Bank of Canada governor Tiff Macklem has signalled a readiness to let the economy “run hotter for longer” than most economists would deem safe to make sure more people, particularly those belonging to marginalized groups, are drawn into the workforce.
This strategy has the added benefit of making it more likely that interest rates will remain at their historic lows for another few years, markets analyst Kevin Carmichael wrote for the Financial Post.
“There’s a shared responsibility and monetary policy has a role to play,” Macklem said in a recent call with reporters. “If we can all play that part, we can get Canadians back to work, we can grow the labour force and we can achieve a complete, shared recovery.”
This massive undertaking requires getting a wider pool of talent, including those that might otherwise get passed over due to discrimination, onboard.
“If we don’t do that, it’s going to be an even more protracted recovery. It won’t be as shared, and there will be less potential to grow going forward,” Macklem said.
Racial justice has been one of the running themes of Macklem’s tenure. Late last year, the central bank revealed plans to double the number of senior officers who belong to minorities by 2030, and to raise the number of women in those positions by 45% over the same period.
This would boost the share of minorities and women in the BoC’s senior management to 18% and 42%, respectively.
Louise Egan, Bank spokesperson, said that the project is the embodiment of “the ideal that a more diverse and inclusive Bank of Canada is crucial to reflect the society we serve, and that it strengthens us as an organization.”
Egan added that Macklem and other top officials “have made clear that our senior leadership team needs to reflect” the diversity in Canadian society.