Now that the crisis is upon us, job loss is going to be come somewhat the norm. Some people are temporarily laid off, but will soon find out that their lay offs are permanent. 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. The amount of people who have given up is quite high, and this will lead to a down turn for the housing market.
Key Takeaways:
- New data shows that more Canadians are losing jobs or working lower hours because of the coronavirus.
- These changes might not affect mortgage rates in the short term because of government support.
- In the long term, there will be more of an effect on mortgage rates and the economy.
“Our March job losses occurred when the initial crisis shock waves were still hitting financial markets.”
