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Posthaste: Canada’s arts and leisure sectors have been hit by the huge monetary blow from the pandemic

August 18, 2021
Jason Wilson

  1. Summary
  2. Executive

A new StatsCan report reveals the extent of the damage

Author of the article:

Kelsey Rolfe

Publication date:

August 18, 2021 • 31 minutes ago • Read for 5 minutes • Join the conversation Blank movie poster frames on display outside the Landmark Cinemas theater in Fort McMurray on Friday, June 14, 2020.Blank movie poster frames on display outside the Landmark Cinemas theater in Fort McMurray on Friday, June 14, 2020. Photo by Laura Beamish / Fort McMurray Today / Postmedia Network files

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A new report paints a bleak picture of the pandemic’s toll on Canada’s ailing cultural and recreational sectors, reporting that these industries suffered “massive” financial losses during the pandemic.

According to Statistics Canada, every industry within the sector saw a decline in operating income in 2020, with the exception of sound recording. The very personal nature of the sector – which includes the performing arts, amusement parks, film exhibitors and distributors, and book and newspaper publishers – contributed to its funding problems.

According to StatsCan, spending on salaries, wages, commissions and social benefits has decreased in all industries despite government support.

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Particularly significant sales declines in the film and TV exhibition industry of 69.2 percent were highlighted in the report, which can be attributed to cinema closings and wholly or partly digital film festivals. The expenses for salaries and social benefits also fell by 62 percent. While film releases were delayed and film and television production temporarily suspended during the pandemic, Canadian film and video distributors and the post-production industries saw more modest drops in operating income of 15.2 percent and 13.4 percent, respectively.

Book publishers recorded a drop in sales of 5.5 percent, which can be attributed to delivery and distribution problems as well as delayed or canceled book presentations and author trips.

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One bright spot has been the recording industry, which does not rely on in-person events and has benefited from Canadians’ use of streaming music services on cell phones and other mobile devices. With the exception of recording studios, the industry saw modest growth in 2020 and only minor declines in salary and benefits.

The arts and leisure sector, which includes large live events such as theater and dance performances, concerts and sporting events, suffered staggering sales declines of between 43 and almost 68 percent in 2020.

The industry, however, suffered fewer downsizing thanks to government support programs – more than half of the companies in the industry received Canada’s emergency wage subsidy – and grants and funding opportunities.

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Only the entertainment and recreation industries – including golf courses, country clubs, marinas, ski slopes and recreational sports centers – performed better with just 27.7 percent lower sales and 23 percent fewer employees.

The ability of cultural sector companies to adopt digital technology enabled them to take a new approach to cultural creation, distribution and audience accessibility and engagement, the agency said, which “eased some financial pressures and staffing problems”. The digital transformation has been in full swing for years, from video and music streaming services to online book purchases.

But, the agency said, while the technology may have expanded its reach during the pandemic, it hasn’t always translated into revenue.

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This is especially true for art and leisure, said StatsCan. “While some companies have been able to act in innovative alternative ways by hosting digital shows, courses or events, that was not enough to ease the financial pressures.”

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‘TONE DEAF’ LIQUOR TAX The liquor industry has complained of unfair taxation for years and now it is doing something about it. Some of Canada’s most iconic liquor names have partnered with artisan distillers to push for a cut in “devastating” federal taxes on liquor that penalize the industry relative to competitors in other countries. The newly formed coalition of small and large players hopes to make the plight of the craft distilleries the subject of the federal election. They argue that the federal excise tax on liquor – about $ 4 per standard bottle – is “numb” and is holding the fledgling micro-distillery industry from the explosive growth that microbrewers have enjoyed for years. Jake Edmiston has the story. Photo by Rick Bowmer / AP Photo Files

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  • NDP leader Jagmeet Singh will make an apartment announcement.
  • The US Federal Reserve publishes the minutes of the last meeting.
  • Today’s data: Canadian Index of Consumer Prices, US Building Permits and Housing Starts
  • Merits: Robinhood Markets, Nvidia, Cisco Systems, Target, Lowe’s, TJX

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US companies are on the lookout for workers and more Canadians are tempted to consider moving south.

Indeed, according to Indeed’s latest US recruitment report, job postings in the US were up 35.2 percent as of July 30, 2020, compared to February 1, 2020. Indeed also posted a 50-percent increase in urgent job postings Percent, and the proportion of posts mentioning bonuses and other hiring incentives had more than doubled. That’s a selling point for Canadians looking for higher salaries.

Here are the US jobs Canadian workers click on.

The graphic below originally appeared in the FP Work newsletter. Sign up here to have it in your inbox every Tuesday.

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No doubt you’ve heard of the benefits of speaking a second (or third) language. It’s a great exercise for your brain keeping the gray matter going for not only increasing your intelligence but potentially fighting off dementia as well. It conveys trust and emotional intelligence. It can help you think more creatively and even make it easier to learn new skills.

While these are all great advantages, they can be a little difficult to quantify. But here’s one reason to learn a foreign language that’s pretty much in black and white. Bilingual workers can earn between 5 and 20 percent more money per hour than those who speak only one language.

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So how do you start? Our content partner StackCommerce recommends Babbel, the world’s top-selling language learning app. Find out more here.

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Today’s Posthaste was written by Kelsey Rolfe (@kelseyarolfe), with additional coverage from The Canadian Press, Thomson Reuters, and Bloomberg.

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Listen to Down to Business for in-depth discussions and insights into the latest developments in the Canadian economy, available wherever you get your podcasts. Check out the latest episode below:

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