Atlantic Canadian Cities Hit Hard By Pandemic, But Fare Better Than Large Urban Centres
HALIFAX — Atlantic Canadian cities fared better during the Covid-19 pandemic than many of their peers in the rest of Canada, even as rural parts of the region struggled.
A new report from the Atlantic Provinces Economic Council shows rural areas of Atlantic Canada were hit by more job losses than cities and saw their populations dwindle, even as urban areas grew.
The news isn’t fantastic for urban parts of Atlantic Canada, either. However, there are some encouraging economic signs – especially in New Brunswick and Prince Edward Island and especially when compared to other, more prominent Canadian cities.
While APEC says all areas of Atlantic Canada were negatively impacted by the pandemic, “some [regions] have recovered faster than others, with the recovery generally stronger in urban centres.”
This year, jobs disappeared in both urban and rural areas. In the cities, employment is down by about 4 percent, while in rural areas it’s down about 7 percent.
APCE says rural parts of Newfoundland and Labrador were hit particularly hard, with employment plummeting by 9.5 percent. This is due in large part to a construction pause at the West White Rose Project and the shutdown of the Come-by-Chance refinery.
Meanwhile, the Annapolis Valley in Nova Scotia saw nearly 10 percent of its jobs disappear, largely because the region is much more tourism-dependent than other rural areas.
Atlantic cities, meanwhile, are faring slightly better.
PEI and New Brunswick were both quick to contain the first wave of Covid-19 and as a result, were able to reopen their economies earlier. Charlottetown hasn’t seen the same severity of job losses than other cities in the region, while Moncton actually added a few jobs in 2020.
Together, Atlantic cities (which have lost 4 percent of their jobs) are outperforming many larger cities in the country, including Vancouver (which is down 8.4 percent), Edmonton ( down 8.3 percent), and Toronto (down 4.7 percent).
Immigration into Atlantic Canada has been the key factor driving population growth in the region over the past half-decade.
A record 17,900 immigrants came to the region in 2019, which was more than double the 8,300 that landed in 2015.
But rural parts of the province are still seeing their populations shrink, as 86 percent of new arrivals stay in Atlantic Canadian cities.
Across Canada, immigration has been cut in half in 2020, however, the federal government says it will raise its immigration targets over the next three years to compensate.
Net interprovincial migration to the Maritime provinces was over 1,200 in the second quarter of 2020, up from 600 in the same quarter in 2019.
The population growth driven by new immigrants is also one of the main factors impacting big construction projects in Atlantic Canada.
APEC says construction activity has been weaker in 2020 after many projects were put on hold this spring. Non-residential building permits are down in urban areas, and flat in rural areas of the region.
Housing starts are up 3 percent in urban areas of Atlantic Canada and down 3 percent in rural areas.
APEC expects major project spending to increase by only 2 percent in 2021 “as companies will be hesitant to invest.”
Trevor Nichols is a reporter for Huddle in Halifax. Send him an e-mail with your story suggestions: [email protected].