The Impact of High-Benefit Policies on the Canadian Labor Market During the COVID-19 Pandemic

Jiajun Dai ()
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Jiajun Dai: University of Toronto Scarborough, Major of International Development

A chapter in Proceedings of the 2025 International Conference on Hybrid Commerce, Human Capital, and Economic Dynamics (ICHCH 2025), 2026, pp 709-717 from Springer

Abstract: Abstract This paper studies the impact of the Canadian government’s transition from a liberal welfare policy model to a social democratic welfare policy framework on the domestic labor market, paying special attention to the welfare system with high coverage and low conditions implemented during the COVID-19 epidemic (2020-2022). The purpose of this study is to evaluate whether the social democratic welfare system with high welfare and low barriers is still feasible in Canada’s current labor market environment, especially considering its socio-economic impact after the pandemic. For example, economic stimulus benefits aimed at enhancing market vitality have inadvertently contributed to inflation in Canada. Similarly, government assistance aimed at making a living during the epidemic period has gradually become an obstacle to the return of labor force in the post-coronavirus pneumonia era. This paper studies Canada’s welfare reform and its social impact in the recovery period after the pandemic, and puts forward feasible solutions, with a view to promoting the smooth transformation of the welfare system, alleviating the dual social pressures of inflation and labor shortage, and helping Canada’s labor market achieve a more balanced and sustainable development.

Keywords: High-Benefit Policies; Canadian Labor Market; COVID-19 Pandemic (search for similar items in EconPapers)
Date: 2026
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DOI: 10.2991/978-2-38476-585-0_80

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