Roughly five per cent of the Canadian labour force, or one million people, are now out of work because of COVID-19. A further 10 per cent worked less than half of their usual hours, none in some cases, despite technically remaining employed. In Toronto — which has experienced an unprecedented employment boom over the past five years — at least 25 per cent of all jobs have now been wiped out.
Almost seven million to date, more than a third of the number of Canadians who had a job in mid-March have filed for the Canada Emergency Response Benefit
Macdonald’s analysis shows that between February and March, a third of all jobs paying less than $14 an hour were either eliminated or had their working hours decrease by at least half.
In a recent note, economist David Rosenberg warned that this income disparity could have far-reaching effects.
“First, from an aggregate demand standpoint, these low-income people spend most of what they earn,” he said. “Second, it will not go unrecognized from a political standpoint how the ‘have-nots’ in this crisis fell even further behind the ‘haves.’ This will have a future impact on taxation policy; if not, we can expect some sort of civil unrest.”