If the unemployment rate remained at 4.3% in June, a relatively low level in Quebec, this result is not necessarily a sign of a healthy economy, given the phenomenon of “great resignation” that would increasingly hit the province.
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“The numbers that make up the ratio [du chômage] do not reflect an economy that is in perfect health,” said Nathalie Elgrably-Lévy, senior economist at the Montreal Economic Institute, in an interview with LCN on Friday.
For Labor Minister Jean Boulet, this situation is a “temporary situation”.
The unemployment rate is a calculation of the number of unemployed relative to the labor force. However, more and more people are leaving the labor market, which means that they are no longer included in the calculation of this quota.
According to the economist, this situation can be explained by the phenomenon of “great resignation” affecting the province and other western countries.
“People are less interested in work for various reasons. They’re retiring from the job market, or they want to work fewer hours, or they’re not interested in promotions,” she said.
“Entering the labor market also involves costs […] and when they do the math, they probably come to the conclusion that if they don’t have a job and have one with the costs involved, it’s better to stay at home,” she added.
Immigration as a solution?
Ms Elgrably-Lévy argued that immigration could be a solution to the labor shortage, but “in a very temporary way”.
“[Si] workers here have less desire to work, it won’t be long before the person who arrived in Canada feels the same incentives and comes to the same conclusions,” she argued.
The same goes for the minister, who reiterated that immigration “is one of the options [mais qu’il] the solutions must be added.
“The labor shortage not only rests on the shoulders of the government, it has become a challenge for the community. In the current context, employers need to improve working conditions, increase wages, take work-life balance measures, integrate new technologies…” said Mr Boulet.