Where have all the workers gone? Montreal economist explains
Restaurant staff are scrambling to keep up with orders, pilots are unloading bags off planes at airports, hotels are at half-capacity and hospital ERs are closing for the summer.
The reason? Labour shortage.
Where did all the workers go?
Concordia economics professor Moshe Lander says the CERB payments may have created a disincentive to want to work though it's not the full answer.
"Even though the payments have stopped, it takes a little while for people to realize that their bank accounts have emptied," he said. "The other part of it is that the wages people are getting have stagnated, and with high inflation rates, the purchasing power of those wages has fallen. That makes it really attractive for employers to want to hire workers, but it makes it unattractive for workers to want to go to work, and that's why you end up with a shortage."
Employment rates remain very high, but people are not available to fill jobs, which is puzzling economists like Lander, but the trend of baby boomers retiring during the pandemic may contribute to fewer people to fill jobs.
Low-paying jobs may also not be as attractive for Gen Z or milienials, who see that the pay with little benefits they receive will not be enough to purchase a car or house, whose prices have skyrocketed.
Lander said the trend of employers offering more than just an hourly wage, which was seen before the pandemic, is likely to continue.
"It's one of those things that employers are going to have to start thinking about," he said. "What is it that workers really want and make sure that find a way to provide it."
-- Watch the full interview with CTV News anchor Amanda Kline above.
CTVNews.ca Top Stories
Several flight attendants from Pakistan have gone missing after landing in Canada
Multiple flight attendants from Pakistan International Airlines have abandoned their jobs and are believed to have sought asylum in Canada in the past year and a half, a spokesperson for the government-owned airline says.
BREAKING Ottawa public school board, 3 Toronto-area school boards launch lawsuit against social media giants
The Ottawa-Carleton District School Board and three school boards in the Toronto-area have launched legal action against social media giants, accusing them of "disrupting students' fundamental right to education."
Doctors visiting a Gaza hospital are stunned by the war's toll on Palestinian children
An international team of doctors visiting a hospital in central Gaza was prepared for the worst. But the gruesome impact Israel’s war against Hamas is having on Palestinian children still left them stunned.
Crypt near Marilyn Monroe and Hugh Hefner could fetch US$400,000 at auction
A one-space mausoleum crypt in the vicinity of Marilyn Monroe and Hugh Hefner will go on auction Saturday, when it is expected to reach between US$200,000 and $400,000.
This Toronto restaurant is no longer accepting tips. Here's how it's going
A Toronto restaurant introduced a surprising new rule that reduced the cost of a meal and raised the salaries of staff – tipping is no longer accepted.
A Nigerian woman reviewed some tomato puree online. Now she faces jail
A Nigerian woman who wrote an online review of a can of tomato puree is facing imprisonment after its manufacturer accused her of making a “malicious allegation” that damaged its business.
Premiers not being truthful about carbon tax, Trudeau says while sparks fly in Ottawa
Prime Minister Justin Trudeau says Conservative premiers across the country are 'not telling the truth' when it comes to the carbon tax. Trudeau's comments came as fresh sparks were flying in Ottawa at a recalled House of Commons committee.
Far North police 'dispatch' polar bear stalking schoolyard
Police and local hunters in an Ontario Far North First Nation community have “dispatched” a polar that was showing abnormal behaviour and treating the area as a hunting ground.
What new auto insurance reforms will mean for Ontarians, if they get introduced
Ontario has among the highest rates for auto insurance premiums in Canada -- just below Alberta and Nova Scotia -- however, the introduction of an insurance reform in the provincial budget could soon lower prices.