Childcare and education could help recovery

Governments could increase access to child care and reduce its cost to help the labour market rebound, and reduce the risk of longterm economic scarring for women who have disproportionately felt the brunt of pandemic job losses, the governor of the Bank of Canada says.

Making child care more affordable and available across the country would help more women return to the labour force and stay there as conditions improve, Tiff Macklem said, noting their job numbers have fluctuated as school and daycare openings and closures during the pandemic affects their ability to work.

Women and youth disproportionately felt the brunt of the pain as the second wave of the COVID-19 virus caused more than 250,000 job losses in the last two months, Macklem said Tuesday.

The mounting losses and negative impacts on women threaten years of workforce gains. Macklem said child care and more active labour market policies from governments could act as a buttress and help limit the damage to some women’s careers and lifetime earnings.

“We’re certainly hoping that as we see stronger growth, as the economy rebounds, we see a rebound in the labour market participation of women and certainly as children go back to school on a permanent basis, as daycares reopen on a permanent basis, that should support it,” Mackelm told reporters.

“That is something to lean into. This is an opportunity to support recovery, and grow the economy’s long-term potential.”