The downside to Canada’s hiring surge, CBC’s shift to streaming and how much money you need to retire: Must-read business and investing stories

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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.

Canadian hiring surge might mean another interest rate hike

Despite high inflation, rising borrowing costs and talks of an imminent recession, Canadian companies are holding their head counts strong, adding another 150,000 positions to the labour market last month. As Matt Lundy reports, that figure follows a gain of roughly 69,000 jobs in December, with the unemployment rate holding steady at 5 per cent. Financial analysts were expecting an increase of only 15,000, putting renewed focus on the Bank of Canada ahead of its next rate decision on March 8. At its last announcement on Jan. 25, the central bank said it was holding its benchmark interest rate at 4.5 per cent, but renewed momentum in the labour market could convince the BoC that additional rate hikes are necessary to curb demand and bring inflation under control. According to Darcy Keith, money markets are still pricing in only small odds of a rate hike at the next announcement. Some economists believe if a further rate hike arrives, it would not be until April when the bank provides a full update on its economic projections.

CBC plans to go full streaming

Big changes lie ahead for the CBC, as the public broadcaster plans to end traditional TV and radio broadcasts, and move completely digital, with audiences shifting to streaming. The move is unlikely to happen over the next decade, but Catherine Tait, president and chief executive officer of the CBC, said the broadcaster is eventually preparing to shift all its content to online-only “in order to remain relevant.” As Marie Woolf reports, the age of the core audience for television is more than 55 years, while younger Canadians and newcomers are online only. The Broadcasting Act specifies that the CBC should “provide radio and television services” so such a change may also require a change to the act. “We are the only broadcaster in the system that has the obligation to serve all Canadians,” Ms. Tait said. “So that means rural audiences that may only have their television – we are not going to abandon them.”

Ontario cannabis shops hit a high

Has frantic expansion of cannabis shops in Ontario finally peaked? January marked the first month that not a single new store opened to the public since the stores became legal, according to Jason Kirby’s reporting. It’s the latest sign that a reckoning may be coming to the industry. Just this week, pot producer Canopy Growth announced a round of layoffs affecting one-third of their staff, and the closure of their flagship production facility in Smiths Falls, Ont., in order to reduce costs. The cannabis giant once boasted an $18-billion stock market valuation less than four years ago. In terms of marijuana retailers in the province, the pace of expansion peaked in July, 2021, when 110 new stores opened, then slowed dramatically last year, according to Alcohol and Gaming Commission of Ontario figures. As of last month, the province had 1,600 cannabis stores in operation.

How much do Canadians need to retire?

According to a new BMO survey, Canadians now believe they need $1.7-million in savings for their retirement, a 20-per-cent increase from 2020. As Amanda Stephenson reports, that number is the largest sum since BMO first started surveying Canadians about their retirement expectations 13 years ago, and a sharp increase from the $1.4-million that Canadians expected to need for their nest egg two years ago. Driving the belief that seniors need an extra $300,000 in the bank is high inflation exceeding wage gains and eroding purchasing power for most families. Canada’s annual rate hit a four-decade high of 8.1 per cent in the summer of 2022 and has since fallen to 6.3 per cent. The survey also found that just 44 per cent of Canadians are confident they’ll have enough money to retire as planned, a 10-per-cent drop from 2020.

Not enough skilled labour for Canada’s growing EV industry

Only a few years ago, it was uncertain whether the auto sector in Windsor would be able to handle the shift from traditional manufacturing to electric vehicles. But new investments from auto giants – highlighted by the decision from Stellantis NV and LG Energy Solution to partner on Canada’s first EV battery factory here – has created a relative boom. Employees to staff that plant are now in very high demand, which the city and region are struggling to meet, writes Adam Radwanski. A shortage of skilled labour is frequently cited as the biggest obstacle to attracting more multinational commitments, and educational and training programs to address that problem are already underway. But the clear takeaway is that Canada needs to do much more to prepare for jobs of the future.

How falling house prices affect your retirement

If your house is your retirement plan, you may need some additional planning. A new study shows that while home prices more than tripled from 1999 to 2019, the standard of living for retirees soaking up all that growing home equity was almost flat. According to Rob Carrick, retirement was affected by wealth from both investment assets and houses, but it was mainly house prices driving the wealth gains we saw in soaring net worth numbers. Like so many of the financial trends in play in 2020 and 2021, net worth has reversed direction. Statistics Canada reported last month that average household net worth fell 6 per cent year-over-year in the third quarter of 2022. This might be discouraging news for boomers and other retirees planning to use home equity to generate funds they can live on, but maybe falling house prices aren’t quite the problem they seem to be.

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