The COVID-19 pandemic sent shockwaves around the globe, and Canada was no exception. While the focus has shifted to recovery, the lasting impacts on the economy and society are undeniable. This blog tells about how COVID-19 disrupted Canada and how we’re steering the new normal.
Economic Downturn and Uneven Recovery
Canada fell into recession as lockdowns and social distancing measures incapacitated economic activity. Businesses shuttered, millions lost jobs, and unemployment increased by a staggering 13.5% in May 2020, the highest since the 1970s [Wikipedia: Economic impact of the COVID-19 pandemic in Canada]. The tourism and hospitality industries were particularly hard hit as travel restrictions brought everything to a standstill.
The good news is that Canada’s economy has rebounded significantly. However, the recovery has yet to be uniform across all sectors. While some industries, like construction and manufacturing, have bounced back to pre-pandemic levels, others, like retail and tourism, continue to struggle [Statistics Canada: Research to Insights: A look at Canada’s economy and society three years after the start of the COVID-19 pandemic].
Social Impacts: A Time of Change
The pandemic wasn’t just an economic crisis; it was a social one too. Lockdowns and social isolation measures disrupted routines, strained mental health, and exacerbated existing social inequalities. Essential workers, many of whom were racialized minorities, faced increased health risks while keeping the country running [NCBI: Differential Impacts during COVID-19 in Canada].
On the other hand, the pandemic also fostered a spirit of community and innovation. Canadians adapted to remote work and learning, highlighting the need for better digital infrastructure. There was also a surge in support for local businesses and a renewed appreciation for frontline workers.
Looking Ahead: Building a Resilient Future
Canada’s journey out of the pandemic is ongoing. The economic scars are gradually healing, but challenges like inflation and labour shortages persist. Socially, the pandemic has exposed vulnerabilities in our systems, but it has also sparked conversations about building a more equitable and resilient society.
As Canada moves forward, we must focus on:
- Supporting vulnerable populations: This includes ensuring affordable housing, accessible healthcare, and robust social safety nets.
- Investing in a strong healthcare system: The pandemic highlighted the importance of a well-funded and prepared healthcare system.
- Building a digital economy: The pandemic accelerated the shift towards a digital world. Investments are needed to bridge the digital divide and ensure everyone has access to the tools they need to succeed.
Tight labour market conditions triumph as unemployment rates begin to decline.
In late 2022, there were fewer job openings, but still quite a lot. In December, for example, there were around 850,000 job openings, which is less than the highest number in May 2022, when there were just over 1 million openings.
Job openings in healthcare and social assistance fields have been increasing. In December 2020, there were about 150,000 job openings. Nearly half of the job openings in healthcare in the third quarter remained unfilled for at least 90 days or more, showing that it’s been hard to find people to fill these positions.
Wrapping Up
The COVID-19 pandemic was a period of great challenge, but it also presented opportunities for growth and change. By learning from the past and working together, Canada can build a stronger and more resilient future for all. Overall, the COVID-19 pandemic has brought about significant challenges for the Canadian economy and society. Still, it has also prompted innovation, resilience, and a sense of community solidarity in facing these unprecedented circumstances.