Economic Impact of COVID-19 in Toronto
Nowadays, the impact of COVID-19 on countries’ economic and social lives cannot be neglected. Some organizations are able to make necessary transformations and survive the associated crisis. However, in the majority of cases, negative impacts on economies are observed. In Toronto, Canada, job uncertainty (for small business and self-employed individuals), financial instability, tourism industry (seasonal work), and household debts continue growing. Its progress in 2023 is hard to predict, but, regarding the current situation and the inability to make certain economic and social predictions, provoke a solid background for worries.
As soon as people hear about the coronavirus, they start thinking about the restrictions imposed on their behaviors, work, and social activities. At this moment, the private sector has already lost eight times more jobs compared to the public sector (Clinkard). The labor market undergoes considerable changes because employment opportunities have been decreased, and young specialists have no place to go and demonstrate their skills and knowledge. According to Clinkard, accommodation and food services lose more than 24,000 employees, while business and education services are cut by 18,000-15,000 employees. By 2023, these numbers could change, and even if new opportunities are discovered, the experience within the last few years will be decreased.
It is necessary for the Toronto government to support its unemployed workers and identify social safety needs. During the next three years, the local economy has to be re-shaped in order to understand how to earn and spend without significant losses. High household debts, decreased home sales, and reduced salaries provoke new challenges for the government, social services, and citizens. Therefore, the main economic challenges for Toronto that could lead to crisis will be employment deficit, lack of experts, and local debts in 2023.
Clinkard, John. “Toronto Is Knocked down but not out by COVID-19.” Daily Commercial News, 2020, Web.