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Unemployment in Canada: A report from the Survey on Employment and Skills

The COVID-19 pandemic disrupted employment in many ways and reshaped patterns of work. This report works to better understand the conditions that impact unemployment and that keep individuals from finding a job that fits. It focuses on unemployment examining those who are unemployed and looking for work and those who are unemployed and not looking for work. This distinction highlights concerns around widespread discouragement as the root cause of disengagement with the workforce.

Understanding the dynamics that lead to long-term unemployment are critical to inform strategies to develop skills and create opportunities for all. Specifically, the purpose of this analysis was to further investigate the following research questions: Which demographic groups are more likely to experience long-term unemployment? How do those who are unemployed and looking for work differ from those that are unemployed and not looking for work? Do we see demographic differences based on variables such as educational attainment, physical health or disability status?What are the reasons why some unemployed individuals are not looking for work?

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Key Insights

Individuals with longer durations of unemployment (over 15 months) are more likely to be over the age of 35, more likely to say that their physical and mental health are fair or poor, more likely to have a disability and less likely to have a postsecondary education.

Extended unemployment significantly impacts lifelong earnings potential. As individuals spend more time out of work, they miss out on career advancements and salary increases, which cumulatively affect their financial stability and long-term economic security

The most common type of reason for not looking for work is related to health. According to the survey results, 63% of the respondents report that they are not looking for a job due to physical or mental health issues.

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