According to new data from the Toronto Region Board of Trade, the city’s downtown core is recovering more slowly than the rest of the GTA and the country.
According to the agency’s Recovery Tracker, Toronto has a higher unemployment rate than Montreal and Vancouver. As fewer people come to the city’s downtown core for work, the lodging and food-service industries continue to struggle.
The COVID-19 pandemic has hollowed down Toronto’s Metropolitan Centre, according to the Board of Trade, while the outer-lying Goods Production and Distribution District has witnessed a faster return of activity.
“A high-density environment and clustering of companies, institutions, and talent – including the concentration of white-collar workers – have historically been key enablers of the growth and prosperity seen in the downtown core. The same characteristics have led to the MC experiencing the worst of the pandemic-induced economic downturn,” said the Board of Trade October 1st report.
Trips to the downtown core have decreased, as has expenditure within the district, as a result of the epidemic. Vehicle trips were down 40% in July 2021 compared to July 2019, and in-person consumer spending is likewise down 40% from the peak of the pandemic.
According to the Board of Trade, 67 percent of workers in downtown Toronto may work remotely, leading in a huge exodus from the area. This is similar to what has happened in the United States, where places with higher qualified individuals who have shifted to remote employment have witnessed bigger declines in consumer spending.
This is similar to what has happened in the United States, where places with higher qualified individuals who have shifted to remote employment have witnessed bigger declines in consumer spending.
The GTA, Hamilton, and Waterloo are all part of Ontario’s wider Innovation Corridor, according to the Recovery Tracker. The region accounts for a quarter of Canada’s national Gross Domestic Product, according to the Board of Trade (GDP).
The entire corridor today has about 250,000 fewer jobs than it was expected to have by this time if the pandemic hadn’t occurred.
“While high-skilled service industries experienced the least impact since the start of the pandemic, their shift to remote work has had widespread ripple effects on the many local businesses,” stated the report.