The short-term economic consequences of COVID-19: Occupation tasks and mental health in Canada

In this paper, we study the effect of COVID-19 on the labour market and reported mental health of Canadians. To better understand the effect of the pandemic on the labour market, we build indexes for whether workers: (i) are relatively more exposed to disease, (ii) work in proximity to co-workers, (iii) are essential workers and (iv) can easily work remotely. Our estimates suggest that the impact of COVID-19 was significantly more severe for workers that work in proximity to co-workers and those more exposed to disease who are not in the health sector, while the effects are less severe for essential workers and workers that can work remotely. Last, using the Canadian Perspective Survey Series, we observe that reported mental health is significantly lower among some of the most affected workers such as women and less-educated workers. We also document that those who were absent from work because of COVID-19 are more concerned with meeting their financial obligations and with losing their job than those who continue working outside their home.

Automated summary

This paper examines the impact of COVID-19 on the Canadian labor market and the reported mental health of Canadians. The study finds that workers who are in close proximity to co-workers and those who are more exposed to disease outside the health sector are more severely affected. However, essential workers and those who can work remotely experience milder effects. Additionally, the study shows that women and less-educated workers, who are among the most affected, report lower levels of mental health. Workers who were absent from work due to COVID-19 show greater concern about meeting financial obligations and job security compared to those who continue working outside their home.