Winnipeg active business numbers chart ‘tumultuous time’

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This article was published 14/06/2021 (1930 days ago), so information in it may no longer be current.

Winnipeg’s pandemic-battered economy showed signs of healing a few months ago, before suffering fresh wounds in the latest round of lockdowns.

By February 2021, there were slightly more active businesses in Winnipeg than in January 2020, city economist Tyler Markowsky told council’s innovation and economic development committee Monday.

“We’ve seen a lot of returning to the previous states, with the exception of a few (types of businesses)… The number of active businesses is now greater than it was leading up to the beginning of March 12, 2020,” said Markowsky, noting the date Manitoba detected its first presumptive case of COVID-19.

Winnipeg had 17,863 active businesses in January 2020, which fell to 17,359 in March 2020, and 16,433 in May 2020. The number then rebounded to exceed its pre-pandemic level, reaching 18,027 in February 2021.

During the same period, businesses hit hardest by the pandemic lagged behind in their recovery, Markowsky noted. That group included companies in the arts, entertainment and recreation sectors, as well as those providing accommodation and food services.

Job numbers also appeared to improve. Winnipeg’s three-month average unemployment rate dropped from 10.6 per cent in May 2020 to 7.7 per cent in May 2021, according to Statistics Canada data.

“It’s still relatively high against historical norms… but certainly not what it was last year,” said Markowsky.

By comparison, the unemployment rate was 5.6 per cent in 2019.

In an emailed statement, city spokesman Kalen Qually cautioned the numbers may still fluctuate as the pandemic continues.

“We want to underscore that we are not out of the woods yet, and that there is still uncertainty in these figures into the short term,” said Qually.

Some businesses were again forced to shut their doors months after the total number of active businesses was counted.

Starting May 9, restaurants, bars, fitness centres, VLT centres and salons were among the companies ordered to halt in-person business, while many retailers were required to restrict capacity to 10 per cent.

“There’s very well a chance, since the latest lockdowns, that some additional businesses have had to close (permanently),” said Coun. Jeff Browaty, chairman of the economic development committee.

Browaty said he’s also concerned some companies faced with an extended lockdown period and/or a greatly depleted customer base, such as the Winnipeg airport, could have trouble attracting employees once operations fully resume.

He noted many workers have been forced to find other jobs during the pandemic and may or may not return to their former positions.

“It’s a tumultuous time for people if they’ve had to change careers or jobs… It’s going to be interesting to see, as these other businesses open up, if they will find staff,” said Browaty.

The councillor said he’s hopeful rising vaccination numbers and declining COVID-19 case counts will help soon pave the way for sustained growth.

“There is a hope that businesses and people’s lives will hopefully move back to some degree of normal sooner than later.”

joyanne.pursaga@freepress.mb.ca

Twitter: @joyanne_pursaga