Protecting jobs from 2nd wave paramount
The economic health of a country, like that of a household, depends on jobs, and Canada got 378,000 more of those in September.
We are three quarters of the way back.
That’s such precious good news that we need to focus on making sure it’s not short-lived, undermined by a resurgence of the pandemic.
Canada’s biggest cities have changed dramatically since that employment data was gathered in the third week of September, with COVID-19 curtailing economic activity as it spikes in Montreal, Quebec City, Ottawa, Toronto and Peel Region.
With Ontario announcing business restrictions Friday in the province’s COVID-19 hot spots, the prospect of losing the precarious employment gains of September looms large.
“The country is now faced with new virus cases clearly trending in the wrong direction, threatening to upend the labour market recovery and any momentum that was gained in September,” says CIBC economist Royce Mendes.
A big chunk of the job gains in September came from the hardest hit parts of the pandemic labour market. Accommodation and food services saw an increase of 72,000 positions in September.
Manufacturing, was up 68,000. Arts and culture jobs rose by 56,000 positions. Women, whose employment prospects were pummeled at the beginning of the pandemic, have made up for much of their lost ground.
But some of those sectors are still far, far away from operating at full steam, and they are the most at risk of being hit by the second wave. If schools close down sporadically or en masse, mothers will see another setback. Bars, restaurants, hotels, large public events and anything that brings together people into proximity — as we saw Friday, those are all at the top of the list for regional closures as public health officials try to contain the spread of the virus.
“That is the right thing to do, but it imposes costs,” Finance Minister Chrystia Freeland stated Friday.
How do we make sure the same workers aren’t penalized yet again? The federal government went part way down that road with its big package of new measures on Friday, rejigging the rent subsidy for small businesses so that it’s more direct and effective and expanding small business loans.
Prime Minister Justin Trudeau also mentioned that the government is thinking about additional temporary supports that would be narrowly targeted at local businesses caught up in regional restrictions — a great idea if it comes quickly enough to deal with the rapid contagion.
Bridging businesses and employers is crucial, not just because we are all worse off when our local shops and restaurants fall apart. Just as important is the boost of confidence it can give those people who are still out of work or not getting enough hours to pay the bills.