The next generation of home buyers and members of minority groups are among those hardest hit financially by the COVID-19 pandemic, according to a TD Bank study.
The study found that 66% of Canadians in the 18-34 age range are bracing for – or have experienced – job losses or cut hours due to the economic impact of the coronavirus. To compare, the unemployment/underemployment rate among those older than 55 years old was 38%.
As for minorities, the rate was 64% among Black Canadians, 65% of South Asians, and 70% of Filipinos, versus the 53% rate in the general population.
In terms of financial capabilities, almost 30% of Indigenous households are anticipating the need to borrow money for essential expenses in the next few months. This rate was just under 20% in the general population.
Improving the prospects of minorities is among the main objectives of Royal Bank of Canada’s recently announced diversity initiative.
Last week, the institution pledged $150 million to ensure the financial betterment of non-white members of the population. Of this sum, $50 million will be invested until 2025 into 25,000 job openings for Black, Indigenous, and people of colour. The $100 million has been earmarked for loans over a five-year period to Black owners of small businesses.
“We know we’re not immune from systemic bias and racism, and we believe we have more work to do to better understand, identify and address issues that impede the success of Black, Indigenous and other racialized groups in our workforce,” RBC said.