The Care Economy Is Canada’s Untapped Economic Superpower

Why Canada’s economic resilience depends on sustained investment in care

By Siobhán Vipond, Executive Vice-President, Canadian Labour Congress and Mitzie Hunter, President and CEO, Canadian Women’s Foundation 

With global trade in turmoil and economic instability reshaping the world, the Carney government has promised strategic support for key sectors to strengthen Canada’s economy. Without bold, sustained investment in the care economy, those efforts will fall short. 

The inclusion of the care economy in the recently announced Workforce Alliances is a step forward. Still, past decisions like the lapse of the Sectoral Table on the Care Economy—on which we had been tapped to serve—gaps in the latest federal budget, and allowing progress toward national $10-a-day child care to stall, raise serious concerns. 

Any funding directed toward the care economy must be recognized and treated as what it is: an investment in a powerful economic engine, and a foundation that supports every other strategic sector. 

Care work, performed primarily by women, and disproportionately by Indigenous, racialized, immigrant, and migrant women, is what allows the rest of our economy to function and thrive. Without child care, parents can’t work. Without long-term care and home care, families are pushed out of the workforce. Without nurses, teachers, personal support workers, and early childhood educators and assistants, there is no productivity, no innovation, and no economic growth. 

That is why Canada needs a comprehensive federal strategy to support and invest in the care economy.

Paid care jobs generate at least 13% of Canada’s GDP and account for 22% of all jobs. Unpaid care work, such as caring for children, aging parents, or people with disabilities, is worth up to $860 billion, or roughly 37% of Canada’s GDP. That is more than the combined contribution of manufacturing, wholesale, and retail. 

As Canada’s population ages and care needs grow, the care economy is projected to become one of the country’s largest drivers of economic growth and job creation. 

Investments in care deliver real economic gains. Studies show that Québec’s child care system, the most supportive in Canada, generates $1.75 in provincial and federal tax revenue for every dollar invested. That is clear proof of a successful public program.   

Prime Minister Carney has spoken about strengthening Canada’s economy through investment. An effective strategy must recognize that people are our most important asset. That means universal access to affordable, high-quality public and not-for-profit care services so people can work, learn, and live in dignity. It means good jobs with safe working conditions. And it means recognizing care workers—paid and unpaid—as essential to Canada’s economic resilience. 

When the COVID-19 pandemic hit, care workers were hailed as heroes while enduring burnout, chronic understaffing, and the deadly consequences of years of austerity and privatization. Many left the sector. Some became seriously ill. Some lost their lives. We cannot forget these consequences, nor can we move forward without addressing their root causes. 

Six years later, demand for care continues to rise, while workforce shortages deepen. Women continue to bear the burden, scaling back paid work, turning down promotions, or leaving the workforce altogether to fill gaps in child care, elder care, and disability supports. 

Now is the time for ambitious, nation-building conversations about the care economy as a foundation for how Canada can weather the multiple economic crises at our doorstep, including the uncertainty created by a rapidly shifting global economic order. 

Canada’s unions and women’s rights organizations are ready and willing to partner with this government to strengthen Canada’s economic resilience and independence through a visionary, world-class care investment strategy. 

To arrive there, Canada needs a Care Economy Commission: a coordinated, cross-sector initiative mandated to develop concrete recommendations to grow the care economy sustainably, ensure decent and dignified jobs with livable wages across all care sectors, strengthen protections and fairness for caregivers, and guarantee access to care for everyone in Canada. 

If this government truly intends to fortify Canada’s economic sovereignty, it must begin where real economic strength starts: with care. 

Women’s economic justice and Canada’s economic security—two sides of the same coin—depend on it.