Bank of Canada governor says diverse hires are the key to economic recovery

The governor of the Bank of Canada says the country won’t fully heal from the economic wounds of COVID-19 until it addresses the uneven impact the pandemic has had on certain sectors and workers.

Tiff Macklem says creating an inclusive economic recovery may not just get the country back to where it was pre-pandemic, but maybe bring it to a better place for all.

To do that, he suggests companies focus on hiring those hardest hit through the pandemic like women, Indigenous people, racialized Canadians and people living with a disability.

Macklem says in a speech on May 13 that drawing those workers into the labour market can help companies make better decisions and boost the economy’s potential output through a cycle of more income followed by demand for goods and services.

But he also says in the speech to universities in Atlantic Canada that the central bank has to do its part as well, noting the need to improve diversity at the senior ranks of the organization.

Macklem adds the central bank will take a look at its bond-buying programs and drop to its key policy rate to see if they have created inequalities across the country.

He pointed to high-contact service sectors like retail and restaurants whose output is almost 20 per cent below pre-pandemic levels, just as the combined output of the rest of the economy is slightly above pre-pandemic levels.

“The pandemic makes fostering an inclusive economy more important than ever. We won’t fully heal the economy until we address these unequal impacts,” Macklem says.

“And rather than just trying to recover to where we were before the pandemic, maybe we can bring the economy to a better place for everyone.”