Pointing at job numbers, Canada’s Prime Minister, Justin Trudeau, has been gloating about how Canada’s economy has bounced back from the pandemic.
But has it?
According to a recent survey of jobs in Canada, 85% of the jobs created since February 2020, involved working for the government.
The Hub has more details:
That Canada’s economy fully restored the jobs lost during the pandemic by late 2021 seemed to answer these questions. Headlines and commentaries declared that “Canada’s pandemic jobs recovery has been remarkable” and “Canada’s labour market bounces back.”
The Trudeau government was even more affirmative: its 2021 economic and fiscal update, for instance, boasted that the economy was “roaring back” based on recouping 106 percent of the jobs lost during the pandemic.
Yet these top-level claims require a deeper dive into what’s really behind Canada’s post-pandemic recovery. The data tell us a less favourable story than the prevailing narrative in the media or from the government. Much of Canada’s post-pandemic jobs recovery—indeed, nearly 85 percent since February 2020 — has actually been concentrated in the public sector. We have experienced a G-shaped recovery: a government-centric recovery.
So who exactly is going to pay for those government salaries? You have two choices, debt or taxes, and debt is just delayed taxation.
Added note: Canada lost 43,000 jobs in June 2022, while the US gained 390,000.