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The American Workforce Is Sick – The Atlantic

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Since the COVID-19 pandemic began eight months ago, politicians in Washington, particularly Republicans, and particularly Republicans in the White House, have argued that it has an either-or relationship with the economy: Either Americans tolerate some amount of viral spread and enjoy a more vibrant economy, or Americans shut down and watch the economy fail.

That was always a false dichotomy, not least because of the way the novel coronavirus is sickening the American body politic. The virus’s most direct impact on the economy and the workforce has been strangely overlooked. It is killing workers, slowing them down, pushing them to take leave from their jobs, and causing them to drop out of the labor force, hurting businesses, ruining family finances, and slowing the recovery.

The number of confirmed cases now stands at more than 9 million; roughly 225,000 people are dead and an untold number are suffering from long-term, debilitating symptoms. Research from the Integrated Benefits Institute shows that the coronavirus quintupled the number of workers claiming short-term disability benefits due to respiratory conditions from February to March; many employers are seeing significantly more disability and leave claims, costing them something like $20 billion and counting. (That is true despite job losses reducing the number of individuals eligible for benefits, and despite the fact that claims due to workplace injuries and diseases other than the coronavirus have fallen.)

Even mild cases of COVID-19 have affected workers’ ability to do their jobs and enjoy their lives, sometimes causing miserable knock-on effects on their finances. Benjamin Walmer is a New Jersey chef and architect specializing in kitchen and restaurant design, who contracted a minor case of COVID-19 in March. “I’ve had colds that had worse symptoms,” he told me. Nevertheless, he said, the illness affected his ability to hold meetings, visit people’s homes and businesses, and find new clients. “Relationships are everything in this industry, and there’s a great deal of intimacy around design,” he said. “There were these multiple points of disruption that compounded one another.”

More severe cases have had more severe effects, for workers and the companies that employ them. Yvonne Evans has been a nurse for three decades, and runs a surgical clinic at the John D. Dingell Veterans Administration Medical Center in Detroit. She contracted a severe case of COVID-19 in the spring and is a long-hauler: She still has fatigue and shortness of breath half a year later. “I know what is happening to me; that’s the scary part,” she told me. “I know vasoconstriction when I see it.”

She now uses a mobility scooter to get around the hospital, and struggles to work as she used to. She said she was contemplating retiring early, although that would be a significant financial hit to her family. “Do I need to go on disability? I don’t know,” she said. “I’m trying to see how much damage it has done to my lungs, because the lungs do regenerate tissue.” Losing highly experienced professionals like Evans is straining the health system and the broader workforce. More than 200,000 health workers have contracted COVID-19 this year, and roughly 1,000 have died.

Other essential workers are bearing extraordinary risk, too. Francis Robateau was a veteran night manager for a Southern California grocery store, restocking shelves and managing inventory. Unable to both practice social distancing and keep the store filled with goods, he caught COVID-19. “I started having massive migraines,” he told me, adding that he still struggled with neurological symptoms and headaches weeks later. Concerned that his employer did not take safety protocols seriously enough, he ended up quitting. “I haven’t been making any income,” he told me. “My partner has been taking care of it—her mindset is ‘No, dude, you’re not feeling 100 percent; there’s no reason for you to take a full-time job.’”

For some, sickness has been catastrophic. Paz Aguilar, who worked at two fast-food restaurants in Oakland, California, ended up in a medically induced coma after contracting COVID-19, along with half a dozen of her co-workers. A stroke left her partially paralyzed. “I’d like to go back to work,” she told me, speaking in Spanish. But she cannot imagine doing so. That has put her and her extended family at severe economic risk, and increased the caretaking burden on her relatives.

America’s patchy paid-leave and health-care infrastructure, as well as its low labor standards, have exacerbated the problems created by the pandemic. Workers near the poverty line feel they have no choice but to keep working, afraid of losing their jobs if they stay at home to quarantine or to convalesce. Sick leave would “unquestionably” help stem the virus’s spread and support the economy, says Erika Moritsugu of the National Partnership for Women & Families, who is herself struggling with a month-long bout of COVID-19 that has left her with fatigue, aches and pains, nausea, and the inability to taste.

Research suggests that the thin, limited emergency sick-leave provisions passed by Congress this spring nevertheless prevented more than 400 infections a day. Paid leave is a “must-have, not a nice-to-have,” Moritsugu told me in an email. “It is a critical component of our economic and public health recovery. Workers who get sick must be able to stay home to recover. And in order to stay connected to the workforce, workers shouldn’t have to leave their jobs to care for a family member or recover from an illness. If we are going to get this virus under control, we need to allow people the option of taking time off.”

Sick leave and universal health-care coverage might also help close the disparities that COVID-19 is widening: between high-wage and low-wage workers, between men and women, between white workers and Black and Latino workers. “This pandemic laid bare that our system failed,” Dawn Huckelbridge, the director of the Paid Leave for All campaign, told me, noting that many lower-income workers were unaware that Congress passed emergency benefits at all. “Our individualistic, go-it-alone approach means women, low-income workers, and people of color were the ones who absorbed the shock to the system, but it impacts every one of us.”

That shock is certain to be long-lasting. America’s COVID-19 disaster has left thousands ailing, struggling, and managing the fallout of a global pandemic alone; businesses and households have been forced to shoulder a burden a competent government would manage. Dead workers, sick workers, disabled workers, workers forced out of the workforce: This is one of the virus’s worst legacies, and it proves that there is no saving the economy without saving the people who make it up.

We want to hear what you think about this article. Submit a letter to the editor or write to letters@theatlantic.com.

Annie Lowrey is a staff writer at The Atlantic, where she covers economic policy.

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Canada’s unemployment rate holds steady at 6.5% in October, economy adds 15,000 jobs

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OTTAWA – Canada’s unemployment rate held steady at 6.5 per cent last month as hiring remained weak across the economy.

Statistics Canada’s labour force survey on Friday said employment rose by a modest 15,000 jobs in October.

Business, building and support services saw the largest gain in employment.

Meanwhile, finance, insurance, real estate, rental and leasing experienced the largest decline.

Many economists see weakness in the job market continuing in the short term, before the Bank of Canada’s interest rate cuts spark a rebound in economic growth next year.

Despite ongoing softness in the labour market, however, strong wage growth has raged on in Canada. Average hourly wages in October grew 4.9 per cent from a year ago, reaching $35.76.

Friday’s report also shed some light on the financial health of households.

According to the agency, 28.8 per cent of Canadians aged 15 or older were living in a household that had difficulty meeting financial needs – like food and housing – in the previous four weeks.

That was down from 33.1 per cent in October 2023 and 35.5 per cent in October 2022, but still above the 20.4 per cent figure recorded in October 2020.

People living in a rented home were more likely to report difficulty meeting financial needs, with nearly four in 10 reporting that was the case.

That compares with just under a quarter of those living in an owned home by a household member.

Immigrants were also more likely to report facing financial strain last month, with about four out of 10 immigrants who landed in the last year doing so.

That compares with about three in 10 more established immigrants and one in four of people born in Canada.

This report by The Canadian Press was first published Nov. 8, 2024.

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Health-care spending expected to outpace economy and reach $372 billion in 2024: CIHI

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The Canadian Institute for Health Information says health-care spending in Canada is projected to reach a new high in 2024.

The annual report released Thursday says total health spending is expected to hit $372 billion, or $9,054 per Canadian.

CIHI’s national analysis predicts expenditures will rise by 5.7 per cent in 2024, compared to 4.5 per cent in 2023 and 1.7 per cent in 2022.

This year’s health spending is estimated to represent 12.4 per cent of Canada’s gross domestic product. Excluding two years of the pandemic, it would be the highest ratio in the country’s history.

While it’s not unusual for health expenditures to outpace economic growth, the report says this could be the case for the next several years due to Canada’s growing population and its aging demographic.

Canada’s per capita spending on health care in 2022 was among the highest in the world, but still less than countries such as the United States and Sweden.

The report notes that the Canadian dental and pharmacare plans could push health-care spending even further as more people who previously couldn’t afford these services start using them.

This report by The Canadian Press was first published Nov. 7, 2024.

Canadian Press health coverage receives support through a partnership with the Canadian Medical Association. CP is solely responsible for this content.

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Trump’s victory sparks concerns over ripple effect on Canadian economy

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As Canadians wake up to news that Donald Trump will return to the White House, the president-elect’s protectionist stance is casting a spotlight on what effect his second term will have on Canada-U.S. economic ties.

Some Canadian business leaders have expressed worry over Trump’s promise to introduce a universal 10 per cent tariff on all American imports.

A Canadian Chamber of Commerce report released last month suggested those tariffs would shrink the Canadian economy, resulting in around $30 billion per year in economic costs.

More than 77 per cent of Canadian exports go to the U.S.

Canada’s manufacturing sector faces the biggest risk should Trump push forward on imposing broad tariffs, said Canadian Manufacturers and Exporters president and CEO Dennis Darby. He said the sector is the “most trade-exposed” within Canada.

“It’s in the U.S.’s best interest, it’s in our best interest, but most importantly for consumers across North America, that we’re able to trade goods, materials, ingredients, as we have under the trade agreements,” Darby said in an interview.

“It’s a more complex or complicated outcome than it would have been with the Democrats, but we’ve had to deal with this before and we’re going to do our best to deal with it again.”

American economists have also warned Trump’s plan could cause inflation and possibly a recession, which could have ripple effects in Canada.

It’s consumers who will ultimately feel the burden of any inflationary effect caused by broad tariffs, said Darby.

“A tariff tends to raise costs, and it ultimately raises prices, so that’s something that we have to be prepared for,” he said.

“It could tilt production mandates. A tariff makes goods more expensive, but on the same token, it also will make inputs for the U.S. more expensive.”

A report last month by TD economist Marc Ercolao said research shows a full-scale implementation of Trump’s tariff plan could lead to a near-five per cent reduction in Canadian export volumes to the U.S. by early-2027, relative to current baseline forecasts.

Retaliation by Canada would also increase costs for domestic producers, and push import volumes lower in the process.

“Slowing import activity mitigates some of the negative net trade impact on total GDP enough to avoid a technical recession, but still produces a period of extended stagnation through 2025 and 2026,” Ercolao said.

Since the Canada-United States-Mexico Agreement came into effect in 2020, trade between Canada and the U.S. has surged by 46 per cent, according to the Toronto Region Board of Trade.

With that deal is up for review in 2026, Canadian Chamber of Commerce president and CEO Candace Laing said the Canadian government “must collaborate effectively with the Trump administration to preserve and strengthen our bilateral economic partnership.”

“With an impressive $3.6 billion in daily trade, Canada and the United States are each other’s closest international partners. The secure and efficient flow of goods and people across our border … remains essential for the economies of both countries,” she said in a statement.

“By resisting tariffs and trade barriers that will only raise prices and hurt consumers in both countries, Canada and the United States can strengthen resilient cross-border supply chains that enhance our shared economic security.”

This report by The Canadian Press was first published Nov. 6, 2024.

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