The COVID-19 pandemic has not only affected global health, but has had a negative impact on the world economy. In Canada, some people are temporarily out of work while others are completely losing their jobs. The resulting unemployment rate is higher than expected. Studies show that government assistance has helped Canadian citizens in the short term to maintain mortgage payments, but if this trend continues, then mortgage rates and bond yields could be severely impacted in the future.
- While some people are currently still okay with their employment, they will be laid off in the future as this crisis continues.
- Canada’s unemployment rate is the highest it has ever been before.
- In the end, this will affect mortgage and home values because people will no longer be able to afford their housing.
“In Canada, the unemployment rate is higher than anybody anticipated, the numbers tend to reflect those that are actively seeking employment instead of including the number of people who have given up looking for a job.”