This allowed the Canadian and other economies to bypass many of the pain points that often follow recessions—setting the scene for a historic bounce back in labour markets. With many students in the audience, I’ll also stress that young people— especially those who recently entered the labour market—have been key beneficiaries of this.
In past recessions, scarring effects meant that people entering the labour market often took years to catch up to other cohorts.6 I certainly don’t want to imply that coming into the labour market over the past few years has been easy. But the rapid recovery and abundant employment opportunities have meant that new entrants are better positioned to find jobs that match their qualifications.