During the COVID-19 pandemic and resulting recession, the Canadian economy suffered its most rapid period of job loss in history: Canada’s employment rate fell from 62.3% in 2019 to 58.1% in 2020.

Canada’s employment rate largely recovered to pre-pandemic levels in subsequent years, reaching 62.1% in 2023, according to the report, citing data from Statistics Canada (StatCan).

Source: Fraser Institute

The Canadian government has also been better than the United States government when it comes to creating jobs. Whereas the Canadian government is responsible for 46.7% of total job growth from 2019-23, the US government is responsible for just 16.1% of the total job growth in the same period.

“Canada has seen a much higher rate of job growth in the government sector than the private sector in recent years, which is a concerning trend given that job growth and wealth creation in the private sector are needed to finance the activities of governments,” said Eisen, who is co-author of Economic Recovery in Canada before and after COVID: Job Growth in the Government and Private Sectors.