Canada’s unemployment rate recently rose to 6.9%, a noticeable increase from the previous month. This change is mainly because of fewer jobs in manufacturing and trade, impacted significantly by ongoing trade issues with the U.S., particularly tariffs.
But what does this mean for you?
Interest Rates:
Typically, when unemployment rises, the government may choose to keep interest rates steady or even lower them to stimulate the economy. Lower interest rates can help boost spending and borrowing, making loans more affordable.
Mortgages:
If interest rates go down or remain low, mortgages become more affordable. This might mean it’s a great time to refinance your current mortgage or consider buying property, as your monthly payments could potentially be lower.
Real Estate:
With more affordable mortgages, there can be increased interest in real estate. However, higher unemployment can also mean fewer people able to afford homes, which may slow down the market temporarily. If you’re considering buying, selling, or investing in property in Oshawa, Whitby, Port Hope, Bowmanville, or nearby areas, this is an important time to discuss your options.
Investments:
Economic uncertainty can impact your investments differently depending on the sector. Jobs in public administration and finance have grown recently, suggesting stability or growth potential in these sectors. However, manufacturing and trade might experience more volatility. Reviewing your investment portfolio with a financial advisor now can help ensure you’re well-positioned despite these changes.
Understanding these economic shifts is crucial to making informed financial decisions. As your financial advisor serving Oshawa, Whitby, Port Hope, Bowmanville, and surrounding communities, I’m here to help navigate these uncertainties and ensure your financial plan remains robust and adaptive.
Ready to discuss how these changes affect your financial goals? Click “[Book Online]” now for a complimentary consultation, and let’s secure your financial future together!