The COVID‐19 Era—Influencers of Uneven Sector Performance: A Canadian Perspective

Abstract

The study estimates the impact of COVID‐19 on the labour market outcomes of major industrial sectors in Toronto, the largest urban centre in Canada. Using various economic data, we classify the sectors as distressed, stable, and those requiring ongoing monitoring. Furthermore, we estimate the expected impact of the pandemic shock using the Impulse Response Function (IRF) method. The results show an uneven impact of the pandemic with adverse outcomes for low‐paying front‐facing sectors, such as accommodation & food services and manufacturing. The post‐pandemic projections show lingering negative implications for various sectors. The insights are helpful for policy recommendations, such as targeted responses to address the declines and structural changes in these sectors because of increasing technology adoption and the resulting labour market challenges.