Canada’s four biggest cities — Vancouver, Toronto, Montreal, and Calgary — accounted for 44 percent of output in 2020.
Canada’s big cities took the toughest knocks during the pandemic, as families fled to the suburbs and beyond and office buildings emptied out.
Yet despite concerns about “big city cores getting hollowed out,” the reality is they still drive Canada’s economic activity, says a report from Bank of Montreal economists Robert Kavcic and Erik Johnson.
The economists say Canada’s four biggest cities — Toronto, Montreal, Vancouver, and Calgary — have bounced back from the pandemic shock — albeit with a few bumps and scrapes.
Employment in these cities is now 8 percent higher than in 2019, compared to 6 percent for the rest of Canada, the report says.
Some industries such as restaurants, hotels, and other direct services are still below their past peaks, but surging employment in other areas has made up for it.
Professional and technical industries, education, finance, and public administration have all soared above pre-COVID levels, suggesting that big cities are not being hollowed out, but the sources of growth are reshaping, said the economists.
“In an economy where knowledge sector jobs are increasingly driving employment growth, cities will remain important engines of economic activity,” they said.
FAQ (Frequently Asked Questions) about Canada’s Big Cities Driving the Economy
What are the four biggest cities driving Canada’s economy? The four cities are Vancouver, Toronto, Montreal, and Calgary.
What percentage of Canada’s output do these cities account for? According to the report, these cities accounted for 44% of Canada’s gross domestic product (GDP) in 2020.
How has employment in these cities changed since the pandemic? Employment in these cities has rebounded, with an 8% increase compared to 2019, outpacing the rest of Canada.
Which industries have seen the most significant employment growth in these cities? Industries such as professional and technical services, education, finance, and public administration have experienced notable employment growth.
What challenges do these cities face despite their economic importance? Challenges include housing affordability, stress on infrastructure due to population growth, and lower weekday activity in downtown cores due to remote and hybrid work arrangements.
Conclusion:
Despite facing challenges such as housing affordability and shifts in work dynamics, Canada’s big cities remain vital drivers of the country’s economy. The rebound in employment and continued population growth underscore their resilience and importance in Canada’s economic landscape. While there are hurdles to overcome, these cities are poised to play a significant role in shaping Canada’s future economic growth.
