Getting caught up on a week that got away? Here’s your weekly digest of the Globe’s most essential business and investing stories, with insights and analysis from the pros, stock tips, portfolio strategies and more.
Canada’s jobs growth triples estimates in September
Canada added 64,000 jobs in September, and the unemployment rate held steady at 5.5 per cent for the third consecutive month. Meanwhile, compensation is climbing at elevated rates. The average hourly wages rose 5 per cent in September on a year-over-year basis. Matt Lundy reports that while the combination of new jobs and strong wage growth will be cheered by workers, the Bank of Canada is trying to take some steam out of the labour market – putting pressure on the central bank to potentially break their rate-hike pause at their next interest rate decision on Oct. 25.
The pain of soaring mortgage costs
Canadian homeowners are feeling the squeeze of interest rates, and facing difficult decisions in order to continue paying off their loans. They’re deferring retirement, cutting back expenses and worrying about how they will cover their next mortgage payment. Some are even lengthening their mortgage amortization, stretching out the duration of their payments from 15 or 25 years to 30 years or beyond to keep their payments down. Irene Galea spoke to nine Canadians about the pain of soaring mortgage costs and what they’re doing to cope.
Young households are abandoning the housing market, data suggest
Young households, in particular, are turning their backs on the housing market in the face of the highest interest rates in years. New data from Statistics Canada shed light on the financial hit households in different income and age groups have taken, in particular those households with a primary income earner younger than 35. The mortgage debt of young households is now shrinking. Why? Young homeowners could be downsizing to more affordable homes or even turning away from the market entirely due to affordability concerns. Jason Kirby takes a closer look in the latest Decoder.
Laurentian Bank replaces CEO, board chair amid turmoil
The drama at Laurentian Bank of Canada continued this week after announcing the abrupt termination of its chief executive officer Rania Llewellyn, the first woman to run a major Canadian-based bank. Éric Provost was appointed the new CEO of the country’s ninth-largest lender. Laurentian also announced chair Michael Mueller had resigned. His resignation was an act of protest in response to the firing of Ms. Llewellyn, Andrew Willis reports. The boardroom shakeup comes after a five-day service outage and a failed sales process over the summer.
BlackBerry to split into two public companies
In the latest tech news, Blackberry is splitting into two separate public companies. The Waterloo, Ont., company said it would spin out its cybersecurity and Internet of Things business units in an attempt to revive investor interest, reports Sean Silcoff. The announcement follows a strategic review launched in May that saw Blackberry hire investment banks to provide advice on how to increase shareholder value. The company said its strategic review wasn’t finished, which means it could sell off some or all of the remaining parts of its business.
Kids cost parents more than $350,000: Statistics Canada
According to new estimates by Statistics Canada, Canadians can expect to spend more than $350,000 to raise a child from birth to the age of 17. Another fun fact: If parents continue to support the child through postsecondary studies until the age of 22, that figure climbs by a further 29 per cent. The study is a rare effort to quantify child-rearing costs beyond the age of majority, as more young adults take longer to strike out on their own, Erica Alini reports. Variables such as household income, number of parents, total number of children and where the family lives can all make a difference.
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