City report underscores economic hit of pandemic

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This article was published 10/12/2020 (1940 days ago), so information in it may no longer be current.

Unemployment remains high, retail sales have dropped and some Winnipeggers are being hit harder than others.

A recent update from the city’s economist shows the financial fallout from the COVID-19 pandemic continues to hinder the Winnipeg economy.

Winnipeg’s seasonally unadjusted unemployment rate was 7.8 per cent in November, up from 4.9 per cent during the same month in 2019. Year-to-date retail sales, up to September, fell 1.7 per cent overall, including a 29 per cent drop for clothing and accessory stores.

Tyler Markowsky, the City of Winnipeg’s economist, stressed the effect of the downturn is believed to vary among certain groups. Markowsky said recent national data showed a slower recovery in employment for Indigenous Canadians compared with non-Indigenous citizens.

“We’re beginning to see some research indicating that these types of shocks have consistent disproportionate impacts,” he said.

The report noted women face a slower economic recovery, a group Markowsky said has lost more working hours than their male counterparts.

Coun. Markus Chambers urged all businesses to seek diversity among their staff, to help ensure no groups of employees are left behind in the recovery from COVID-19.

“It’s an opportunity to increase your base. When I walk into a business that is service-based and I see that diversity that’s there, I know that they are paying attention to my needs, specifically, based on representation in their workforce,” said Chambers, who is of Jamaican descent.

Markowsky said small businesses are among those hardest hit by the pandemic and may be less able to take on debt to stay afloat.

Coun. Jeff Browaty (North Kildonan), chairman of council’s economic development committee, said one aspect stood out to him: “There are really people in this community who are being affected more than others.” 

He said the city’s preliminary budget proposal to waive 2021 late penalties for business and property taxes paid up to three months past deadline should help assist those struggling with job and revenue losses.

Browaty said he expects a newly proposed Winnipeg office of economic development, which awaits budget approval, would help the city attract new businesses and jobs.

“We’re positioning ourselves for post-COVID. We’re trying to make sure that economic development opportunities can come to Winnipeg,” he said.

The budget proposes to spend $500,000 on the office.

Joyanne.pursaga@freepress.mb.ca

Twitter: @joyanne_pursaga