Future of work
A curated resource of recent research on trends shaping Canada's labour market.
This paper discusses the types of unemployment caused by COVID-19 and their differing patterns and dynamics throughout the pandemic.
While unemployed job seekers usually make up most of the unemployed, temporary separations from employment dominated the labour market at the beginning of the pandemic. As many of these separations were not classified as layoffs, the already high unemployment rate was understated. The rates of temporary layoffs remain high through recovery while labour demand as measured by job postings is also extremely high.
The paper thus argues that pandemic restrictions might be stalling full recovery. The impact of COVID-19 was also not shared equally. The people who maintained paid employment during COVID-19 had higher earnings and worked in jobs with higher skill requirements compared to people who became unemployed.
Additionally, long-term unemployment, which has increased, is more difficult to reverse and, as federal relief programs end, long-term unemployed workers may suffer adverse effects.