Claude Lavoie is a contributing columnist for The Globe and Mail. He was director-general of economic studies and policy analysis at the Department of Finance from 2008 to 2023.Last month, the federal government announced its intention to prohibit logging activities in large areas of Quebec to protect caribou populations; a move called irresponsible by the Quebec government because of the negative impact on jobs in small communities.
The costs of job losses can be enormous for workers and are linked to health problems, depression and failing marriages. We’ve seen this before. The economic decline in manufacturing regions in the aftermath of trade liberalization and automation in the 1990s saw Detroit and Southwestern Ontario go from being among the most prosperous to
But there’s no question these structural changes will have long-lasting negative repercussions on some people and their families. Think about workers in their mid-40s with 20 years of work experience who lose their jobs owing to AI, or the inability of their industry to adapt to high carbon pricing. It is difficult to find a job at that age, especially when your experience and skills are related to a sector in decline.
What about enhancing employment insurance? The current EI system is inadequate for workers displaced by structural economic changes. These workers have typically been employed for many years before being laid off and often earn more than the maximum insurable earnings. Going on EI means their income is likely to be more than halved, but their housing and food costs remain the same and they have no certainty on future employment.