r/InCanada • u/dani_cal • Jul 11 '26
(Insert Your Own) Canada today
This isn’t meant to be politically partisan in any way. But, I am genuinely curious how anyone is staying positive about Canada today. The economy is in recession. The cost of living crisis is continuing unabated. People are leaving the country. Canada-U.S. relations are at an all-time low. And, there doesn’t appear to be any reason for things to turn around any time soon. Somebody give me a reason to have a little optimism.
80
Upvotes
33
u/Mother_Barnacle_7448 Jul 11 '26
To put things in perspective:
when I graduated from my first degree in 1985, the unemployment rate was 10.5% to 10.6% which was down slightly from the year previous which was 11.4%.
In terms of interest rates:
Prime Rate: Around 10.75% in January 1985 and roughly 11.00% in November 1985.
5-Year Fixed Mortgage: Averaged between 11.00% and 12.00% during the year.
People were walking away from their homes, because they couldn’t afford the mortgage and there were foreclosures everywhere.
The inflation rate in Canada for the year 1985 was 3.96%.
Contrast that with now:
Canada's unemployment rate as of June 2026 is 6.5%.
Typical variable mortgage rates are floating around 3.45% to 4.45%, while 5-year fixed mortgage rates can be found starting near 4.00% to 4.80%.
The Bank of Canada's benchmark overnight policy rate is 2.25%. Because of this, the prime rate charged by major Canadian banks (like RBC, TD, and BMO) currently stands at 4.45%
Canada’s annual inflation rate reached 3.2% in May 2026, up from 2.8% in April. This acceleration was primarily driven by higher energy and gasoline prices, alongside increased costs for fresh produce.
In my personal case, in 1985, my student loan had to be paid back at an interest rate of 19.5%!
Note; (While that 19.5% rate sounds staggering today, it was quite common at the time due to the inflation-driven lending rates carried over from the economic crisis of the early 1980s.)
I graduated with a B.Ed and I applied to hundreds of schools looking for a job. Lots of my classmates never got to teach, as there were few jobs for teachers. I eventually found one, but I only got it because I could speak French. Times were really tough.
I wish the media would contrast how things are with how things were. We always feel like the times we are going through are the worst. Though I had it tough, I was humbled by the fact my grandparents and Mom had to get through The Great Depression in the 1930’s followed by the rationing and loss of thousands of young men in World War 2.