2% in July, meaning 41,000 Canadians lost their jobs. The official unemployment rate held steady at 6.9%, but the more telling figure is the employment rate, which fell to 60.7%. That reflects the true weakness beneath the surface.
Immigration policies have hurt Canadian youth. Unemployment among those aged 15 to 24 has surged to 14.6%, the highest level since September 2010. This is the lost generation Canada is creating with young people priced out of housing, burdened with debt, and now unable to secure employment. Historically, when youth unemployment spikes, we see social unrest and political upheaval follow. This is not simply an economic number but a warning sign of civil discontent that will only intensify.
Canada’s decline is systemic. The policies in Ottawa are driving investment out of the country. While they boast about “beating inflation,” the cost is economic stagnation and rising unemployment. We are watching the same cycle unfold in Canada that we’ve seen throughout Europe: governments destroying their own economies under the illusion that they can centrally plan prosperity.
