Excerpts
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What does this mean?
CIBC says Canada can’t afford to waste women’s working potential, especially as the population ages. The bank found the labor-force participation gap between mothers whose youngest child is under 6 and women without children under 18 has narrowed to 9 percentage points, from 12 in 2019 – a shift it links largely to cheaper daycare. Less time out of work can protect skills and career momentum, which should lift wages over time. But many mothers still work fewer hours or pick flexible jobs to manage interruptions, and that flexibility often comes with lower pay. And because the subsidized system isn’t fully used yet, the biggest gains in lifetime earnings may take longer to show up.
Why should I care?
For markets: A bigger labor pool can support growth.
More affordable childcare can raise labor supply – a tailwind for an aging country.
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