With a new financial world on the horizon, what changed during covid?
The global pandemic has affected everyone. There’s no doubt about that. And, with global debt growing by $19.5 trillion during that period, we have yet to see the end of its effects. In some cases, you got to take advantage of shockingly low interest rates, but not everyone saw benefits.
Where does that leave the average joe with their financial future post-covid?
Over 3 million jobs were lost during the pandemic. The country saw unemployment raise to 12% by the new year of 2021, which was a new high in recent history. Within this, it hit Ontario reporting the majority of job losses, this saw the country’s largest province, and largest job market hurting more than anywhere else in the country. Keeping this in mind while considering the majority of job losses reported were labor positions, the average Canadian had a rough time.
Where to go next?
With this many people losing their jobs and an increase of debt across all classes like consumer debt, mortgage debt, and many others. What’s the next move for you? There are going to have to be a lot of hard decisions made and harder realities faced. But with this there is also opportunity. The government has slowly but surely removed the funding and aid many required to get back on their feet. But, now with reopenings and even some provinces removing mask restrictions what opportunities are created? Will we see growth in certain sectors? Will those closed-down storefronts be revitalized?
Either way, many will change their career paths. The majority of the jobs lost in recent months were part-time employees meaning the gig economy is going to see a shift. Potentially there will be a new wave of local shops and businesses that will thrive on the mantra perpetuated during the pandemic: shop local. Will there be an influx of money circulating within local communities and a push out of big box stores? Who’s to say, either way something new will happen as those laid off during the pandemic search for work and an increase in new jobs will come.
One easy way to not get stranded in a debt tornado during an economic crisis, like a pandemic, is paying off your debt as fast as you possibly can. Luckily payd helps students and young people do just that. Sign up here to help us crush Canada’s debt crisis.