The pandemic has caused a government hiring binge, says Fraser Institute

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Why are many Canadian employers scrambling to fill tens of thousands of jobs? A new study by the Fraser Institute sheds some light on one reason why.

The authors of the concise six-page report examined labour market statistics between February 2020, the start of the pandemic, and July 2022. It reveals that jobs in the government sector have increased by a net 9.4 per cent versus 0.4 per cent in the private sector, including self-employment. “The government sector, not the private sector, is driving job creation in Canada since the onset of the COVID pandemic and recession,” said Ben Eisen, senior fellow at the Fraser Institute and co-author of Comparing Government and Private Sector Job Growth in the COVID-19 Era.

The impact of COVID-19 meant many entrepreneurs took it on the chin. The study said there's been “decimation” among the ranks of the self-employed as shown by the net 214,400 jobs lost since the pandemic began.

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