Thousands of employed Canadians are working ineffectively.
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Thousands of employed Canadians are working ineffectively.

Thecryptoinsider0

Introduction

The COVID-19 pandemic has left its mark on every aspect of life in Canada, including the labor market. While some sectors have recovered more quickly than others, widespread recovery remains elusive. Among the most significant challenges faced by Canadian workers is underemployment—those who work fewer hours than desired or without benefits despite being employed.

Underemployment Statistics

  • Hidden Unemployment: Millions of workers are employed but not registered as such due to casual labor arrangements or part-time work.
  • Furloughed Workers: Many employees have been furloughed, unable to return to their jobs while businesses scale back operations.
  • Zero-Hour Contracts: A growing number of workers operate under zero-hour contracts, often struggling to make ends meet.

Contributing Factors

Economic Measures

  • Emergency Wage Subsidy (EWS): Implemented by the government to support businesses during the pandemic, this program provides financial relief to furloughed and active employees. However, its reliance on businesses returning to pre-pandemic levels raises concerns about long-term sustainability.

Behavioral Factors

  • Employee Incentives: The EWS often discourage employers from bringing workers back, as companies may never return to normal operations post-pandemic.

Personal Stories and Expert Opinions

  • Brendon Bernard (Indeed Canada): Discusses how underemployment stems from workplace closures or restrictions, child care issues, and health concerns.
  • Amir Barnea (HEC Montreal): Critiques the EWS, arguing it may disincentivize employers from rehiring displaced workers.

Impact on Specific Sectors

Restaurants and Bars

  • ** holiday season**: Job losses are particularly evident in these sectors during the busy season. For instance, event manager Niesa Silzer experienced this firsthand, with no events scheduled for the current year.

Entrepreneurs

  • The pandemic has especially affected small businesses run by entrepreneurs, leading to significant reductions in hours and profits.

Conclusion

Underemployment remains a pressing issue in Canada’s post-pandemic recovery. While measures like the EWS aim to support workers and businesses, their long-term impact is uncertain. Addressing this challenge will be crucial for both Canadian workers and the economy as a whole.

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