The Great Canadian Recovery: The Impact of COVID-19 on Canada's Labour Market

Jones, Stephen R.; Lange, Fabian; Riddell, W. Craig; Warman, Casey

doi:10.2139/ssrn.4154047

Cited by 1 publication

(2 citation statements)

References 19 publications

(29 reference statements)

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“…Gains were largest in the The dramatic real wage increase in 2020 and subsequent sharp decline in 2021 reflects a large compositional change in the workforce, with high-wage workers (many who could work from home) remaining employed after the initial Covid-19 shock and many lowwage workers (such as those in the hospitality sector) being more likely to be laid off. Thus the huge measured wage increase in 2020 and sharp decline in 2021 do not reflect wage changes for the typical worker [1].…”

Section: Wage Developmentsmentioning

confidence: 97%

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The labor market in Canada, 2000–2021

Riddell¹

2022

izawol

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The labor market performance has been good (but not excellent) since 2000, and Canada avoided the worst effects of the 2008 financial crisis. Since 2000, real earnings have grown at a modest pace and income inequality has remained relatively stable. Despite these positive outcomes, the share of earnings received by the top 1% and 10% substantially exceeds levels experienced earlier in the post-war period. The resource boom and the accompanying high value of the Canadian dollar brought about substantial reallocation of labor and other resources into resourcerich regions, which reversed post-boom. Covid-19 resulted in an unprecedented decline in employment and huge increases in unemployment and non-participation. Despite this, by December 2021 most labor market measures had returned to pre-pandemic levels. Looking ahead, a central challenge will be achieving "inclusive growth." ELEVATOR PITCHFrom 2000 to 2019, Canada's economy and labor market performed well. Important in this success was a strong resource boom from the late 1990s to 2014. After the boom the economy and labor market adjusted relatively smoothly, with labor and other resources exiting resourcerich regions and moving elsewhere. Strong growth in major export markets (Asia and the US) aided the adjustment. The Covid-19 downturn resulted in an unprecedented decline in employment, and a steep rise in unemployment and non-participation. Despite the severity of the Covid-19 shock, by December 2021 most key measures of labor market activity had returned to pre-pandemic levels.

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Section: Wage Developmentsmentioning

confidence: 97%

“…However, by summer 2020 a solid recovery was underway. Despite periodic setbacks during successive waves of the pandemic, most key measures of labor market activity had returned to their pre-pandemic levels by December 2021 [1].…”

Section: Aggregate Issuesmentioning

confidence: 99%

The labor market in Canada, 2000–2021

Riddell¹

2022

izawol

View full text Add to dashboard Cite

show abstract

The Great Canadian Recovery: The Impact of COVID-19 on Canada's Labour Market

Cited by 1 publication

References 19 publications

The labor market in Canada, 2000–2021

The labor market in Canada, 2000–2021

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