Future of work
A curated resource of recent research on trends shaping Canada's labour market.
The chapter emphasizes that the drop in manufacturing sectors because of COVID-19 is comparable to the start of the global financial crisis in 2008. However, the decline in service sectors appears larger this time. The pandemic has caused both supply and demand shocks.
On the supply side, since many firms rely on intermediate goods produced domestically or internationally, business disruptions have lowered production. On the demand side, the loss of income, fear of contagion and increased uncertainty are all sources of lower consumption.
In addition to the sectoral effects, it is expected that firms will reduce their spending and investment due to expected lower demand. In turn, this would worsen business closures and job losses. The report also provides recommendations for how the international community can help countries with limited health capacity.