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Bank of Canada warns of slower recovery for women, youth, low-wage workers

Coronavirus: Economic recovery ‘off to a strong start,’ still have a long way to go, Bank of Canada governor says
Economic recovery ‘off to a strong start,’ still have a long way to go, Bank of Canada governor says.

The governor of the Bank of Canada warns the slower rebound facing women, youth and low-wage workers could pose a threat to a broader economic recovery from the COVID-19 pandemic.

READ MORE: Bank of Canada keeps key rate at 0.25%, sees ‘slow and choppy’ recovery ahead

Tiff Macklem says uneven recessions that affect some workers and sectors more than others tend to be longer and leave a larger mark on the labour market.

Coronavirus: Housing activity expected ‘to moderate’ as economic recovery continues, Bank of Canada governor says
Coronavirus: Housing activity expected ‘to moderate’ as economic recovery continues, Bank of Canada governor says

He notes in a speech to the Canadian Chamber of Commerce that women and young people are more likely now to be permanently laid off from their jobs due to the pandemic. People permanently laid off take on average twice as long to return to work as people on temporary layoff, Macklem says, risking long-term damage to their jobs prospects and a lasting drag on earnings specifically for youth.

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Macklem says the central bank is doing everything it can to support growth and get people back to work. He adds that getting people back to work is the best way to improve economic outcomes over time, noting that uneven outcomes for some can lead to poorer outcomes for all.