Impact on the Canadian Economy

The global pandemic, Covid-19 led to the Global Shutdown or Lockdown which resulted in ceasing of most of the economic activities. This has created a global recession and the adverse effects are being experienced by most of the nations across the world (Islam, Ferdous and Potenza, 2020). The businesses are closing down, people are losing their jobs, and many had to sell of their property being bankrupt and unable to pay their bills. The Canadian economy was not spared from the clutches of the pandemic. There are no new recruitments taking place due to restriction on most of the economic activities. Even after the relaxation of the lockdown, the companies are finding it difficult to cope with their previously incurred losses. The increase in the unemployment rate is causing mental health illness to the people. The ones who are in job are insecure about the stability of their job while those who have lost their jobs or are unable to find a job are struggling through anxiety and depression. In Canadian economy, the jobs of 5.5 million people were affected by the pandemic (Henderson, 2020).. The unemployment is also leading to increase in suicide rates. With every 1% rise in unemployment, the rate of suicide increases by 0.79%. This is a threat to the economy.

Implications on Future

The major implications of this global pandemic and the scenario of unemployment on the future would be reflected in terms of poor condition of the job market, deteriorating economic conditions and falling GDP. The non-economic impact of this Covid-19 would be on the human minds. The people around the world are already in depression and anxiety. This would aggravate in future as the economic conditions would not seem to get better. The level of distress and other mental health issues would be increasing in future. When the economy is slumping the morale and confidence of the workers also fall. The employed would always be worried and anxious about losing their jobs. This would impact the working pattern of the employees. Many people have tried doing over time or working on more projects during this recession so that they can prove themselves worthy enough for their organization and prevent their layoff (Islam, Ferdous and Potenza, 2020). The employees while in service are also preparing their resumes as they want to look for other jobs because their current employment is unstable.

Effect on Fiscal and Monetary Policy

The fiscal and monetary policies would have to be adjusted to reduce the recessionary effect of the global pandemic. The fiscal policies include government spending. During the pandemic when the rate of depression and anxiety has reached a high level, the government needs to think seriously about funding the mental health care programs. To deal with depression, the government has to bear a cost of 32.3 billion dollars while anxiety costs the government 17.3 billion dollars (Henderson, 2020). Thus, the amount allocated for healthcare should now be divided among physical and mental health care. The increase in government expenditure on health care can improve the condition of mental health across the economy. The alcohol consumption has increased greatly during Covid-19 as people are trying to fight out their depression and anxiety. The government could increase the tax on such goods to control its consumption to some extent.

Impact on Southern Alberta

In Alberta, the oil and gas industry has been facing serious downturn and loss due to the global pandemic. The unemployment rate of Alberta has reached 15.5%, which is very high for a province (Henderson, 2020). The mental health problems are not being taken into account in the health care systems. Though Alberta has a good and well-funded health care system as compared to other provinces in Canada, yet mental health-related illnesses are being neglected.

Impact on Personal Economic Situation

The Covid-19 pandemic is likely to affect my personal economic situation. I am quite insecure about my future as I can’t clearly visualize what would happen to my professional career. The job market is almost saturated and there are no new recruitments taking place. I am uncertain about the time it will take for the economy to retain its previous state. The stability of my current job is also under question. Therefore, my financial condition as well as probability of getting a new job is all quite uncertain. This economic instability and recession has been causing me anxiety and depression.

References

Henderson. J., 2020. ‘It hurts’: Workers grapple with mental impacts of Alberta’s recession, COVID-19 pandemic. [online] The Globe and Mail. Available at https://www.theglobeandmail.com/canada/alberta/article-it-hurts-workers-grapple-with-mental-impacts-of-albertas-recession/. [Accessed 16 November 2020]

Islam, M.S., Ferdous, M.Z. and Potenza, M.N., 2020. Panic and generalized anxiety during the COVID-19 pandemic among Bangladeshi people: An online pilot survey early in the outbreak. Journal of affective disorders, 276, pp.30-37.