Business Updates – October 2024

Stay in the know with some recent business updates relevant to business and the economy.

Can T-Swift stop a T-cession? What’s next for Toronto’s flagging economy

Toronto’s economic growth slows, prompting fears of recession. Experts cite global uncertainty, trade tensions, and housing market issues. Meanwhile, Taylor Swift’s upcoming concert is expected to boost local economy.

U.S. port workers and operators reach deal to suspend strike

A tentative agreement has been reached between the longshore workers union and the association representing port employers, potentially ending a 19-month strike at the Port of Vancouver. The union’s 6,500 members will vote on the agreement in the coming days. The strike had significantly impacted Canada’s economy and left shipping containers stacked up in Halifax.

Spirit Airlines Struggles to Reach Rescue Deal to Avoid Bankruptcy

Spirit Airlines is facing potential bankruptcy as it struggles to secure a rescue deal. The company has been severely impacted by the COVID-19 pandemic, leading to a significant drop in revenue. Its attempts to negotiate with creditors have so far been unsuccessful, increasing the risk of bankruptcy.

Credit card debt is growing among Canadian renters. What are the solutions?

Canadian renters are increasingly relying on credit cards, causing a surge in debt, according to a report by Hoyes, Michalos & Associates. The study found that 70% of insolvent tenants have credit card debt, with the average being $21,000. The situation calls for comprehensive solutions, including financial education and affordable housing initiatives.

Businesses face new limits on temporary foreign worker program

Canada’s Temporary Foreign Worker (TFW) program faces new restrictions. The government will limit the number of TFWs in the accommodation and food service sectors in areas with high unemployment. This aims to ensure Canadians get first access to jobs. Employers must also do more to hire locally before looking abroad.
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Food inflation crisis may be over, but high prices are here to stay

Despite the easing of the food inflation crisis, prices remain high. Key factors include climate change, labor shortages, and supply chain disruptions. While some experts predict a decrease, others caution that high food prices may persist. Consumers are urged to adjust their budgets and buying habits in response to these changes.

After subpar growth, Canada’s economy will ‘hit its stride’ in 2025, says Deloitte

Deloitte predicts Canada’s economy will regain momentum by 2025 following subpar growth. The country’s GDP is expected to grow 1.7% annually from 2022 to 2025, driven by digital transformation, energy transition, and healthcare innovation. However, Deloitte warns of potential headwinds including labour shortages, inflation, and geopolitical tensions.

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