September 10, 2025
RED FM News Desk
Former Bank of Canada governor Stephen Poloz is warning that both Canada and the United States are heading toward a recession amid a backdrop of tariffs, geopolitical tensions, and economic uncertainty.
According to Poloz, the economic trajectory for both nations is “not a positive one.” He stated, “We have two economies, actually, that are sliding, let’s say, not in recession, probably, but sliding in that direction.”
Poloz noted that the slowdown is evident in labor market numbers. In August, Canada’s unemployment rate jumped to 7.1%, as the economy lost 66,000 jobs for the month. This marks the highest level since May 2016, excluding the pandemic period.
Youth unemployment has risen to 14.5%, double the national rate, a trend Poloz called “quite worrying.” He suggested that artificial intelligence (AI) may be a factor, saying, “We may be beginning to see the first concrete evidence that AI is having a wider impact on labor markets. It’s going to happen at that entry level. That’s where we’re going to see it first.”
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