Inequality Deepens: Canada’s Two-Year Household Income and Employment Outlook

This quarterly economic forecast presents the medium-term outlook for the Canadian economy. This release focuses on household income and employment. For an overview of all major components of the economy, go to the Canadian Outlook main page.

Document Highlights

• The jobs recovery has slowed significantly in the face of a resurge in COVID-19 cases and the reinstatement of restrictions.
• The employment outlook across industries has become increasingly polarized, with clear winners and losers.
• The jobs recovery is proceeding unevenly across the population, with a slower return to employment for women.
• This unevenness threatens to worsen inequalities within Canadian society.
• As the disruption continues, long-term unemployment threatens to leave scars on the workforce.
• Increased immigration in the coming years will be important to counter population trends and labour shortages, especially given the recent impacts of the COVID-19 pandemic.