Canada Midyear Outlook
Economic Indicators Divergent After Third Wave of Lockdowns; Property Owners Optimistic for a Strong Second Half
Additional outbreak stunted jobs recovery. A third wave of the virus in the spring induced greater restrictions in some provinces. This temporarily weighed on the country’s recovery in the first half. Canada shed roughly 275,000 jobs across the months of April and May, many of which were part-time roles in the service industries. The depletion of part-time staff is usually not career-altering, and thus has less of a negative economic ripple effect as these positions can be recovered quickly. This was the case as provinces reopened in early summer, leading to the addition of 230,700 roles in June, approximately 84 percent of what was lost in the previous two months. Minimizing the health threat is also permitting more firms to bring employees into the office, aiding the sectors’ recovery. Nevertheless, in the first two weeks of July, Google mobility data revealed that daily commutes to workplaces were still more than 30 percent below the pre-pandemic level on average.