Spending patterns in a pandemic

The second phase: a slow and gradual recuperation

After the initial phase, the speed, strength and breadth of recovery are harder to predict. The economy will be affected by what happens with the virus, jobs and incomes, and confidence.

Job growth will be uneven. The hardest-hit sectors—such as restaurants and retail—typically have high turnover, which may make it easier to rehire workers. Still, the recovery may be slower in energy-producing regions that were already struggling.

Women make up the majority of workers in services, so the closures have affected them in particular. Their return to work may also be more difficult because of a lack of childcare.

Some areas, such as travel, in-restaurant dining, and cultural and sporting events, will face a much slower recovery. Since new Canadians contributed to stronger housing markets before the pandemic, less immigration may cause a slower recovery for housing.

News – Bank of Canada