The Weekly Review, September 2 to 6, 2024

Artificial intelligence might be more likely to transform the jobs of highly educated workers

According to a new study, in May 2021, an estimated 50% of workers with a bachelor's degree or higher held jobs highly exposed to and highly complementary with artificial intelligence. This is almost four times the rate of 13% observed for workers with a high school diploma or less.

Source: Experimental estimates of AI occupational exposure in Canada

Canada's merchandise imports and exports decline in July 2024

In July, Canada's merchandise imports decreased 1.7%, while exports fell 0.4%. Consequently, Canada's merchandise trade balance with the world moved from a revised deficit of $179 million in June to a surplus of $684 million in July. Imports decreased on lower deliveries of motor vehicles and parts in July.

Source: Canadian international merchandise trade, July 2024

Businesses in Canada continue their upward trend in research and development in 2022

Canadian businesses spent a record $30.4 billion on in-house research and development (R&D) in 2022, an increase of 9.4% from 2021. Preliminary data for 2023 indicate that in-house R&D spending will continue to rise, albeit at a slower pace, with spending increasing by 3.4% (+$1.0 billion) to a projected $31.4 billion. R&D is vital to supporting innovation and technological progress, boosting economic growth and keeping Canada competitive on the world stage.

Source: Industrial research and development, 2022 (actual), 2023 (preliminary) and 2024 (intentions)

Measures of fentanyl consumption in the wastewater of Canadian cities

Drug use in Canada has become a significant public health concern, with opioid use, addiction, and resulting deaths standing out as particularly pressing issues. Norfentanyl, a byproduct of fentanyl breakdown in the body that can be detected in wastewater to estimate fentanyl consumption, is one notable example of a substance that has been measured in wastewater across Canada. Wastewater data showed that levels of norfentanyl were four to five times higher in Metro Vancouver compared with all other participating cities throughout 2022 and 2023.

Source: Measures of fentanyl consumption in the wastewater of Canadian cities, January 2022 to November 2023

Employment holds steady in August 2024

Employment was little changed in August (+22,000; +0.1%) while the employment rate decreased 0.1 percentage points to 60.8%. On a year-over-year basis, the employment rate was down 1.2 percentage points. In August, employment grew by 20,000 (+0.3%) among core-aged women (25 to 54 years old) in August and held steady across other major demographic groups. The unemployment rate rose 0.2 percentage points to 6.6%.

Source: Labour Force Survey, August 2024

Household budgets squeezed further

From July 2020 to July 2024, prices have increased significantly for owned accommodation (+25.3%), pushed upward by a 46.2% increase in mortgage interest costs. In spring 2024, 4 in 10 Canadians aged 55 to 64 (40%) and nearly 3 in 10 of those aged 65 and older (28%) reported that rising prices were greatly affecting their ability to meet day-to-day expenses.

Source: Retirement? Mortgage balance, interest rates, higher consumer prices among factors to consider