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Waiting for Recovery: The Canadian Labour Market in June 2020
Stephen R G Jones1, Fabian Lange2, W Craig Riddell3
1Department of Economics, McMaster University, Hamilton, Ontario.
Canadian Public Policy. Analyse De Politiques
|April 17, 2024
Summary
Canada's labor market shows signs of recovery, with job postings increasing and some unemployed individuals returning to work. However, a rise in job searching among those without job attachment signals potential challenges ahead.
Area of Science:
- Labour Economics
- Canadian Economic Indicators
- Employment Trends
Background:
- The Canadian labour market experienced a significant disruption, characterized by high levels of temporary unemployment and individuals absent from work.
- A notable portion of the workforce was not in the labour force but awaiting recall to their previous positions.
Purpose of the Study:
- To analyze the current state and potential recovery trajectory of the Canadian labour market.
- To identify key indicators signaling labor market resilience and potential risks.
Main Methods:
- Analysis of recent Canadian labour market data, focusing on employment, unemployment, and job vacancy postings.
- Examination of trends in temporary unemployment, recall situations, and labour force participation.
Main Results:
- Job vacancy postings have recovered to approximately 80% of pre-crisis levels.
- Employment increases in May 2020 were partly driven by individuals returning from recall.
- An increasing trend in job searching among unemployed individuals without job attachment and those on recall has been observed.
Conclusions:
- The Canadian labour market exhibits encouraging signs of a potential rapid rebound.
- However, a growing share of unemployed individuals without job attachment and those on recall actively seeking jobs presents a potential warning sign for sustained recovery.
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