Shutting down most, if not all, non-essential services across Canada will result in massive job losses in the coming weeks as a result of the coronavirus outbreak, says the Conference Board of Canada.
The conference board estimates Canada could lose a cumulative 2.8 million jobs in March and April—nearly 15 per cent of total employment. These estimates are supported by the number of employment insurance claims, which have topped two million over the last few weeks, it said.
“Canada will suffer record job losses in March and April—with lower-wage workers taking the brunt of the hit. The situation is causing us to reassess the economic impact of COVID-19 on the national and regional economies,” said Pedro Antunes, the board’s chief economist.
Antunes offered the following insights on the current situation:
- Industries that average lower wages are over-represented in terms of job losses. Estimates suggest that nearly 16 per cent of total job losses—roughly 444,000 jobs—will be in the full- and limited-service restaurants industry, where wages averaged $386 weekly (including overtime) in 2019;
- Amusement and recreation, personal care, traveller accommodation, and clothing stores together account for another 527,000 lost jobs—industries in which wages averaged just $508 per week in 2019; and
- Overall, low-wage industries—those whose wages are 50 per cent (or lower) of the national average of $1,029 per week –account for 34 per cent of job losses even if they represented about 14 per cent of national employment last year.
