Montreal recovered its signs before the pandemic and beyond

Employment in Montreal has been particularly strong throughout the pandemic, driven in large part by the information technology sector, which has experienced marked growth. Result: at 4.8%, the unemployment rate in the metropolitan area is the lowest ever recorded since this data was compiled.

Today, the Greater Montreal economy has employment levels 2% higher than at the beginning of the pandemicobserving Christian Bernard, vice president, international talents, business intelligence and communications at Montréal International.

” More people are working in the Montreal metropolitan area as we speak than when the virus hit in February 2020. “

These are not lowest-wage jobs, Mr. Bernard assured, but rather high-value-added jobs, which contribute to the wealth of the metropolis. This is an element that explains why Montreal’s economy is doing so wellhe believes.

These good wages also contribute to GDP growth in the metropolis, another important element in the recovery.

For Montreal, we expect growth of 3% in 2022 and 2.7% in 2023, Pedro Antunes explains. This means that the real income of every citizen will increase in the coming years.

It is not only in terms of job creation, but also in terms of wealth creation that Montreal continues to be an economic machine not only in Quebec, but throughout Canada.emphasis by Christian Bernard.

This good economic performance began before the pandemic and, if it slowed somewhat, is now rising again.

Economic fundamentals in Montreal have been good for several yearsbelieves Mr. Bernard.

" Public finances are healthy and the business environment is stable and predictable, making the metropolis an interesting choice for multinationals. "

More and more of them are looking at Montreal. In 2021, 100 investment projects for a record amount of $ 3.8 billion will be announced.

A good number of these companies belong to the field of information technologies, but the life sciences and aerospace also stand out, Christian Bernard pointed out.

A change in structure for the city center

A dark point in the picture, however: the city center is struggling to continue its wandering. About 68% of workers return to the office, but only a third of them plan to do so full-time, according to a survey conducted on behalf of the Metropolitan Montreal Board of Trade (CMM).

Returns continue to spend almost as much as before, but there will certainly be a shortage if many remain teleworking throughout the week. Traffic will drop by 19% to 25% and consumer spending will drop by approximately 14%, PwC Canada predicts.

The Conference Board is concerned about the modest consequences for small businesses.

The shock of this huge recession we have experienced has not yet been felt due to support programs, but the reality is there will be major structural changes that we will have to accept and which will be costly for some companies.fear of Pedro Antunes.

" This doesn’t mean we expect this to be the end of big cities, but it’s a structural change that it will take. [du] it's time to recover. "

The office occupancy rate is another aspect that should be monitored. This is holding up for now, but the Conference Board is worried about what will happen when the leases expire.

Most companies that lease downtown offices won’t leave immediately, these are adjustments that will come in the medium and long term.underlined Mr. Antunes.

Downtown contributes 33% of the City’s non-residential property tax; therefore, a decrease in its value would result in a loss of revenue for Montreal.

Downtown Montreal is ready for the revival of the district. City Center Commercial Development Corporation is particularly committed to offer diversity.

If we’re doing well, it’s because we don’t just rely on offices, says Glenn Castanheira, general manager of downtown Montreal. Even though the offices are closed, the streets are full of people. Why? Because we are the largest cultural center in Quebec and one of the largest in North America. We must continue to maintain this asset.

Mr. Castanheira hopes to see the new city center reborn. New businesses may want to look into a redesigned downtown. A trend that started before the pandemic and where it provided help.

Workers will change, he believes. It’s going to be more professionals, young people and companies that we’re not used to having downtown, like technology companies, creative companies, that used to be in other central neighborhoods, like Mile-End, in particular, and where to look today in the city center.

" We have a picture of the city center with business dinners and ties. Either you’re in finance, you’re a lawyer, or you’re an accounting clerk and you work in a gray cubicle. But it has changed a lot. "

The challenge for Montreal, Mr. Castanheira said, is to maintain the attractiveness and accessibility of the city center by addressing safety and sanitation problems, which continue to be observed in central districts. This is the basis. If this foundation is lost, everything collapsesHe added.

The demographic challenge

Although Montreal’s GDP growth is good, the Conference Board predicts that it will still be lower than other major cities in Canada, mainly due to labor shortages.

During the pandemic, immigration to Quebec dropped, Mr. Antunes explained. Now that the economy has risen, the labor market is tightening significantly.

This is a challenge for many employers, more in Quebec than elsewhere in Canada, because in Quebec, immigration is already low and the unemployment rate is very low.his observation.

It may be beneficial for workers, but for companies it is more problematic. This is a barrier to productive capacity, Mr. Antunes said. There are many companies that are not doing as much as they would like. Their growth is limited by lack of labor.

In the longer term, however, the situation should improve, the Conference Board estimates, which predicts that while barriers to international mobility, the population will increase, with an average growth of 0.6% per year. years between 2022 and 2026.