Canada: COVID-19 will hit Canadian labour markets hard and fast – RBC Economics

Measures to stem the spread of COVID-19, while essential to protect the population, have taken an immediate heavy toll on Canadian labour markets, Andrew Agopsowicz from the Royal Bank of Canada reports.

Key quotes

“COVID-19 will hit Canadian labour markets hard, and fast—particularly the 2 million-plus Canadians without permanent work arrangements.”

“We’ve identified two trends that set up the COVID-19 shock to exert even greater downward pressure on the labour market: the large increase in the employment of casual and temporary contract employees relative to permanent staff, and the large shift out of goods sector employment into services.”

“In April, the number of young people seeking seasonal or temporary-contract jobs will more than double—and their employment opportunities have diminished significantly.”