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Predicted earnings losses from graduating during COVID-19. Canadian Public Policy.

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Key Takeaway
Those who graduate in 2021 can expect to lose 5–12% of total annual income that would have been earned in the absence of the pandemic. 

 

 

This paper explores how COVID-19 and the lockdown imposed to stop the spread of the virus have resulted in a significant decline in the labour market prospects of graduates otherwise poised to enter the market at a time when conditions were generally favourable. The authors predict that 2021 graduates will lose between 5% and 12% of the total annual income that would have been earned had the pandemic not occurred. Additionally, the authors illustrate how high school graduates may be greatly impacted by the current economic crisis. In such uncertain times, the authors advocate for longterm public measures such as job search assistance programs and facilitating access to post-secondary education. Such measures would assist the transition of Canadians to occupations requiring higher education, which are far less likely to face a high-risk of job transformation due to automation in the future.  

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