Pandemic exodus of Canadian families from cities could fuel wage inflation

People walk on the frozen beach in Wasaga Beach, Ontario, Canada, February 9, 2022. As young families poured out of some of Canada's major cities, the 2021 census shows smaller communities seeing big growth booms, such as the resort town of Wasaga Beach seeing a 20.3% increase in population since 2016. REUTERS/Cole Burston

A pandemic-driven exodus of young families out of Canada's largest cities has depleted a core age group of workers from the already tight labor market, which experts say risks accelerating wage inflation in certain industries.

Leading the rush out of Canada's big cities were children under 10 and millennials, or young families, Reuters analysis of official data shows, many who moved to smaller cities or rural areas in search of more space to live and work.